Terms to Learn

This chapter and the Glossary at the end of this text contain definitions of the following important terms:

1. activity
2. activity-based costing (ABC)
3. activity-based management (ABM)
4. batch-level costs
5. cost hierarchy
6. facility-sustaining costs
7. output unit–level costs
8. product-cost cross-subsidization
9. product overcosting
10. product-sustaining costs
11. product undercosting
12. refined costing system
13. service-sustaining costs