Question: i. Explain in brief a. Activity-Based Costing b. Activity-Based Management (05 marks for each = 10 marks) ii. Toys for Kid is considering purchasing

i. Explain in brief a. Activity-Based Costing b. Activity-Based Management (05 marks

i. Explain in brief a. Activity-Based Costing b. Activity-Based Management (05 marks for each = 10 marks) ii. Toys for Kid is considering purchasing a robot to apply shrink wrap packaging to some of its products. The robot will cost Rs 10 million and will produce annual labour and quality cost savings of Rs. 3 million. The robot is expected to last 5 years and have no salvage value. Required to calculate. a. Payback period (02 marks) b. Accounting rate of return (03 marks) c. If Toys for kid discount rate is 10 percent, what is the net present value. (05 marks) d. Using a 10 percent discount rate, what is the profitability index e. State recommendation (02 marks) (03 marks)

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