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Assessment Management Accounting
Assignment Question
Australia is a major manufacturer in dairy products.
To ensure the long-term health of this very important industry, dairy producers need to understand the costs of the milk they produce.
(1)
Do you think Australian dairy producers use job costing, process costing or a combination of these two product costing systems in producing milk? (10 marks)
(2)
Based on your answer to Question 1, consider each step in the production of a dozen bottles of milk. Create a product cost outline for these processes using your own figures. (5 marks)
(3)
Based on your answer to Question 1, what factors outside of production costs would you suggest in order to improve the net profit? (10 marks)

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