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The managing Director of ITEKA thinks that today's indirect cost allocation is not satisfying. He thinks that a method based on ABC would be
The managing Director of ITEKA thinks that today's indirect cost allocation is not satisfying. He thinks that a method based on ABC would be more relevant. He has asked to the accountant to prepare a table with the activities' costs and the corresponding cost drivers Artvin Cas C Adv 25000 42500.00 batches 00000 300 2500 1290020 ste 450.00 140 200 21.000.00 notes QUESTIONS Using the template shown in exhibit and given in the excel table (ABC) 2-1. How much is the product P costing with ABC costing? How much is the new margin Answer 2-2. Did the manufacturing cost of P change in comparison with the fist method of indirect costs allocation? Why? Answer: 2-3 Please comment the reasons why the margin of P has changed with the ABC method Answer 24 Athenew controller of the company, you are in charge of reviewing the ABC model. For each activity do you agree with the proposed cost driver /? You can use the table below and put a cross into the right column. If no, what is the new cost driver you would propose? Please angue. You can write your answer after the table proposed f t
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