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A great deal of disagreement exists about what costs are traceable and what costs are common. Some people claim that except for direct materials, virtually

  • A great deal of disagreement exists about what costs are traceable and what costs are common. Some people claim that except for direct materials, virtually all costs are common fixed costs that cannot be traced to products. Others assert that all costs are traceable to products; there are no common costs. What are your thought, explain your position?
  • Should fixed manufacturing overhead costs be treated as period or product costs, defend your response.
  • Why are top management support and cross-functional involvement crucial when attempting to implement an activity-based costing system?
  • What types of costs should not be assigned to products in an activity-based costing system? Why?

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