Q: 7
TP makes wedding cakes that are sold to specialist retail outlets which decorate the cakes according
to the customers’ specific requirements. The standard cost per unit of its most popular cake is as
follows:
The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg
and $20 per kg respectively. TP operates a JIT purchasing system for ingredients and a JIT production
system; therefore, there was no inventory during the period.
Discuss the usefulness of the planning and operational variances calculated for TP’s management.
Select ALL the TRUE statements.
The general market prices at the time of purchase for Ingredient A and Ingredient B were $23 per kg
and $20 per kg respectively. TP operates a JIT purchasing system for ingredients and a JIT production
system; therefore, there was no inventory during the period.
Discuss the usefulness of the planning and operational variances calculated for TP’s management.
Select ALL the TRUE statements.Options
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