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?

3. 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 Activity Expense Number Supported 19008-001 Whole Life Series 2 Whole Life Series Update system to reflect 2012 changes $ 12,425 Update 2 in policy conditions 19008-002 Variable Life Series 2 Variable Life Update system to reflect 2012 changes 11,429 Update Series 2 in policy conditions 19008-003 Term Life New Term Life New Update system to reflect 2012 changes 13,152 Horizon Update Horizon in policy conditions 19008-004 Secure Life Project Secure Life System modifications for new secure life 101,444 Project product Total $ 138,450 Melissa requires to write a report of 1,600 words and ask you not to exceed this word limit. She is very busy and would prefer if you keep it short, concise and to-the-point. Therefore, this word limit includes everything - the only exceptions are the bibliography and appendices. Given her experience with writing and reading such reports, Melissa gives you the following tips to answer both Part A and Part B of the assignment: . Your feedback to her questions must be given with specific reference and applicability to the unique context of the company. Generic answers that could apply to any organisation or environment should not be included