Perform the overhead analysis using activity-based costing

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Reference no: EM131975649

Assessment Task - Individual Case Study

Required:

1) Perform overhead analysis systematically firstly based on traditional costing system. The overhead analysis under traditional costing system involves two-stage allocation process by assigning all manufacturing overheads to production and service cost centres, and followed by reallocating the costs assigned to service cost centres to production cost centres. Provide the calculations of the manufacturing costs assigned to the two products (Simple luggage and Complex luggage).

2) Perform again the overhead analysis using Activity-based costing (ABC) system. The overhead analysis under ABC system involves assigning costs to activity cost centres. Provide the calculations of the manufacturing costs assigned to the two products (Simple luggage and Complex luggage) based on ABC system.

3) Compare the product costs calculated under the traditional costing system and ABC system and explain the rationale behind the differences in product costs calculated under the two costing systems.

4) Analyse the cost versus benefit considerations in adopting ABC system in Happy Traveller Ltd.

5) Explain in details in what ways the ABC cost management can be applied in Happy Traveller Ltd besides assigning costs to its products.

Attachment:- Case Study.rar

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A very complicated and lengthy costing problem is solved. Costing has been done using traditional and ABC costing system. Financial model of the costing has been prepared on excel. Analysis has been written on word. The results of the two methods have been compared.

Reference no: EM131975649

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Reviews

len1975649

5/8/2018 8:16:32 AM

Conclusion 15% For Happy Traveller Ltd case, give answers for the above requirements 4) to 5) Requirement 4) Analysis the cost and benefit 10% Requirement 5) Apply ABC to the company 5% References 10% Provide a reference list here. You are expected to use journals and textbooks published after 2008. Cite references in Harvard referencing style.

len1975649

5/8/2018 8:16:25 AM

There are four sections in your report. Introduction 15% Explain the purpose of this report The significance of traditional costing systems and activity based costing Cite references to support your discussion in the section Discussion 60% For Happy Traveller Ltd case, show the workings of the above requirements 1) to 3) Requirement 1) traditional costing system 20% Requirement 2) ABC 30% Requirement 3) compare traditional costing system and ABC 10%

len1975649

5/8/2018 8:16:12 AM

As this assessment Task 2 is of individual basis, collaboration between students in the assignment is prohibited. Submission showing similar format of presentation in calculations among students may indicate presence of plagiarism and implicated students may have committed academic misconduct knowingly or unknowingly. Task 2 must: ? be typed using 1.5 lines spacing left justified. ? use Ariel or Times New Roman font size 12. ? Display a 2.5 cm margin on all sides.

len1975649

5/8/2018 8:16:07 AM

All assignments must be handed in on the due date. Late assignments will be penalised. Assignments submitted after the due will incur a 10% penalty of the maximum marks available for that assignment. Assignments received more than three calendar days after the due date will not be allocated a mark. Each student is to submit an individual assignment based on the given case below. The individual assignment should be around 900 words (numerical data as part of the calculations is not included in the word count). Please note that the topic of the case study is covered only in Week 8 (Chapter 8) and the due date of this assessment is in Week 11, 11PM). Student is expected to acquire the knowledge/ learn the topic of the case study on his / her own in advance of week eight, so that there is ample time for preparation of assessment Task 2.

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