1. Do you think that variable costing is useful for controlling company costs? Defend your response with examples.

2. Explain why variable costing and absorption costing can result in different period incomes. Support your argument by an example which spans more than one accounting period.

3. Why should each department participate in preparing its own budget? How much control do you think each department should have? Does your answer differ for when considering a service firm versus a manufacturing firm?

4. Provide an example that shows process costing divided among different departments. In determining overhead can each department uses its own pre-determined overhead rate? Provide justification if you disagree. If you agree, justify it and provide an example.

Ensure to answer all questions and give a give refrences(peer reviewed) and intext citation to back up your answers

 

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