Bovis Homes. See their annual report https://www.edocumentview.co.uk/bovishomes2012/2012/103621/default.htm?voting=false
1. Assess how Activity-Based Costing can contribute to enhancing shareholder wealth.
2. Provide a rationale for why Bovis Homes might need activity-based costing.
- Their products include Houses and Apartments.
- Their services include Surveying, Designing, Building and Selling Homes, Engineering, Acquisition and Residential Development of Land
- They have a huge operating expenses which could be due to the high cost operating model.
- They always aim for high margin by selling at a premium price.
1. Identify key elements that need to be covered in order to answer question 1. Then provide some brief explanations for each element.
2. Explain why Bovis Homes might need activity-based costing.
3. Provide guidance relating to typical activities, examples of cost pools and cost drivers, and the overheads for Housebuilding company like Bovis Homes.