Question
Scenario Dysonica is a successful international innovative company based originally in the UK but now operates internationally. It has its products available on the high
Scenario
Dysonica is a successful international innovative company based originally in the UK but now operates internationally. It has its products available on the high street as well as selling online. Increased competition has led to many cost-cutting decisions, resulting in manufacturing being moved from the UK.
Task
You work for the company as a trainee management accountant and have been asked to examine the following cost information to classify it according to its behaviour to identify variable costs, fixed costs or semi-variable cost.
Raw materials 15,000
Machinery 1500 per month
Factory and storage rent 18,000 per month
Direct labour 17,500 per month
Utilities 500 per month
Office and sales staff 9,000 per month
Insurance 500 per month
Logistics 3,000 per month
There are three main methods of attributing indirect costs to production units - absorption costing, marginal costing, and activity-based costing (ABC). Use examples to illustrate your answer in the calculation of unit costing using the information provided.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started