pleasee pleaseee help asap

QUESTION THREE

a) Explain the difference between a product cost and a period cost. Why is manufacturing

overhead considered an indirect cost of a unit of product?

b) What is an under-applied overhead? Provide two reasons why overhead might be under-

applied in a given period.

OUESTION FOUR

a

*There is no such thing as a fixed cost - depending on how long it is your time horizon all

costs may become variable'. Do you agree? What is the implication of your answer for CVP

analysis?

b) Define cost object. Describe with an example how a given cost item can be both a direct cost

and an indirect cost.

c) Define relevant costs and discuss: (1) whether all future costs are relevant for decision making

and (2) whether variable costs are always relevant and fixed costs are always irrelevant.