Page 17 - CIMA MCS Workbook November 2018 - Day 1 Tasks
P. 17
Chapter 4
ADVANCED MANAGEMENT
ACCOUNTING (P2) FAMILIARISATION
1. ACTIVITY BASED COSTING AND ACTIVITY BASED
MANAGEMENT
Grapple currently uses a total absorption costing system based on machine hours.
EXERCISE 1:
Discuss the pros and cons of how activity based costing and activity based management may
provide Grapple with better information and the means to improve profitability.
2. KAIZEN VERSUS BUSINESS PROCESS REENGINEERING
Grapple aims to keep costs down and production wastage to a minimum, although it still
occurs.
EXERCISE 2:
Discuss the contrasts between making improvements via small, incremental changes and through
large business process reengineering projects.
KAPLAN PUBLISHING 13
