1. What are the major differences between managerial and financial accounting?
2. Explain how a contribution margin (variable costing, behavioral income statement) differs from an income statement prepared in accordance with US GAAP.
3. Why are certain costs referred to as product costs? What are the major types of product costs incurred by a manufacturer?
4. Define the following terms.

• Overhead for the production departments.
• Overhead for non-production departments.

1. Explain the distinction of variable costs, fixed costs, and mixed costs.
2. Explain the difference between direct and indirect costs.
3. Distinguish between controllable and uncontrollable costs.
4. Define sunk costs and opportunity costs.