Two (2) alternative costing systems dealing with computer systems costs.For each of your two (2) selected costing systems you need to explain:

oHow the computer costs will be allocated.

oThe capacity you recommend using to allocate the costs.

oHow any under or over allocated costs will be treated if this is a possibility in the costing system/approach you discuss.

A discussion of:

oThe impact each costing system should have on the allocation of costs and the Engineers decision on which computer system to use.

oHow each of your selected alternative costing systems addresses Colin's concerns and any disadvantages of the selected costing systems.

oYour recommendation on how to deal with computer systems costs- including a justification/explanation of your decision suitable for Colin (a non-accountant).

A clear statement of your recommendation on how to allocate the computer systems costs.

Note: your report must briefly describe the costing system you think the company is operating to contextualise the issue(s) with it.

The word limit for the assignment is 1,000 words. The word count excludes the title page and reference list but includes in-text reference details and appendices.Penalties may be applied to reports which exceed the word limit. If an assignment is not materially over the word limit and all material is relevant we will not apply a penalty but if it is materially over the word limit or includes irrelevant material or is not succinct while exceeding the word limit we will apply a penalty.

The short report is for a busy manager so needs to be as brief as possible while conveying the full information required on the stated issue.You need to carefully consider the information included and its organisation.