Question: Intermediate (20 marks; 36 minutes) SOURCE: ADAPTED FROM CIMA P1 F Ltd supplies pharmaceutical drugs to drug stores. Although the company makes a satisfactory return,

Intermediate (20 marks; 36 minutes)

SOURCE: ADAPTED FROM CIMA P1 F Ltd supplies pharmaceutical drugs to drug stores. Although the company makes a satisfactory return, the directors are concerned that some orders are protable and others are not. The management has decided to investigate a new budgeting system using activitybased costing principles to ensure that all orders they accept are making a prot.

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