(a)[1]
State the term for the factor that brings about a change in the cost of an activity.
(b)[11]
Fill in the table to work out the total profit earned during the month by Product A and by Product B. Apportion the administration and distribution costs according to the number of units sold.
(c)[6]
Calculate the total profit earned during the month by Product A and by Product B if the administration and distribution costs are allocated on the basis of sales value. Begin from your answer to (b).
(d)[2]
Suggest two different bases that LT plc could use to apportion administration and distribution costs, other than sales units and sales value.
(e)[5]
Advise the directors whether a fixed mark-up on total cost should be applied or not. Support your view with reasons.