(a) Explain briefly the three main elements of strategic costs management. [6 marks] [b) What are the major characteristics of modern businesses that necessitate the introduction of a strategic cost management system? [6 marks] (c) What is supply chain analysis and how can it benefit manufacturers and retailers? [4 marks d) Chandu Cables Lid. is a manufacturing company that makes only three products P, Q and R. Data for the period ended last month are as follows: P Q R Units produced 12,000 16,000 8,000 Sh. Sh. Sh. Sales price per unit 50 70 60 Direct material cost per unit 16 24 20 Direct labour cost per unit 8 12 8 Production overhead costs Total (Shs) Cost drivers Machining costs 102,000 Machine hours Production scheduling 84,000 No. of production runs Set-up costs 54,000 No. of production runs Quality control 49.200 No. of production runs Receiving materials 64,800 No. of production runs Packing materials 36,000 No. of production runs 390,000 Information on the cost drivers is given as follows: P Q R Direct labour hours per unit 1 1 Machine hours per unit 1 1 3 Number of components per unit 3 5 8 Number of component receipts 18 80 64 Number of customer orders 6 20 10 Number of production runs 6 16 8 Required: Using Activity Based Costing (ABC) show the cost and gross profit per unit for each product during the period. [14 marks] (e) Explain the advantages of using Value Added Statements (VAS) for interdivision comparisons in a decentralized firm. [4 marks]