1. options are: pricing , purchasing, staffing

2. options:overstates, understates,

3 overstates, understates

Casey Assodiates is a recenty formed inw partnership. Elley Hanley, the managing partner of Cascy Associates, has juat fnithed a tense phore cal with Marin Orfah, prewifant of Widres Coal. pleased with both the qualty of the work and the prioe charged on its most recent job. Casey Assooleles eperates at copecily and uset a cont-based approbch to pricing (Blitiog) aesh job. Currenty, it uses a simple costing syssem with a single direct covt calegory (protesvionul labour hours) and a single indirect-cest pod (genaral suppod). indrect costs ave aloeated to cates on the buais of prolestional labour-hours per case. The job fles show the following Professional labour costs at Casey Associates are 685 an hour. Indirect costs are aliocaled to cases at 6110 an heur Tetal indrect costs in fee most recent peciod were C24. T50 Requirements 1. Why is it important for Casey Aswociates to undertand the costs associated with ndividual jobs? 2. Compule the costs of the Widnes Coal and St. Heleris Claus pobs using Caseys simple costing system. Requirement 1. Why is it important for Casey Associates to undertand the coots associated with indvisual jobs? decisions at Casey Associates are heavly influonoed by reported cost numbers, Suppose Casey is bidding against anoher fim lor a clect wath a job simiar to that of Widnes Coal. it the costing system the cotts of these jobs, Casey may bid too high and fall to land bee cilent it the conting syalam the costs of these jees, Casey isay bid low, und the client, and then lose money in handing the case