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Question 3. Theory Questions A. Differentiate between Functional based Costing and Activity based costing B. What are the weaknesses of Functional based costing? C. Give

Question 3.

Theory Questions

A. Differentiate between Functional based Costing and Activity based costing

B. What are the weaknesses of Functional based costing?

C. Give two examples of unit level drivers and two examples of non-unit level drivers and give a brief explanation for each.

D. Mention three assumptions of CVP analysis

E. Explain what the following measures indicate to the managers:

i. Margin of Satety

ii. Degree of Operating Leverage

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