1.Under what conditions is direct labor a valid basis for allocating overhead?

2.What has happened in recent industrial history to reduce the usefulness of direct labor as the primary basis for allocating overhead to products?

3.In an automated manufacturing environment, what basis of overhead allocation is frequently more relevant than direct labor hours?

4.What is generally true about overhead allocation to high-volume products versus low-volume products under a traditional costing system?

5.What are the principal differences between activity-based costing (ABC) and traditional product costing?

6.What is the formula for computing activity-based overhead rates?

7.What steps are involved in developing an activity-based costing system?

8.What is an activity cost pool?

10.What is a cost driver?

11.What is the formula for assigning activity cost pools to products?

13.What is the primary benefit of activity-based costing?

14.What are the limitations of activity-based costing?

15.Under what conditions is ABC generally the superior overhead costing system?

16.What refinement has been made to enhance the efficiency and effectiveness of ABC for use in managing costs?

*18.

a.Describe the philosophy and approach of just-in-time processing.

b.Identify the major elements of JIT processing.