1. What are some differences between activity-based costing and the traditional costing systems?
2. What are some of the reasons that activity-based costing may be resisted by top management?
3. Why are activity rates important to management? In your opinion, why is the activity-based costing approach probably unacceptable for external financial reports?
4. What additional factors must the controller consider before deciding on an allocation base for the indirect manufacturing cost assignment to the departments?