Analysis on Activity Based and Volume Based Costing Systems

Analysis on Activity Based and Volume Based Costing Systems in $19 Only

You have just been hired as an accountant for the PCB (Printed Circuit Board) Department of LifeSung Corporation. LifeSung is a highly diversified organisation headquartered in Taiwan, with interests in healthcare, electronics, construction, insurance and shipbuilding. The PCB Department is part of the Electronics Division of LifeSung and produces circuit boards mainly for use in alarm systems. However, there are other circuit boards that are produced for other electronic devices, but these make up a small percentage of total sales.

Three of the circuit boards produced by the PCB Department make up the bulk of the department’s sales: The first, Advanced Circuitry, has been the mainstay of the department for several years. The market for this board is very competitive and price sensitive. The second, Boosted Circuitry, was a new board introduced two years ago. It is a medium range circuit board that had slightly more advanced features. This board has been used in alarm systems that could be partly modified by customers to suit their requirements. The third circuit board, Customised Circuitry, is a top-of-the-range circuit board that allowed full configuration of the alarm system by customers. This board incorporates the latest technology and the price matches the capabilities of the circuit board.