Reference no: EM132515824

Question 1: Under what conditions is direct labor a valid basis for allocating overhead?

Question 2: What has happened in recent industrial history to reduce the usefulness of direct labor as the primary basis for allocating overhead to products?

Question 3: In an automated manufacturing environment, what basis of overhead allocation is frequently more relevant than direct labor hours?

Question 4: What is generally true about overhead allocation to high-volume products versus low-volume products under a traditional costing system?

Question 5: What are the principal differences between activity-based costing (ABC) and traditional product costing?

Question 6: What is the formula for computing activity-based overhead rates?

Question 7: What steps are involved in developing an activity-based costing system?

Question 8: What is an activity cost pool?

Question 9: What is a cost driver?

Question 10: What is the formula for assigning activity cost pools to products?

Question 11: What is the primary benefit of activity-based costing?

Question 12: What are the limitations of activity-based costing?

Question 13: Under what conditions is ABC generally the superior overhead costing system?

Question 14: What refinement has been made to enhance the efficiency and effectiveness of ABC for use in managing costs?

Question 15: Describe the philosophy and approach of just-in-time processing.

Question 16: Identify the major elements of JIT processing.