1. Job order manufacturing and process manufacturing are two major costing systems used in manufacturing. Answer the following questions regarding these two systems: a. Compare and contrast the two costing systems. b. Which costing system should a service firm, such as an advertising agency use? c. How do these two systems provide decision-making information? ?

2. Describe activity based costing.? a. Give two examples where activity based costing is preferable over traditional costing. b. How is activity-based costing useful for decision making? c. Discuss the three overhead rate methods used in activity-based costing and consider their relative usefulness.