(a) What are the differences in the product costs under the two product costing systems. Why do these differences occur?

(b) How is the viability of the respective products affected?

(c) Do the new product costs assist in explaining the current problems experienced by Pitcairn Electronics?

(d) Which system is best? ABC or traditional costing approaches? Why?

(e) What are the implications for the company of moving to an activity based costing system eg selling prices of goods, which good to focus on?

Answer rating: 100% (QA)

Costing is used in business accounting strategies as a way of determining the cost of manufacturing a product in relation to the revenue generated by that product Costing systems determine the overhea... View the full answer