(a)[3]
Calculate the cost per unit for each product by using absorption costing.
(b)[2]
Explain what the term ‘cost driver’ means.
(c)[5]
State two advantages and three disadvantages that ABC has.
(d)[8]
Calculate the cost per unit for each product if ABC is adopted.
(e(i))[2]
Calculate the selling price of each product by using absorption costing.
(e(ii))[2]
Calculate the selling price of each product by using ABC.
(e(iii))[3]
Explain, using suitable calculations, why your responses in (i) and (ii) are different.