1. Discuss the importance of assigning costs to products and services.
2. Discuss the concept of absorption costing.
3. What will you learn in this chapter on Job-order costing?
4. When is job-order costing the preferred type of costing system?
5. How is the unit product cost determined?
6. Describe the purpose of a job cost sheet and information included on such a document.
7. Explain how direct materials cost is measured.
8. Explain the process for measuring direct labor cost.
9. Describe in detail the complications of assigning manufacturing overhead to a specific job.
10. Explain in words the equation for computing predetermined overhead rate.
11. When is the predetermined overhead rate computed? Why?
12. List and describe the four steps in computing the predetermined overhead rate.
13. Explain the process for applying manufacturing overhead to a job.
14. Why should a company not use actual amounts of overhead cost and allocation base?
15. How would you recommend that a company choose an allocation base?