Page 17 - CIMA OCS Workbook February 2019 - Day 1 Tasks

MANAGEMENT ACCOUNTING (P1) - FAMILIARISATION

EXERCISE 1(B) - STANDARD COSTING AND VARIANCES
Suggest four variances that would be of most use to Trigg Adventure. Justify your choices.

Variance Reason

Sales price variances

For towers and arms do
sales mix and quantity
variances

Wood price variance

Wood usage variance

Labour efficiency
variances

EXERCISE 1(C) - QUALITY COSTING

Comment on how each of the four “costs of quality” could potentially apply to Trigg Adventure.
Type of cost How it could apply to Trigg Adventure

Prevention Costs

Appraisal Costs

Internal Failure Costs

External Failure Costs

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