1.The CEO, Luis Franco, and the financial controller, Arthur Batten, are currently evaluating the usefulness of Activity based costing (ABC). Provide an argument for and against the benefits of ABC. The arguments must be backed up by peer review journals and articles from the CPA/CA journals only.
2.Luis Franco is concerned that his manufacturing manager Julius Frino is not familiar with the Industrial award that should be used for his staff. Find an appropriate award and provide a summary of the hourly wages/weekly wages and associated penalties inclusion overtime.
3.Discuss the results of sensitivity analysis of the changes in the selling prices (Casual and Deluxe type) and costs of raw materials (XX and YY) have on the operating income of Stylish Ltd. The workings as well as the master budget (operating budget) needed for Stylish Ltd should be included at the back of the assignment as appendix and excluded in the word count.
4.Suggest what might be done to solve the problem or improve the situation of Frank Morton.