Management Accounting
Write a 1500 word report to the DVP partners. You should:
1) Briefly explain to the partners the difference between the OAR and ABC methods
and why ABC might be a better tool to use for their business;
2) Set out the differences in costings between methods for the four Cases you have
analysed;
3) Discuss the implications of these differences for the business and recommendations about how the business might become more profitable. Your recommendations should be sensitive to the business environment and take into account costs, drivers and pricing decisions.