Questions:
1. Why must the word cost be accompanied by an adjective to be meaningful?
2. Why is it necessary to specify a cost object before being able to distinguish between a direct cost and an indirect cost?
3. Why is it necessary for a company to specify a relevant range of activity when making assumptions about cost behavior?
4. How do cost drivers and cost predictors differ, and why is the distinction important?
5. How do a product cost and a period cost differ?