a. Assume you are the new global manager for Continental Cruise Ltd, which sails to popular European and Asian cities. You receive the quarterly profit and loss statement reports and notice that it is similar to the financial performance reports for external users.

Required:

1. What additional information would you require? (4 marks)
2. Suggest a financial performance report format that would provide you with some of the information required in (i) (1 mark)\

b. Fashion Bags incurs these costs for the month:

Research costs $3 000

Leather material used $5 000

Depreciation on production equipment $1 000

Shipping costs for goods shipped to a customer $ 200

Repairs and maintenance on office building $1 500

Glue, pins, threads $ 300

Wages for assembly line workers $6 000

Commissions paid to salespeople $1 800

Required:

Determine each of the following costs: (list the costs under each cost category when calculating the answer).

i. Product costs - 1 Mark

ii. Period costs - 1 Mark

SHOW YOUR WORKING

Response Box