Posted: January 8th, 2016

What is the unit cost of each type of product under Anna Lyst’s proposed ABC approach?

What is the unit cost of each type of product under Anna Lyst’s proposed ABC approach? II. How does this compare with the unit product costs under the company’s existing costing system? III. Show all calculations. (Note: In order to highlight how the company’s product costs are calculated under an ABC approach, you should include a diagram in your report similar that shown on the next page.) IV. Explain why the product costs under an ABC approach are different to that under the existing costing system. V. You should also present two statements of financial performance (profit statements): one based upon the existing costing system and the other under the proposed ABC system.
Show all calculations (16 marks).

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