Questions:

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2.1 Calculate the cost per kg per product according to the absorption costing method. (4)

2.2 Which is the most profitable and least profitable product, according to the absorption costing

method? (2)

2.3 Calculate the cost per kg per product according to the ABC costing method. (6)

2.4 Which is the most profitable and least profitable product, according to the ABC costing method?

(2)

2.5 Which two costs had the biggest influence in determining the cost and profit per product? (2)

2.6Why is 'activity based costing' seen as a better method in determining the costs of products? (2)