No images, except excel output. Do plz only question 4 & 5

John and Richard perform consulting services related to e-commerce and information systems, in Sydney. The firm, which bills $185.00 per hour for services performed, is in a very tight local labour market and is having difficulty finding quality staff . The labour cost per hour paid by John and Richard for professional staff time is $65.00. Selected information follows: (a) Billable hours to clients for the year totalled 6,000, consisting of: information systems services, 3,600; e- commerce, 2,400 (b) Administrative costs of $550,000 was (and continues to be) allocated to both consulting services based on billable hours. These costs consist of staff support, $280,000; in-house computing. $220,000; and miscellaneous office charges, $50,000 A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. The following table shows the number of clients, computer hours and client transactions for the e-commerce and information systems consulting services: e-commerce consulting Information systems consulting Total Number of clients 50 250 Number of computer hours 1,800 2,600 4,400 Number of client transactions 600 400 1,000 200 Required: 1. The contemporary management accounting method, Activity-based costing (ABC) is deemed as the improvement of costing accuracy when compared with traditional costing procedures. Critically discuss how the ABC method can improve costing accuracy and the contemporary and future development trends in management accounting (2 marks) 4. Richard, one of the firm's partners, doesn't care where his professionals spend their time because, as he notes, 'Many clients have come to expect both services and we need both to stay in business. Also, information systems and e-commerce professionals are paid the same hourly rate'. Should Richard's attitude change? Explain. (2 marks) 5. Is an aggressive expansion of either consulting service desirable? Briefly discuss (1 marks)