In August 2015, one of the main clients, Dato' R asked the company to organise a...
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In August 2015, one of the main clients, Dato' R asked the company to organise a function. The related information of the function is as follows: Guests No. of tables Number of cooking Number of purchases Cooking material Labour rate Number of workers Required: a. b. C. Compute: i. ii. 500 guests 50 tables 5 times 1 time RM40 per guest RM30 per worker 10 workers Cost driver rate for each activity using Activity-Based Costing (ABC) system. (2 marks) Cost per guest for the function. (6 marks) Discuss two (2) main differences between traditional costing system and ABC. (3 marks) Justify the reason why the company should switch from traditional costing system to ABC. (2 marks) (Total: 35 marks) In August 2015, one of the main clients, Dato' R asked the company to organise a function. The related information of the function is as follows: Guests No. of tables Number of cooking Number of purchases Cooking material Labour rate Number of workers Required: a. b. C. Compute: i. ii. 500 guests 50 tables 5 times 1 time RM40 per guest RM30 per worker 10 workers Cost driver rate for each activity using Activity-Based Costing (ABC) system. (2 marks) Cost per guest for the function. (6 marks) Discuss two (2) main differences between traditional costing system and ABC. (3 marks) Justify the reason why the company should switch from traditional costing system to ABC. (2 marks) (Total: 35 marks)
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To compute the cost driver rate for each activity using ActivityBased Costing ABC system we need to first identify the activities involved in organizi... View the full answer
Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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