As the course instructor of the course of Managerial Accounting, you discussed the issues related to cost accounting with your students. After the first class, your students raised the following questions.

Required:

a. Companies implements cost accounting, particularly from the perspectives of the value (supply) in improving their customer profitability. We do not agree with the statement that cost accounting distorts product costs. Discuss THREE (3) factors that result in successful delivery from the initial acquisitions of materials, labor and factor overhead to the sales of products and/or services to customers. (6 marks)

b. After discussing introduction to cost accounting with your students, one of them asked you about electrical costs (utilities expenses). Explain in TWO (2) points regarding electrical costs (utilities expenses), which is an example that you gave them about factory overhead, from the perspective of cost behavior. (4 marks)