Question 1: What is activity-based costing? What are some of the key elements of activity-based costing? How does this method differ from a more traditional costing method?
Question 2: What are cost drivers? How do cost drivers relate to cost pools? What are some cost pools? Name two or three different cost drivers of these cost pools. What is the importance of cost pools?
Question 3: What are value-added processes? How do you determine if a process adds value? How does identification of value-added processes help a company run more efficiently and effectively?