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Deliveries Movements Production runs Quality tests Activity Volume 670 315 720 470 Cost per activity unit =11.5k/670 = 17 =5k/315 = 16 =12k/720 = 17

Deliveries Movements Production runs Quality tests
Activity Volume 670 315 720 470
Cost per activity unit

=11.5k/670

= 17

=5k/315

= 16

=12k/720

= 17

=8k/470

= 17

Question - Write a note to the production department staff of Zeta Ltd to convince them that ABB, while superior to their previous approach, may not be the most appropriate way forward for the company. You need to specifically refer to the cost per activity unit you calculated in a) above to reinforce your argument. (10 marks)

I am stuck on how to relate the cost per activity unit to the question.

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