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. Crumbly Cakes make cakes, which are sold directly to the public. The new production...

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Accounting

. Crumbly Cakes make cakes, which are sold directly to the public. The new production manager (a celebrity chef) has argued that the business should use only organic ingredients in its cake production. Organic ingredients are more expensive but should produce a product with an improved flavour and give health benefits for the customers. It was hoped that this would stimulate demand and enable an immediate price increase for the cakes. Crumbly Cakes operates a responsibility based standard costing system which allocates variances to specific individuals. The individual managers

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