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Answer to question 1:
a) In recent years, there has been change in quality and number of competitors that has the consequence of reducing cost margin year on year making it essential to control the cost.A greater control of costs is generated by the implementation of activity based costing systemthat results in better forecasting of forecasting by increasing the competitiveness. The main focus of activity based costing is on ...
In the present era, the production process of multiple products in manufacturing companies is supported by various activities and department due to which it is not feasible to allocate overhead as per the single rate (Oseifuah, 2018). Therefore, traditional costing is not suitable as it leads to a wrong decision regarding cost consumption and profit generation for individual product or departments. By considering this as...
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Corporate governance is composed of a set of rules that organizations apply in directing their decisions and justify their steps. Governance is a combination of contracts that assist align the interest of the shareholders to that of the managers. It is the foundation through which firms evaluate and go after their targets within the legal, market and social environment. Considering that the primary role of accounting is t...
Corporate governance has the management of the company to manage and control the operations. It has the company to know about the shareholders desires and tries to fulfil them. Corporate governance can also be defined as a group of processes policies and certain laws that affect the company in which they are directed. The core component of the corporate governance is financial reporting. Financial reporting helps the stakeholder asses...
Financial Reporting is required under the IFRS and other standards issued to make sure the stakeholders get the real and correct information regarding the financial operations of the company in a specific period as they need to take decisions based on the same. different stakeholders have different needs. For example, shareholders of a company are more concerned about the returns they get and they would more like to know t...
Answer - 1
Allocation of overhead cost on a factory wide approach
[$960000 in 18:42]
Overhead rate computation
Direct labour Hours(B)
Statement presenting allocation of total overhead costs(factory-wide approach)
[$960000 in 18:42]
Calculation of overhead rate
Direct labour Hours(B)
(As per Traditional Costing)
Total Direct Labor Costs
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