1.)

• What is activity-based costing?
• In your opinion, which type of costing - traditional or activity-based provides the most accurate product cost? Why?

2.)

• Why is it important for a manager to understand the relationships between cost, volume, and profit?
• What does it mean when a manager says, "We broke even this month."
• What does it mean when a manager says, "We had a profit of $10,000 this month?"