Page 18 - CIMA OCS August 2018 Day 1 Tasks

CIMA AUGUST 2018 – OPERATIONAL CASE STUDY

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

Variance Reason

EXERCISE 1(C) - QUALITY COSTING
Comment on how each of the four “costs of quality” could potentially apply to Thomas Fine Teas.

Type of cost How it could apply to Thomas Fine Teas

Prevention Costs

Appraisal Costs

Internal Failure Costs

External Failure Costs

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