I actually do not have the book so I am unable to see the case.

Please go to your Senior Seminar in Accounting-Cases textbook. I would like you to go to the information on pages 33-46 in your case notebook, please answer the following questions:

What does it mean by the flow of costs in a manufacturing company? What account(s) does this flow trace? Could we have a flow of costs for a service company? What account(s) could be affected?

What are the basic differences between a traditional cost system and an Activity Based Costing, (ABC) system? Could an ABC costing system be used in a service company? Please give an example.

Please review the exhibits listed in this case. What justifications might you still have in using a traditional system over an ABC cost system?

Briefly explain what the paragraph on page 34 of the case which mentions Exhibit 1 means.

Briefly explain the sentence on page 35 of the case which mentions Exhibit 2.

How might we use the information that is contained in Exhibit 3? (Note: Exhibit 3 is first mentioned on page 35 of the case and as an exhibit in the back of the case?)

Based on the discussion centered on Exhibit 4, what costs would you want closer to the 'bulls-eye' and which ones would you want in the 'outer ring'. Please explain.