question archive Comparison of acttvlty-based and traditional product costs: manufacturer Paris Fashions Ltd has switched from a traditional product costing system to an activity—based product costing system to assign manufacturing overhead costs to products
Comparison of acttvlty-based and traditional product costs: manufacturer Paris Fashions Ltd has switched from a traditional product costing system to an activity—based product costing system to assign manufacturing overhead costs to products
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Comparison of acttvlty-based and traditional product costs: manufacturer Paris Fashions Ltd has switched from a traditional product costing system to an activity—based product costing system to assign manufacturing overhead costs to products. The table below shows the cost per unit of two products from its winter range under the two costing systems: Costing system Sweater Overcoat Traditions] $39 $23 ABC $3 3 $30 Required: 1. Describe the most likely features of Paris Fashions' sweater and overcoat products by replacing the question marks in the following table with 'Yes' or 'No', Product feature Sweater Overcoat High-volume product line ? ? Low-volume product line 1' T Produced in small batches it ? Produced in large batches '2' ? Simple lo produce '1' ? Complex to produce 5' 9 2. Explain your answers to requirement 1.
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