- Discuss the current competitive environment.
- Describe Sapphire’s current cost accounting system.
- What are the weaknesses in the present cost accounting system?
- Is the CEO correct to be concerned about costing?
- Describe the proposed cost accounting system.
- Calculate the cost of each product based on the existing and revised costing systems.
- What insights, if any, does the revised costing data provide?
- How will this facilitate better decision making?
- What do you suggest the company should do?
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