1. What are the two dimensions of the activity- based management model? How do they differ?
2. Describe a financial (functional)-based responsibility accounting system.
3. Describe an activity-based responsibility accounting system. How does it differ from financial (functional)-based responsibility accounting?
4. What is driver analysis? What role does it play in process value analysis?
5. What is meant by "activity inputs"? By "activity output"? Explain what is meant by "activity output measurement."
6. What is activity analysis? Why is this approach compatible with the goal of continuous improvement?
7. What are value-added activities? Value-added costs?
8. What are non-value-added activities? Non-value- added costs? Give an example of each.
9. Identify and define four different ways to manage activities so that costs can be reduced.
10. Explain how value-added standards are used to identify value- and non-value-added costs.
11. Explain how trend reports of non-value-added costs can be used.