1. What are the differences between raw materials purchased and raw materials used (or consumed)? Can you express raw materials purchased as a function of raw materials used and vice versa?

2. What is the difference between manufacturing costs and costs of goods manufactured?

3. Can you provide examples of manufacturing overhead? 3.a. What are examples of the keywords that distinguish between manufacturing overhead and the other two types of product costs, i.e., direct materials and direct labor? 3.b. Is there always a clear-cut decision on whether a cost should be classified as direct material or manufacturing overhead? Why or why not? 3.c. What are examples of the keywords that distinguish between product costs and period costs?

4. How to account for the depreciation on an expensive piece of office equipment? Why?

5. Describe the cost flow for product costs?

6. Express cost of goods sold as a function of ending finished goods inventory.

7. Would factory utilities versus office utilities be treated differently? Why or why not?

8. What do we call the assumed interest rate of 30 percent given in Walden (A)? Is it a marginal tax rate, average tax rate, or effective tax rate? What is the mathematical relationship between marginal tax rate and effective tax rate?

Directly or Indirectly Related to Walden (B):

1. Is the cost of this specific job unique? Are there other ways of determining the cost of this job? Why or why not?

2. Assume there are alternative ways of calculating the cost of this job. Can you provide the job costs using other methods. Provide calculations.

3. Assume there are alternative ways of calculating the cost of this job. Can you provide the price of this job using other methods? Provide calculations.

4. Which job costing method is most appropriate? Why or why not. (Note: The answer is not definitive. Therefore, you have the opportunity of picking a method and providing your arguments.)

5. Does choosing a specific costing method affect the profitability on this job? Why or why not?

6. Does choosing a specific costing method affect the overall profitability for the company? Why or why not?

7. Can we choose different costing methods for different products within a company? Why or why not?

8. What is the full absorption costing method?

9. Does U.S. GAAP require a certain type of costing method? Elaborate your answer.

10. Can different costing methods provide different information for managerial decision making?