1.If variable manufacturing overhead is applied to production on the basis of direct labor-hours and the direct labor efficiency variance is unfavorable, will the variable overhead efficiency variance be favorable or unfavourable, or could be either?

2. Why in the activity-based costing system unacceptable for external financial reports?

3. In what fundamental ways does activity-based costing differ form traditional costing methods?

4. Why is direct labor a poor base for allocating overhead in many companies?

5. What is a flexible budget and how does it differ from a static budget?

6. What assumption is simplicity made about cost behavior when a static planning budget is directly compared to actual results? Why is this assumption questionable?

7. What is the main difference between static budget and flexible budget? How is variance analysis performed in a business organization?

8. What is the main function of the statement of cash flow for the controller?

9. In what fundamental ways does statement of cash flow differ from cash budget?

1. In what fundamental ways does activity-based costing differ from traditional costing methods?
2. How can you consider costs of idle capacity in TCS? What's difference under ABC approach? Please explain
3. How can you handle the difference between overapplied and underapplied cost in a JOC system? Please explain
4. Explain difference between Weighted average method and FIFO for the computation of EUP in a PC system.