1. For most prospective decision making should we rely on average costs?

2. Cost varies as volume changes because of what type of cost?

3. What is the difference between cost and expense?

4. What are the stages of inventory once we acquire it, up until we sell a finished product?

5. Are general administrative expenses considered to be product or period expenses?

6. Explain the three major approaches to product costing.

7. What is the basic approach to cost allocation in a non-ABC system?

8. What is the focus of the ABC approach to cost allocation?

Book reference Finance & Accounting for Nonfinancial Managers Fifth Edition Steven A. Finkler, Ph.D, CPA