Assignment 2

Question 1

The data in the table below has been extracted from the management accounts of two divisions of a decentralised manufacturing company. Product X is made in division A which sells it both externally and to division B. The standard cost of producing product X is N$16 per unit. The average price at which division A sell X externally is N$24, on which it incurs selling costs of N$2 per unit. The data in the table below has been extracted from the management accounts of two divisions of a decentralised manufacturing company. Product X is made in division A which sells it both externally and to division B. The standard cost of producing product X is N$16 per unit. The average price at which division A sell X externally is N$24, on which it incurs selling costs of N$2 per unit