Differentiate with suitable examples the traditional costing systems and activity-based costing. Explain how ABC is used in manufacturing by providing a numerical example.

Accounting question

Q1 Differentiate with suitable examples the traditional costing systems and activity-based costing. Explain how ABC is used in manufacturing by providing a numerical example.

Note: Your answer must include suitable numerical examples. You are required to assume values of your own and they should not be copied from any sources

 Q2 Provide a numerical example of special-order decisions and make or buy decisions and explain how these decisions are backed by quantitative and qualitative considerations.