Question 8: Both the conventional and ABC systems of Waffle Delight have two manufacturing direct-cost...
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Question 8: Both the conventional and ABC systems of Waffle Delight have two manufacturing direct-cost categories: direct materials and direct manufacturing labour. A competitor of Waffle Delight has only one direct-cost category in their factory: direct materials. Explain why the competitor might not have a direct manufacturing labour costs category in its costing system. Explain where, in such a case, direct manufacturing labour costs would appear within a costing system. Illustrate your explanations appropriately. Question 8: Both the conventional and ABC systems of Waffle Delight have two manufacturing direct-cost categories: direct materials and direct manufacturing labour. A competitor of Waffle Delight has only one direct-cost category in their factory: direct materials. Explain why the competitor might not have a direct manufacturing labour costs category in its costing system. Explain where, in such a case, direct manufacturing labour costs would appear within a costing system. Illustrate your explanations appropriately
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