1. Some managers avoid obtaining personal relationships with any direct reports because they do not want to be at a disadvantage in resolving conflict or negotiating with a subordinate.
Does this idea seem reasonable to you? Why or Why not.
2. Overhead costs contain both a fixed and variable component. As such, an increase or decrease in volume does not result in a proportionate increase or decrease in cost. Explain how flexible budgeting is used in absorption costing to address that concern.
3. The application of manufacturing overhead to production is based on a pre-determined application rate of the cost driver. Discuss cost drivers and how they are determined for the cost allocation.
Discuss why prospective rates are used instead of historical rates in the application of overhead. ALl three questions need a paragraph answer, in APA format with one reference