1. How does Lean Production reduce or eliminate the difference in reported net operating income between absorption and variable costing?
2. What are unit-level, batch-level, product-level, customer-level, and organization- sustaining activities?
3. Why are top management support and cross-functional involvement crucial when attempting to implement an activity-based costing system?
4. When activity-based costing is used, why do manufacturing overhead costs often shift from high-volume products to low-volume products?
5. Airlines sometimes offer reduced rates during certain times of the week to members of a businessperson's family if they accompany him or her on trips. How does the concept of relevant costs enter into the decision by the airline to offer reduced rates of this type?