QUESTION $4$

A$.$ The limitations of the Traditional Costing System is believed to have been resolved by the introduction of Activity Bases Costing;

Briefly:

$($i$)$ State the merits of the ABC system

$($ii$)$ Explain the limitations of the Traditional Costing System

B$.$ For the purpose of Control, responsibility centers may be grouped into three;

$($i$)$ Cost Center

$($ii$)$ Profit Center

$($iii$)$ Investment Center

Required:

Briefly explain these concepts and state how divisional managers could be evaluated under each concept.

C$.$ Discuss the following terms as they relate to Cost $-$ Volume $$ Profit $($CVP$)$ analysis

$($i$)$ Relevant Range

$($ii$)$ Contribution

$($iii$)$ Break $$ even Point

$($iv$)$ Margin of Safety

D$.$ Describe the role of the Management Accountant in a manufacturing organization.