Question 1 -
a- What are the advantages of Activity-Based Costing (ABC)?
b- What is the challenge of this system and how we can resolve it?
Question 2 - Suppose:
- Selling price 150 S.R per unit
- Variable costs 90 S.R per unit
- Fixed costs 600,000 S.R (TOTAL)
Required:
1. What is the beak-even-point?
2. What is the selling price, if break - even point is 12000 units?