Question: a) Briefly discuss the similarities and differences between the terms 'overhead absorption rate' and 'cost driver rate'. b) Briefly discuss the meaning of the term

a) Briefly discuss the similarities and differences between the terms 'overhead absorption rate' and 'cost driver rate'.

b) Briefly discuss the meaning of the term 'sensitivity analysis' and how it could be used in variable costing.

c) Briefly discuss the characteristics of good information that budgets might be expected to possess.

d) Briefly discuss the reasons why payback period is often preferred as an investment appraisal technique, and also its limitations.

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