1. Distinguish between financial and managerial accounting for (a) early users of the reports, (b) types and frequency of reports, and (c) purpose of the reports.

2. How are manufacturing costs classified?

3. What are the similarities between job order and process cost system?

4. What is the meaning of the term equivalent units of production?

5. The cost-volume-profit (CVU) analysis is based entirely on unit costs. Do you agree? Explain.

6. Breakeven analysis is of limited use by management, because a company cannot survive on breakeven alone. Do you agree? Explain.

7. What are the steps that management uses for the decision-making process?

8. Define the term opportunity cost. How is this cost relevant to the make or buy decision?

9. What is a budget? How can a budget contribute to good management of any organization?

10. What is the criterion that helps determine the time horizon of a budget period? What is the most common budget period?