Questions -

1. Compare and contrast direct and indirect costs.

2. Identify three examples of direct costs.

3. Identify three examples of indirect costs.

4. Compare and contrast variable and fixed costs.

5. Identify three examples of variable costs.

6. Identify three examples of fixed costs.

7. Compare and contrast prime and conversion costs.

8. Identify three examples prime costs.

9. Identify three examples conversion costs.

10. Describe cost-volume-profit analysis.

11. Explain the underlying assumptions of CVP analysis.

12. Describe the steps involved in CVP analysis.

13. Describe sensitivity analysis

14. Explain how sensitivity analysis plays a part in CVP analysis.

15. Define cost pool and cost allocation base.

16. Identify three examples of a cost allocation base.

17. What is the difference between under-allocated and over-allocated direct costs?

18. What is the cause of under-allocated and over-allocated direct costs?

19. Compare and contrast job costing and process costing.

20. Identify two examples of job costing.

21. Identify two examples of process costing.

22. What is the difference between the weighted average process-costing method and the FIFO process-costing method?

23. Explain the FIFO process-costing method.

24. When would the FIFO process-costing method be used?

25. Explain the weighted average process-costing method.

26. When would the weighted average process-costing method be used?