Questions:
1. Identify at least four typical cost pools for activity-based costing in most organizations.
2. In activity-based costing, costs in a cost pool are allocated to _____ using predetermined overhead rates.
3. What company circumstances especially encourage use of activity-based costing?
4. What are two main goals in managerial accounting for reporting on and analyzing departments?
5. Is it possible to evaluate a cost center's profitability? Explain.