Table 4 shows the cost centres for the Life Insurance Projects functional centre and a description of the activities in each cost centre that make up that functional centre. Based on this information, is the proposed basis for allocating expenses for these cost centres accurate? Why? How could it be improved?

Table 4: Cost Level Data for Life Insurance Projects Function 19008 Life Insurance Projects Cost Center Cost Center Products Number Supported 19008-001 Whole Life Series 2 Whole Life Series Update 2 19008-002 Variable Life Series 2 Variable Life Update Series 2 19008-003 Term Life New Term Life New Horizon Update Horizon 19008-004 Secure Life Project Secure Life Project Total Activity Expense Update system to reflect 2012 changes 5 12,425 in policy conditions Update system to reflect 2012 changes 11,429 in policy conditions Update system to reflect 2012 changes 13,152 in policy conditions System modifications for new secure life 101,444 product 5 138,450