Question: 3 . Based on the calculations in Tab 3 using ABC, comment on the operating profits made for each product. Explain in your report why

3 .

Based on the calculations in Tab

3

using ABC, comment on the operating profits made for each product. Explain in your report why operating profits have changed under ABC analysis. Also indicate which of the systems

that is the traditional systems

(

using lumpsum or volume

-

based cost allocation in Tab

1

and Tab

2)

or the ABC systems,

(

Tab

3)

provide the best answers for decision making to improve cost management in order to improve operating profit.

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