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QUESTION 5 Why do organisations allocate indirect costs (overheads) and how they go about determining the principles for allocating such costs? Discuss these issues with

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QUESTION 5 Why do organisations allocate indirect costs (overheads) and how they go about determining the principles for allocating such costs? Discuss these issues with reference to the purpose of cost allocations and the criteria for determining the ways in which indirect costs should be allocated. PLEASE NOTE THAT THERE IS A WORD LIMIT OF 750 WORDS FOR ANSWERING THIS QUESTION. (20 Marks) QUESTION 6 Describe how activity-based costing (ABC) can be used for the purpose of customer segmentation and what the advantages and disadvantages of using ABC for this purpose are compared to using traditional absorption costing for the same purpose. PLEASE NOTE THAT THERE IS A WORD LIMIT OF 750 WORDS FOR ANSWERING THIS QUESTION. (20 Marks) ( 19 tv 4 x W

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