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Unformatted text preview: Rs.(48+30.82 ) =Rs 78.82 Q Rs ( 48+15.24 ) =Rs 63.24 Rs.(48+3.5 ) =Rs 51.54 R Rs ( 48+15.24 ) =Rs 63.24 Rs.(48+1.64 ) =Rs 49.64 ( B ) As a practice of the firm , for each unit the production as supplied to the three customers the cost of sales is uniform at Rs. 63.24 p.a., albeit their varying requirments of non -production services.Non-production ser-vice cost vary widely among the customers according to their relative demand for such services. As against the generalized view of the cost od sales under the usual method of distribution of non-production overheads followed by the Fairdeal, the ABC method of apportionment of the service costs reveals the cost of sales to different customers in realistic perspective and offers a better basis of pricing products for Fairdeal. The CEO's fear of non fair deal to customers warrants a closer view....
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This note was uploaded on 02/29/2012 for the course E 101 taught by Professor Sfere during the Spring '12 term at Abilene Christian University.
- Spring '12