{"id":21849,"date":"2024-04-17T19:07:32","date_gmt":"2024-04-17T19:07:32","guid":{"rendered":"https:\/\/www.writemyessays.app\/blog\/questions\/businesses-should-ensure-they-price-their-goods-and-services-reasonably-to-retain-competitive-advantage-an-accurate-method-of-costing-is-important-as-it-can-assist-a-business-to-determine-a-fair-pric\/"},"modified":"2024-04-17T19:07:32","modified_gmt":"2024-04-17T19:07:32","slug":"businesses-should-ensure-they-price-their-goods-and-services-reasonably-to-retain-competitive-advantage-an-accurate-method-of-costing-is-important-as-it-can-assist-a-business-to-determine-a-fair-pric","status":"publish","type":"questions","link":"https:\/\/www.writemyessays.app\/blog\/questions\/businesses-should-ensure-they-price-their-goods-and-services-reasonably-to-retain-competitive-advantage-an-accurate-method-of-costing-is-important-as-it-can-assist-a-business-to-determine-a-fair-pric\/","title":{"rendered":"Businesses should ensure they price their goods and services reasonably to retain competitive advantage. An accurate method of costing is important as it can assist a business to determine a fair price for their final product."},"content":{"rendered":"

Assignment Question<\/span><\/h4>\n

Businesses should ensure they price their goods and services reasonably to retain competitive advantage. An accurate method of costing is important as it can assist a business to determine a fair price for their final product.<\/p>\n

With the above in mind, the CEO of GoGo Airlines has provided you with the following information:<\/p>\n

Total Overheads = \u00a3200,000<\/p>\n

Total Machine Hours = 100,000 <\/p>\n

\n\n\n\n\n\n\n\n
Product:<\/span><\/td>\nVegan Meal:<\/span><\/td>\nNon-vegan Meal:<\/span><\/td>\n<\/tr>\n
\n

Units of Production<\/p>\n<\/td>\n

\n

300,000<\/p>\n

\n<\/td>\n

450,000<\/td>\n<\/tr>\n
\n

Material Cost per meal<\/p>\n<\/td>\n

\n

\u00a310<\/p>\n<\/td>\n

\u00a312<\/td>\n<\/tr>\n
\n

Labour Cost per meal<\/p>\n<\/td>\n

\n

\u00a38<\/p>\n<\/td>\n

\u00a310<\/td>\n<\/tr>\n
\n

Machine Hours per meal<\/p>\n<\/td>\n

1\/30<\/td>\n1\/5<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

\n

\n

\n

\n

\n

\n

\n

\n

\n

\n\n\n\n\n\n\n
 <\/span><\/td>\n% Overheads<\/span><\/td>\n<\/tr>\n
\n

Set-up Costs<\/p>\n<\/td>\n

\n

20<\/p>\n<\/td>\n<\/tr>\n

\n

Inspections<\/p>\n<\/td>\n

\n

60<\/p>\n<\/td>\n<\/tr>\n

\n

Delivery costs<\/p>\n<\/td>\n

\n

20<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

\n

\n

\n

\n

\n

\n

\n

\n\n\n\n\n\n\n
 <\/span><\/td>\nVegan Meal:<\/span><\/td>\nNon-vegan Meal:<\/span><\/td>\nTotal:<\/span><\/td>\n<\/tr>\n
\n

Set ups<\/p>\n<\/td>\n

\n

100<\/p>\n<\/td>\n

500<\/td>\n600<\/td>\n<\/tr>\n
\n

Inspections<\/p>\n<\/td>\n

\n

500<\/p>\n<\/td>\n

200<\/td>\n700<\/td>\n<\/tr>\n
\n

No. of Deliveries<\/p>\n<\/td>\n

\n

400<\/p>\n<\/td>\n

800<\/td>\n1200<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

\n

\n

\n

\n

\n

\n

\n

You are required to calculate the unit costs of the vegan and non-vegan meals using:<\/p>\n

    \n
  • Traditional costing using machine hours as the basis of allocation of costs and<\/li>\n
  • ABC system<\/li>\n<\/ul>\n

    In addition, you are also required to:<\/p>\n

      \n
    • Discuss the importance of accurate costing in supporting the financial decision process<\/li>\n
    • Compare the traditional costing system to the ABC system and<\/li>\n
    • Recommend, with reasons, which of the two costing systems is most appropriate for the airline sector<\/li>\n<\/ul>\n

      This is an essay-style question with a word count range of 1500 \u2013 2000 words.  <\/p>\n

      The learning outcomes for this assignment are:<\/h4>\n
        \n
      • Apply established management accounting techniques to a variety of decision-making problems<\/li>\n
      • Utilise a variety of management accounting techniques to interpret and evaluate a variety of business situations<\/li>\n<\/ul>\n



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        Assignment Question Businesses should ensure they price their goods and services reasonably to retain competitive advantage. An accurate method of costing is important as it can assist a business to determine a fair price for their final product. With the above in mind, the CEO of GoGo Airlines has provided you with the following information: […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"closed","template":"","meta":[],"disciplines":[9],"paper_types":[],"tagged":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/21849"}],"collection":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions"}],"about":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/types\/questions"}],"author":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/comments?post=21849"}],"version-history":[{"count":0,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/questions\/21849\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/media?parent=21849"}],"wp:term":[{"taxonomy":"disciplines","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/disciplines?post=21849"},{"taxonomy":"paper_types","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/paper_types?post=21849"},{"taxonomy":"tagged","embeddable":true,"href":"https:\/\/www.writemyessays.app\/blog\/wp-json\/wp\/v2\/tagged?post=21849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}