How are product costing and cost allocation related? What are the three criteria for the design of cost management systems? Why are cost flow diagrams useful in describing product costing systems? What are the characteristics of the following three costing systems: (a) job costing, (b) process costing, and (c) operation costing? How are job order, process, and operation costing the same? How are they different? Describe the predetermined overhead rate. What is the role of the predetermined overhead rate in product costing? Ideally, what does an allocation base reflect between the overhead cost and the activity (production of a product, for example)? What is two-stage cost allocation? What is continuous flow processing? Give at least three examples of products that might use continuous flow processing. What is each component of the basic cost flow model? Describe each component. "Cost allocation is arbitrary, so there is nothing gained by it. We should report only the costs that we know are direct." Do you agree? Why