Question 1: What has happened in recent industrial history to reduce the usefulness of direct labor as the primary basis for allocating overhead to products?
Question 2: In an automated manufacturing environment, what basis of overhead allocation is frequently more relevant than direct labor hours?
Question 3: What is generally true about overhead allocation to high-volume products versus low-volume products under a traditional costing system?
Question 4.
A) What are the principal differences between activity-based costing (ABC) and traditional product costing?
B) What assumptions must be met for ABC costing to be useful?