We need power point presentation about this task including some examples ( this is in UK) so please note the differences between UK and USA
TASK 1
You have started work as a manager at a local privately owned company. It has a board of directors comprising: a sales/marketing director, a production director, a purchase director, and a HR/IT director. They do not at present have a finance director, this role being undertaken by the managing director of the company.
Until recently they have used marginal costing as a way of costing their products but their managing director has just finished a course of financial management and wants to know more about absorption and activity based costing.
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What is the basis of absorption and activity based costing?
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What are the similarities/differences between the two?
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What are the advantages/disadvantages of the two methods?
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In what circumstances would each method be most appropriate?
(Total marks available for this task: 50. Word count equivalent of 500 words +/- 10%.)
TASK 2
Pleased with the advice you have offered him on costing choices he asks you to return to complete a second presentation on standard costing. He indicates that he wants you to explain the following:
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What is standard costing and how would you calculate the standard cost of a single product?
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How can standard costing enhance the information available to a company with which to make strategic decision?
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What is a variance and how is it measured for direct labour and direct materials?
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What may be the possible reasons for variances for labour and materials and how may these variances be mitigated in the future?
(Total marks available for this task: 50. Word count equivalent of 500 words +/- 10%)
