1. Cost allocation to different departments, products, processes within a business is an often contentious issue in managerial accounting systems. Most businesses allocate at least some costs. Some division managers argue that unless they have control over a particular cost they should not absorb any of it. Discuss the validity, or lack thereof, of that line of reasoning.

2. Chapter 10 introduces the basics of an insurance contract. Discuss : (1) Why it is important to define the insured (2) the importance of the availability of riders . For example, I may want to add an optional disability benefit to my life insurance contract, you may not. (3) Why the three major types of exclusion need to be defined as opposed to "assumed".