Know the three major categories of manufacturing costs (DM, DL, MOH) and how they are assigned to jobs.

Know the flow of costs through the production system and how the different accounts relate to each other.

Know how the flow of costs are recorded.

Know what the predetermined overhead rate is, how it is calculated, and how manufacturing overhead costs are applied to products.

Know how over- and underapplied overhead arise and how they are disposed of at the end of the period.