1. Compare the manufacturing, merchandising, and service sectors. How do they differ as to the kinds of businesses in each category, the nature of their output, and type of inventory, if any?
2. How would you define the following costs using graphs and examples: Variable cost, fixed cost, step cost, semi-variable/fixed cost.
3. In what way does the accounting treatment of factory overhead differ from that of direct material and direct labor cost? Explain it using numerical example.
4. How would you define the term Economic Order Quantity?