Questions:
1. In an activity-based management system, what are value-added and non-value-added activities?
2. How do value-added and non-value-added activities affect manufacturing cycle efficiency?
3. Why must cost drivers be designated in an activity-based costing system?
4. How are product and service costs computed using an activity-based costing system?
5. Under what conditions is activity-based costing useful in an organization and what information do activity-based costing systems provide to management?
6. What criticisms have been directed at activity-based costing?