Review Questions List and explain four purposes of product costing. Explain the difference between job-order and process costing. How is the concept of product costing applied in ser- vice industry firms? What are the purposes of the following documents: (a) material requisition form, (b) labor time record, and (c) job-cost record. 3-1. 3-2. 3-3. 3-4. 3-5. Why is manufacturing overhead applied to prod- ucts when product costs are used in making pricing decisions? 3-6. Explain the benefits of using a predetermined overhead 3-7. Describe one advantage and one disadvantage of prorat- 3-8. Describe an important cost-benefit issue involving 3-9. Explain the difference between actual and normal 3-10. When a single, volume-based cost driver (or activity rate instead of an actual overhead rate. ing overapplied or underapplied overhead. accuracy versus timeliness in accounting for overhead. 3. costing. 3- base) is used to apply manufacturing overhead, what is the managerial accountant's primary objective in select- ing the cost driver? Describe some costs and benefits of using multiple overhead rates instead of a plantwide overhead rate. Describe the process of two-stage cost allocation in the development of departmental overhead rates. 3-i 3-11. 3-2 3-12