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please solve in microsoft words Question 3 Telecom Company...

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Accounting

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please solve in microsoft words
Question 3 Telecom Company has appointed a new management accountant. Company was struggling to maintain the profit The board of director of a Telecom Company were expecting that the manager would improve the profit. The company produces and sells one type of mobile phone. Company is expecting to produce 3500 units in the month of August. The following data is available: Selling price OMR 90 Variable cost OMR 50 Fixed production overhead is budgeted to be OMR 50,000. Selling cost is OMR 30,000 Actual Production and sales for the month of August was as below: Production (Units) 3600 Sales (Units) 3200 Required a) Prepare a statement for both the periods using (0) Absorption costing (ii) Marginal costing 4 Marks b) Critically evaluate why there is a difference between the profits using different accounting techniques. 3 Marks c) Explain the argument in favour Marginal costing, 3 Marks

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