1. Apply the costing system in use at CRQ to calculate a cost per procedure.
2. Evaluate the costing system as a basis for charging patients and for monitoring performance.
3. Recommend a costing system that is capable of addressing issues raised in your evaluation.
Note: apply the system that you have recommended.
4. ‘There’s no reason for me to get excited about the choice between the weighted-average and
FIFO methods in my process-costing system. I have long-term contracts with my materials
suppliers at fixed prices.’ Do you agree with this statement made by a plant controller? Explain
your answer.
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