Question 3: The difference in figures is due to the effects of transition costs and its general effects in products. The company changes based on production of the new product has large quantity of overheads. Computer systems and support expenses. The overheads to the new production of pens are significantly expensive as accordance to the ABC model, which is the true reflection of the determination of costs.
Question 4:The ABC analysis business term involves A items, a very complicated recording system of control and accurate record B items, a less tight good record which is fairly controlled and the C items ...
