Question
All-Your-Cars Ltd is a multinational company that produces and sells spare parts for the automotive industry. The traditional costing system used by the company is
All-Your-Cars Ltd is a multinational company that produces and sells spare parts for the automotive industry. The traditional costing system used by the company is based on number of units for charging overheads to products, and the CEO thinks that this could lead to poor pricing decisions, considering the different level of complexity of the three main lines of production. Recent improvements in the accounting information system, however, now allow the CEO to gather the information needed to improve pricing decisions. The information that follows are related to the old and the new system
Selected data from the old information system (year 2019):
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