1) Presented below is a list of terms, followed by definitions or descriptions of those terms.

a. Cost pool

b. Actual cost system

c. Cost driver

d. Manufacturing diversity

e. Traditional overhead allocation

f. Activity-based costing

g. Allocation base

h. Normal cost system

i. Manufacturing overhead allocation

Required: Match the letter next to each term or description on the list with the appropriate definition.

Each letter will be used only once.

1. A cost system that uses estimated overhead costs

2. An amount associated with cost objects that is used to proportionately  distribute costs to each cost object

3. A cost system that uses actual overhead costs

4. Uses a single manufacturing overhead cost pool and a single, plant-wide  allocation rate

5. Process of assigning or allotting an amount of manufacturing overhead cost to  each  unit of product based on some reasonable basis of distribution

6. An activity that causes a particular cost that is used to allocate that cost

7. Uses multiple cost pools to develop multiple allocation rates

8. A company manufactures some simple and some complex products

9. An accumulation of the costs associated with a specific cost object