ACCA/CAT

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Financial and other information for Robust Laptops

Robust Laptops

Data for the year ended 30 September 2010

Required:

Write a report to the CEO to include:

(a)An evaluation of the current method of costing against an Activity Based Costing(ABC)system.You should provide illustrative calculations using the information provided on costs for 2010 and Order 11784.Briefly state what action management might take in the light of your results with respect to this order.(15 marks)

(b)An explanation of the operation of a beyond budgeting approach and an evaluation of the potential of such a change at RL.(10 marks)

Professional marks will be awarded in Question 2 for appropriateness of format,style and structure of the report.(4 marks)

(29 marks)

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