Do anyone know about Chokolate box case?

Abc costing Chokolate Box

Task 1 Today is the 1tt November 2019 and you receive the following email from Maria Webber, Finance Director: From: Maria Webber, Finance Director To: Finance Officer Sent: 1st November 2019 Subject: ABC Costing Hi FO, Yesterday, I received an email from Josephine Jerome, our sales \& marketing director - she is working on promotion and price points of our chocolates as we speak. Josephine wants to make sure our pricing is competitive and covers our costs - but we are both aware that our current method of overhead allocation is not the most sophisticated method and at the moment all product overheads are being allocated to product costs based on labour hours. It is important that in a competitive market, our costs need to be very precise so we can determine the correct selling prices of our products. Josephine has been reading about ABC costing. She thinks it sounds an appropriate method of reflecting the cost of overheads in our chocolates. I have included an example of average overhead activities relating to our two key ranges, the self-purchase and gift ranges. Please, can you create the first draft of a short briefing paper on this matter. It needs to include the following. - A description of ABC costing along with an assessment of how useful ABC will be to Chokolate Box. Please also let me know the likely effect on the cost of self-purchase and gift ranges based on the data given. Many Thanks Maria Webber Finance Director Task 1 Today is the 1tt November 2019 and you receive the following email from Maria Webber, Finance Director: From: Maria Webber, Finance Director To: Finance Officer Sent: 1st November 2019 Subject: ABC Costing Hi FO, Yesterday, I received an email from Josephine Jerome, our sales \& marketing director - she is working on promotion and price points of our chocolates as we speak. Josephine wants to make sure our pricing is competitive and covers our costs - but we are both aware that our current method of overhead allocation is not the most sophisticated method and at the moment all product overheads are being allocated to product costs based on labour hours. It is important that in a competitive market, our costs need to be very precise so we can determine the correct selling prices of our products. Josephine has been reading about ABC costing. She thinks it sounds an appropriate method of reflecting the cost of overheads in our chocolates. I have included an example of average overhead activities relating to our two key ranges, the self-purchase and gift ranges. Please, can you create the first draft of a short briefing paper on this matter. It needs to include the following. - A description of ABC costing along with an assessment of how useful ABC will be to Chokolate Box. Please also let me know the likely effect on the cost of self-purchase and gift ranges based on the data given. Many Thanks Maria Webber Finance Director