The next 3 questions relate to the information provided below [11 Marks] The Big Consulting Company (BCC) has clients in all the major capital cities in Australia - Melbourne, Sydney, Brisbane, Perth, Adelaide and Canberra. BCC currently has 20 senior consultants and 30 junior consultants. BCC has offices in each of these cities (i.e., 6 offices) where its IT staff and administrative staff are based. The IT staff provide IT services to the consultants while the administrative staff provide administrative services to consultants (e.g., schedule meetings with clients and book their travel arrangements). BCC's consultants who are not on client projects also use the office. However on any given day, most of its consultants work from their respective client's office and hence do not use BCC's office. Each consulting project BCC undertakes varies significantly in terms of the cost they incur. The major cost items incurred by each project are as follows: - Consultant wage costs - IT-related costs (hardware, software, services) - Administrative services costs - Consultant travel costs. For consultants who do not live in the same city as their clients, BCC would pay for their hotel accommodation at the client location: flights back to their home city on Fridays: and flights to the client's location on Mondays. For example. if a consultant lives in Melbourne but works on a project for a client who is based in Sydney: BCC will pay for her accommodation in Sydney from Monday till Friday, the flight home to Melbourne on Friday and the retum flight to Sydney on Monday. Some of the other costs BCC incurs include the following office-related costs (non-exhaustive): - Office rent - Office utilities costs - Office cleaning costs Would Job Costing or Process Costing be more suitable for BCC? Explain. What are 3 distinct factors that affect the total consultant wage costs incurred by a project? Explain. BCC treats consultant travel costs as a direct cost (instead of an indirect cost) of each project. (a) How would BCC assign consultant travel cost to each project? [2 marks] (b) What are TWO possible reasons behind BCC's decision to treat consultant travel costs as a direct cost instead of an indirect cost? [2 + 2 marks] Please label your answers Part (a) and Part (b) separately and clearly The next 3 questions relate to the information provided below [11 Marks] The Big Consulting Company (BCC) has clients in all the major capital cities in Australia - Melbourne, Sydney, Brisbane, Perth, Adelaide and Canberra. BCC currently has 20 senior consultants and 30 junior consultants. BCC has offices in each of these cities (i.e., 6 offices) where its IT staff and administrative staff are based. The IT staff provide IT services to the consultants while the administrative staff provide administrative services to consultants (e.g., schedule meetings with clients and book their travel arrangements). BCC's consultants who are not on client projects also use the office. However on any given day, most of its consultants work from their respective client's office and hence do not use BCC's office. Each consulting project BCC undertakes varies significantly in terms of the cost they incur. The major cost items incurred by each project are as follows: - Consultant wage costs - IT-related costs (hardware, software, services) - Administrative services costs - Consultant travel costs. For consultants who do not live in the same city as their clients, BCC would pay for their hotel accommodation at the client location: flights back to their home city on Fridays: and flights to the client's location on Mondays. For example. if a consultant lives in Melbourne but works on a project for a client who is based in Sydney: BCC will pay for her accommodation in Sydney from Monday till Friday, the flight home to Melbourne on Friday and the retum flight to Sydney on Monday. Some of the other costs BCC incurs include the following office-related costs (non-exhaustive): - Office rent - Office utilities costs - Office cleaning costs Would Job Costing or Process Costing be more suitable for BCC? Explain. What are 3 distinct factors that affect the total consultant wage costs incurred by a project? Explain. BCC treats consultant travel costs as a direct cost (instead of an indirect cost) of each project. (a) How would BCC assign consultant travel cost to each project? [2 marks] (b) What are TWO possible reasons behind BCC's decision to treat consultant travel costs as a direct cost instead of an indirect cost? [2 + 2 marks] Please label your answers Part (a) and Part (b) separately and clearly