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QUESTION 1 a) Contrast an FIVE (5) differences between process costing and job costing. (15 marks) b) ABC Limited uses 50,000 units of a component. The cost is $2.50 per component. The ordering cost per order is $160 while holding cost is $12 per unit. The normal quantity that is ordered is 8,000 per order but the Managing Director thinks too much money is locked up in stocks. REQUIRED: Clarify the EOQ of the company from the information provided. Advice the Managing Director on the best possible decision. (10 marks)