How are the unused resources measured

Reference no: EM13903405

1. What is the difference between a capacity-sustaining cost and a unit-level cost? How can managers use a hierarchy of overhead costs like the one presented in Exhibit 3.9?

2. Of the four categories of costs in the hierarchy, which one would you most expect to have unused resources? Why?

3. How are the unused resources measured?

4. How does activity-based management use the hierarchy of costs?

5. Would you expect companies that adopt ABC to add value to shareholders? How would you measure such added value?

Reference no: EM13903405

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