1. List the advantages and disadvantages of direct costing and absorption costing. Why is activity based costing currently the recommended strategy?

2. What is the difference between cost and price?

3. Why would a firm continue to produce styles when it can source styles and not have any of the start-up costs or problems? What other factors does a firm have to consider?

4. How would costs change if a style were sourced? Would there be fewer costs? Additional costs?

5.Why would a firm not put all new styles in a line every season?

6. What factors are negotiated in determining how much a retailer actually pays a manufacturer for a product?

7. What are the advantages and disadvantages of cost-based pricing?

8. What are the advantages and disadvantages of demand-based pricing?