Describe the circumstances under which it would be appropriate to use Process Costing

9. Marginal costing techniques are used in decision making.
(a) Describe the role of marginal costing and the factors to be considered in
making decisions in respect of:
(i) Special Orders;
(ii) Making or buying component parts for a product;
(iii) Factors which limit production;
(iv) Product pricing.
There are a number of assumptions which have to be made when conducting a
break even analysis.
(b) Discuss these assumptions and their basic flaws.
(c) Explain how a break even analysis is conducted in a multi-product situation.
10. (a) Describe the circumstances under which it would be appropriate to use
Process Costing.
(b) Discuss the effects on the cost per unit produced of each of the following and
describe how they are dealt with in a process costing system.
(i) Waste and Scrap
(ii) Normal and Abnormal Losses
(iii) Joint Products and By-products
(iv) Work in Progress