1. How does ABC costing and activity based management work hand in hand with cost, volume, and profit analysis? Do you feel that cost, volume, profit works best with a traditional overhead method or activity based costing method?
2. What would happen if you were using cost, volume, profit analysis and certain variable costs within your company should have been fixed costs? How does this affect the operating leverage of the company?
3. What is a "weighted average contribution margin? Why is it important to determine the contribution margin for each product manufactured by a company?