1. Explain why functional, or volume-based costing approaches may distort costs.
2. Explain how an activity based costing (ABC) system works for product costing.
3. Apply the concepts of activity based costing to Freightways company and provide examples of key concepts as requested. For example, identify activities, cost drivers, cost objects of any service in Freightways.
4. Explain how unit standards are set and why standard cost systems are adopted.
5. Explain the difference between ideal and currently attainable standards.
6. Describe the basic concepts underlying variance analysis, and explain when variances should be investigated.
7. Explain the purpose of a standard cost sheet.
8. Explain the types of information you need to calculate a break-even point and specified profit point (standard);
9. Explain how CVP analysis is useful for business owners in their decision-making.