1. Explain how activity-based costing systems can provide more accurate product costs than traditional cost systems.

2. What are the four parts of the cost hierarchy? Briefly explain each part, and contrast this cost hierarchy to the fixed-variable dichotomy?

3. What is activity-based management and how can it be used to improve the profitability of a company?

4. The last step of the five-step decision making process is implementing the decision, evaluating performance, and learning. How can a balanced scorecard play a role in helping to assure this final step will be successful?

5. A machine has been identified as a bottleneck and the source of the constraint for a manufacturing company that has multiple products and multiple machines. Discuss ways the company can overcome the bottleneck.