This image shows a CPA management accounting study note from GevorgCPA.com explaining activity-based costing and service department cost allocation including what overhead costs are, the two methods of OH allocation, how traditional costing uses a single predetermined rate, how ABC recognizes multiple cost pools and cost drivers for more accurate product costing, pros and cons of each method, and how SDCA allocates support department costs to production departments, relevant to CPA PEP Core and CFE exams.