Module Part REF Index Knowledge of Questions Page Q/ Figure/ Index
Module 6: Tools for creating and
M6 managing value 300
M6 Part A Value chain 301
M6 Part A Table 6.1 Stakeholder value 4 Types of stakeholder value 301 Table
Porter's organisational value chain:
1. Primary activities
M6 Part A Example 6.1 Organisational value chain for iPad 2. Support activities 301 Question
Industry value chain:
1. Supplier value chain
Supplier, organisational and customer 2. Channel value chain
M6 Part A Figure 6.2 value chains 3. Customer value chain 302 Figure
1. Traditional approach
2. Activity-Based Costing (ABC)
3. Time-driven activity-based costing
M6 Part B Strategic Product Costing 4. Adjusting time-driven activity-based costing 303
M6 Part B Product costing 303
Traditional approach to allocating indirect
M6 Part B Case Study 6.1 costs 1. Traditional approach 303 Question
M6 Part B Activity-Based Costing (ABC) 2. Activity-Based Costing (ABC) 305
4 hierarchies of ABC costing's activities:
1. Unit level costs
2. Batch level costs
Hierarchy of costs—ice-cream 3. Product sustaining costs
M6 Part B Example 6.2 manufacturing 4. Facility level costs 306 Question
M6 Part B Value engineering 306
M6 Part B Cost drivers 306
M6 Part B Table 6.2 Activities and their Drivers ABC method's cost drivers VS cost pools 307 Table
When activity-based costing is
M6 Part B Example 6.3 useful—capturing complexity ABC method's cost drivers VS cost pools 307 Question
7 Steps of ABC method:
1. Activity analysis
2. Create cost pools
3. Establish the cost drivers
4. Identify the number of cost drivers
5. Determine the ABC allocation rate
6. Allocate cost pools to each product line
M6 Part B Steps in Activity-based costing 7. Calculate the indirect cost per unit 308
Steps for implementing activity-based
M6 Part B Figure 6.3 costing 309 Figure
Activity-based costing indirect cost
M6 Part B Example 6.4 allocation to council day care services 310 Question
Allocating indirect costs with activity-
M6 Part B Case Study 6.2 based costing 310 Question
Benefits of the Activity-based Costing
M6 Part B System 314
M6 Part B Case Study 6.3 Comparing the two costing systems Traditional VS ABC allocation methods 314 Question
Module 6: Tools for creating and
M6 managing value 300
M6 Part A Value chain 301
M6 Part A Table 6.1 Stakeholder value 4 Types of stakeholder value 301 Table
Porter's organisational value chain:
1. Primary activities
M6 Part A Example 6.1 Organisational value chain for iPad 2. Support activities 301 Question
Industry value chain:
1. Supplier value chain
Supplier, organisational and customer 2. Channel value chain
M6 Part A Figure 6.2 value chains 3. Customer value chain 302 Figure
1. Traditional approach
2. Activity-Based Costing (ABC)
3. Time-driven activity-based costing
M6 Part B Strategic Product Costing 4. Adjusting time-driven activity-based costing 303
M6 Part B Product costing 303
Traditional approach to allocating indirect
M6 Part B Case Study 6.1 costs 1. Traditional approach 303 Question
M6 Part B Activity-Based Costing (ABC) 2. Activity-Based Costing (ABC) 305
4 hierarchies of ABC costing's activities:
1. Unit level costs
2. Batch level costs
Hierarchy of costs—ice-cream 3. Product sustaining costs
M6 Part B Example 6.2 manufacturing 4. Facility level costs 306 Question
M6 Part B Value engineering 306
M6 Part B Cost drivers 306
M6 Part B Table 6.2 Activities and their Drivers ABC method's cost drivers VS cost pools 307 Table
When activity-based costing is
M6 Part B Example 6.3 useful—capturing complexity ABC method's cost drivers VS cost pools 307 Question
7 Steps of ABC method:
1. Activity analysis
2. Create cost pools
3. Establish the cost drivers
4. Identify the number of cost drivers
5. Determine the ABC allocation rate
6. Allocate cost pools to each product line
M6 Part B Steps in Activity-based costing 7. Calculate the indirect cost per unit 308
Steps for implementing activity-based
M6 Part B Figure 6.3 costing 309 Figure
Activity-based costing indirect cost
M6 Part B Example 6.4 allocation to council day care services 310 Question
Allocating indirect costs with activity-
M6 Part B Case Study 6.2 based costing 310 Question
Benefits of the Activity-based Costing
M6 Part B System 314
M6 Part B Case Study 6.3 Comparing the two costing systems Traditional VS ABC allocation methods 314 Question
