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6. Activity-based costing seems to provide the company with more accurate cost information compared to traditional absorption costing. Provide a detail explanation regarding the five

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6. Activity-based costing seems to provide the company with more accurate cost information compared to traditional absorption costing. Provide a detail explanation regarding the five limitations in implementing activity-based costing system. (7 12 Marks) 7. Please comment on the issue raised by the Plant Manager to discontinue supplying Silver circuit board. Specifically comment on the pricing and product mix decisions. (3 Marks) 8. Overall, what recommendations would you propose to the company regarding contract renewal? (3 marks) 4

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