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b) Kitchen Appliances Ltd is considering adopting ABC costing and has identified the following five...

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Accounting

b) Kitchen Appliances Ltd is considering adopting ABC costing and has identified the following five activity cost pools if it makes the switch: 1. Purchasing 2. Handling materials 3. Machine setups 4. Assembly 5. Utilities Required: i. Identify a suitable cost driver for each of the five activity cost pools. (2.5 marks) ii. What would make the company switch to an ABC system? (1.5 marks)

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