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I need only introduction and Literature review total of 800 words.
*introduction (500word )
*literature review (300 word )
*5-10 references
Zubair Technologies Co (ZTC) produces and sells Gadgets for children. The company’s main customers are Super stores like Lulu and Carrefour that sell a Gadget, which can survive rough handling by children. The Gadgets are individually specified by Stores for each order and pricing has been on a product cost plus basis with a mark-up of 35%. The company uses an absorption costing system based on labour hours in order to calculate the production cost per unit.
The main control system used within the company is the annual budget. It is set before the start of the financial year and variances are monitored and acted upon by line managers.
Further financial information is provided in the below table:
Volume (units)
12,300
Total
OMR‘000
Direct variable costs Material
21,200
Labour
1,890
Packaging and transport
1,200
Subtotal
24,290
Overhead costs
Customer service
3,650
Purchasing and receiving
1,250
Inventory management
1,060
Administration of production
1,350
Subtotal
7,310
Total
31,600
Labour time per unit
2 hours
Data collected for the year
No of minutes on call to customer
420,600
No of purchase orders raised
11,200
No of components used in production
310,800
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