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Styles Voice Sensitivity Question 1 (25 marks) Part 1. KangaAdventure is a tour operator and travel company in Australia and New Zealand. The company's general director Lawrence has worried about the increasing operating costs and accuracy of their current costing practice. The company has accumulated costs of different major services for each tour and used proportion to the actual sales revenue to allocate overhead costs to each tour program. Suppose that you are working as a management accountant at KangaAdventure. Required You are asked by Lawrence to analyse the current costing practice and advise how it can be improved to provide accurate and reliable cost estimates. Evaluate possible costing approaches for service providers, such as KangaAdventure, and explain how service costing could help the company manage its business. (10 marks] Click or tap here to enter text. Part 2. David works for Woolgarments Company as a production manager. He often participates in the annual budgeting process of the company. David is requested by the Chief Executive Officer Linda to submit his department's budgeted production for the following year. Linda reviews and typically adds 10 percent to the production budget provided by David. The new amount becomes David's target production level for the following year. David can receive a cash bonus if his department exceeds the projected production level. Required: a. Explain any incentive that David might have to be dishonest with Linda about the production level he thinks the department can achieve. (5 marks/ b. Explain the impact David's inaccurate production estimates could have on other company departments or employees. (5 marks] Focus 16'C Mostly cloudy