(a)[8]
Prepare a statement showing the selling price per unit for Product S and Product P. The statement should also include the total cost per unit for each product.
(b)[3]
Explain what the term ‘activity based costing’ means.
(c)[9]
Prepare a statement showing the selling price per unit for Product S and Product P by using activity based costing. The statement should also show separately the total cost and total cost per unit for each product.
(d)[5]
Advise the directors whether they should adopt activity based costing or not. Support your answer by referring to (a) and (c).