(a)[8]
Set out a statement to work out the selling price per unit for Product S and Product P. The statement must also display the total cost per unit for each product.
(b)[3]
Explain the meaning of the term "activity based costing".
(c)[9]
Prepare a statement to work out the selling price per unit for Product S and Product P by applying activity based costing. The statement should also show the total cost and total cost per unit for each product separately.
(d)[5]
Advise the directors on whether they should adopt activity based costing or not. Support your judgement with reference to (a) and (c).