A. Describe the difference between the weighted-average and FIFO method of process costing. Why is the weighted-average method preferred?

B. How do managers use the cost per equivalent unit to control material and conversion costs and to evaluate the performance of production department managers?

C. What do we mean by the term cost behavior? What is the difference among a variable, fixed, and mixed cost? Give an example of each.

D. Why is it important to keep the relevant range in mind when predicting total costs?

E. Why doesn't GAAP allow variable costing financial statements for external use?

F. Discuss the difference between variable costing and full costing. Why would income computed under full costing exceed income computed under variable costing if production exceeds sales?