Question 1:
a) List and explain four potential problems with a "traditional" overhead allocation system.
b) List and explain four "red flags" that may indicate you should believe revising your overhead allocation system.
Question2:
a) Explain the differences between unit-related, batch-related, and product-sustaining activities. Give one case of each type of activity.
b) Explain the difference between transaction drivers and duration drivers. When could one type be preferred over the other?