Chapter 14

What is (a) a production cost centre, (b) a service cost centre?

Suggest three ways that service cost centre costs may be charged to other cost centres.

What is meant by 'reciprocal service costs'?

What is the basic formula for absorbing production overheads into product costs?

What is non-production overhead?

What is a predetermined absorption rate?

What is meant by under- and over-recovery of overhead?

What is a cost pool and a cost driver?

How does \(\mathrm{ABC}\) differ from traditional absorption costing?