Answer the following three (3) questions:-

(i) The authors argued that Initially, managers viewed the ABC approach as a more accurate way of calculating product costs. But ABC has emerged as a tremendously useful guide to management action that can translate directly into higher profits. Discuss. [40 marks].

(ii) Describe the Hierarchy of Factory Operating Expenses.

(iii) Explain how the manager can use ABC to analyse a companys operation beyond factory.