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High Tech Manufacturing has four departments: the Factory Machinery Maintenance (FMM) department, the Marketing department, the Hardware department and the Furniture department. The Hardware department
High Tech Manufacturing has four departments: the Factory Machinery Maintenance (FMM) department, the Marketing department, the Hardware department and the Furniture department. The Hardware department produces computer hardware while the Furniture department produces furniture specifically designed for use with computers. FMM's cost is allocated based on number of times factory machinery maintenance services are performed. The Marketing department's cost is allocated based on the number of marketing campaigns undertaken to sell products produced by the Hardware and Furniture departments, The following information has been provided by the company: FMM Hardware Furniture Marketing $400,000 $500,000 $5,000,000 $3,000,000 12 8 Budgeted costs Number of machine maintenance services Number of marketing campaigns undertaken 3 The amount of FMM's costs that should be allocated Hardware is closest to: $300,000 $500,000 $540,000 $316,000 Insufficient information to calculate amount Which of the following statements about structural cost management are likely to be true? 1. It consists of decisions that can have a significant impact on an organisation's cost 2. It employs tools to evaluate the performance of the firm's supply chain 3. It includes tools such as activity-based costing and customer profitability analysis O Statement 1 only Statement 2 only O Statement 3 only O Statement 2 and 3 only Statement 1, 2 and 3
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