Product-sustaining activities

Assignment Help Managerial Accounting

Reference no: EM13180598

Question #1

a) List and describe four potential problems with a "traditional" overhead allocation system.

b) List and describe four "red flags" that may indicate you should consider revising your overhead allocation system.

Question #2

a) Describe the differences between unit-related, batch-related, and product-sustaining activities. Give one example of each type of activity.

b) Describe the difference between transaction drivers and duration drivers. When would one type be preferred over the other?

Reference no: EM13180598

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