1. Why is the direct labor a poor base for allocating overhead in many companies?
2. why is the activity based costing system unacceptable for external financial reports?
3. In what fundamental ways does activity-based costing differ from traditional costing methods?
4. How can you consider costs of idle capacity in TCS? What's difference under ABC approach? Please explain.
5. How you can handle the difference between overapplied and underapplied cost in a JOC system? Please explain.
6. Explain difference between Weighted average method and FIFO for the computation of EUP in a PC system.