Question: 1. What is the difference between operating departments and service departments?
2. What is activity-based costing? What is its goal?
3. Identify at least four typical cost pools for activity-based costing in most organizations.
4. What company circumstances especially encourage use of activity-based costing?
5. What are two main goals in managerial accounting for reporting on and analyzing departments?
6. Is it possible to evaluate a cost center's profitability? Explain.