1. Explain the cost-behavior patterns of variable and fixed cost.

2. Identify examples variable and fixed costs.

3. What is a cost driver?

4. Identify examples of a cost driver?

5. What is a relevant range?

6. What is the relationship between a cost driver and a relevant range?

7. Is financial accounting or management accounting more useful to an operations manager? Explain your answer.

8. Explain why profits could increase at a faster rate than sales. Be sure to utilize accounting terminology, such as variable costs and fixed costs. in your answer.

9. Explain what effects automating a production line would have on a company's cost structure using CVP terminology. Identify positive and negative effects of the automation.

10. What is a hybrid costing system?

11. What are the advantages of a hybrid system?

12. What are the two distinct methods of calculating product costs?

13. Compare and contrast the two distinct methods of calculating product costs.

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

15. Do activity-based costing systems always provide more accurate product costs than conventional cost systems? Explain your response.

16. Explain how traditional cost systems, using a single unit-level cost rate, may distort product costs.