Question 1. In any type of manufacturing business, there are many cost concerns—some are immediately obvious while others are hidden. If you started a manufacturing business, what type of budget would you choose, static or flexible? Explain why, and include the advantages and drawbacks of your choice.
Question 2. The process of using activity-based costing information to manage a business's activities, and thus its costs, is called activity-based management. How do managers use the information provided by an activity-based costing system?