1. Define the term Job-Order Costing.
2. What is a predetermined overhead rate? How is it computed?
3. What is under-applied overhead? What is over-applied overhead? What happens to these amounts at the end of the period?
4. What is the fundamental difference between absorption costing and variable costing?
5. What is a segment of an organization? Provide three examples of segments.
6. What costs are assigned to a segment under the contribution approach?
7. How is the segment margin different from the contribution margin?