1. Discuss the elements of product costs affecting the cost of inventories.

2. Discuss the flow of manufacturing process.

3. Describe the job order costing system.

4. How should be overhead variances be accounted for at the end of the period?

5. Differentiate process costing from job order costing.

6. Describe the characteristics of FIFO method and Average method when used in process costing.

7. How are beginning inventories accounted for using FIFO method and Average method?

8. Define backflush and its relationship to just-in-time system.

9. Discuss the steps in calculating unit costs under ABC system.

10. How does ABC system differ from traditional methods of applying overhead to products?

11. Define joint costs and explain why joint costs are allocated to the main products and by-products.

12. Discuss the different methods of allocating joint costs to products.

13. Discuss the available accounting treatment for by-products.

14. Explain the concept of standard cost and its importance to decision makers.

15. When is variance considered to be favorable or unfavorable?