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Question 5 (10 Marks) A. Mr. Zakariya the new junior cost accountant joined your company and wants to follow 'Absorption costing', but you as a
Question 5 (10 Marks) A. Mr. Zakariya the new junior cost accountant joined your company and wants to follow 'Absorption costing', but you as a senior cost manager rely on Marginal costing'. How would you convince Mr. Zakariya in this situation? Explain. B. Use the below numerical figures of your company's production unit along with the theoretical aspects during the convincing process to Mr. Zakariya about marginal costing. Particulars Products A B OMR OMR OMR 30,000 120,000 12,000 Direct material Direct wages 36,000 36,000 6,000 Factory overheads: Fixed Variable 12,000 15,600 6,000 6,000 36,000 18,000 Selling overheads: Fixed Variable 6,000 8,400 3,600 2,400 24,000 12,000 Sales 128,000 204,000 64,000 End of Question paper 4
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