Chapter 19

2.) How is the predetermined overhead allocation rate used to allocate overhead?

4.) Why is using a single plantwide overhead allocation rate not always accurate?

6.) What is activity-based management? How is it different from activity-based costing?

8.) What are the four steps to developing an activity-based costing system?

10.) List two ways managers can use ABM to make decisions.

12.) Explain the difference between target price and target cost.

14.) What is a just in time management system?

16.) What are the inventory accounts used in JIT costing?

18.) Why is JIT costing sometimes called backflush costing?

20.) What is the purpose of quality management systems?

22.) Prevention is much cheaper than external failure. Do you agree with this statement? Why or why not?

24.) Why are some quality costs hard to measure?