-Question A -Why do companies use predetermined overhead rates rather than actual manufacturing overhead costs to apply overhead to jobs? -What is underapplied overhead and overapplied overhead? What disposition is made of these amounts at the end of the period? What is meant by the term break-even point? -What is the basic difference between absorption costing and variable costing? - Explain how the segment margin differs from the contribution margin. In what fundamental ways does activity-based costing differ from traditional costing methods such as job-order costing ? What is a budget? What is budgetary control? What is meant by the term responsibility accounting? What is a flexible budget and how does it differ from a static planning budget? - Define the following terms: incremental cost, opportunity cost, and sunk cost