3-1. List and explain four purposes of product costing.

32. Explain the difference between job-order and process

costing.

33. How is the concept of product costing applied in ser-

vice industry firms?

34. What are the purposes of the following documents:

(a) material requisition form, (b) labor time record, and

(c) job-cost record.

35. Why is manufacturing overhead applied to prod-

ucts when product costs are used in making pricing

decisions?

36. Explain the benefits of using a predetermined overhead

rate instead of an actual overhead rate.

37. Describe one advantage and one disadvantage of prorat-

ing overapplied or underapplied overhead.

38. Describe an important cost-benefit issue involving

accuracy versus timeliness in accounting for overhead.

39. Explain the difference between actual and normal

costing.

310. When a single, volume-based cost driver (or activity

base) is used to apply manufacturing overhead, what is the managerial accountants primary objective in select- ing the cost driver?

311. Describe some costs and benefits of using multiple overhead rates instead of a plantwide overhead rate.

312. Describe the process of two-stage cost allocation in the development of departmental overhead rates