Question
Peita and her team are working on designing and using the new costing system based on the principles of ABC. As you are helping them
Peita and her team are working on designing and using the new costing system based on the principles of ABC. As you are helping them in designing this new costing system, you are required to:
(i) Describe in detail the elements of this new costing system and explain/justify the activity cost pools and activity cost drivers utilised by the company.
(ii) Determine the conversion cost per bottle for each of the Naturisan bottle sizes (Small, Medium and Pump) by preparing a bill of activities for each size. Please show detailed calculations.
https://gyazo.com/d7862fc6423ad65a3cc66c6fb00111b6 Figure 1
https://gyazo.com/94ea1ffbddb12ae624550f96da9c6c3e Figure 2
https://gyazo.com/3715035b80bd02afd590117907e17676 Figure 3
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