1. What is meant by cost structure? Explain how a company's cost structure affects its break-even point. In your opinion, what is the best level of cost structure? Explain
2. J. P. Alexander claims that the relevant range concept is important only for variable costs. Explain the relevant range concept. Do you agree with J. P.'s claim? Explain
3. What are the principal differences between activity-based costing (ABC) and traditional product costing? Which is the preferred method? Explain.