ACC204 Management Accounting- three cost objects of interest

ACC204 Management Accounting- three cost objects of interest


You are required to consider the case study provided and write an executive report using Power Point. Your report should be set out in an appropriate format under the following headings:

1. Executive summary – one page – an overview of the important issues and their background, and providing a summary of your findings.

2. Analysis – details of the analysis undertake and the results. All calculations should be shown.

3. Findings – detail and justify your findings from the analysis. Take care to recognise and describe any limitations.

4. Action items/limitations – detail the limitations from the analysis. Identify potential areas for actions to be undertaken by the organisation

Prepare an Executive Report to advise the Director on the results of an analysis of the costing system and the introduction of an ABC system. Your report should include the following:

1. Show how you identified cost pools and assigned costs to them, considering the three cost objects of interest.

2. How did you determine a cost driver for each cost pool and explain your choice.

3. Calculate the allocation rates for each cost pool and cost driver. Interpret the allocation rate for each cost pool (i.e., explain what it means). 

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