• Describe variable costs and fixed costs and give an example of each.
• Describe direct costs and indirect costs and give an example of each.
• Distinguish between inventoriable costs and period costs.
• Give an example of how a manager can decrease variable costs while increasing fixed costs.
• How does a job costing system differ from a process costing system?
• Distinguish between actual costing and normal costing.
• Describe the differences between the weighted average and FIFO methods for process costing.
• Why switch from job costing to ABC?
• What are the key reasons for product cost differences between simple cost systems and ABC?
• Why is it important to classify costs into a cost hierarchy?