Title Page Executive Summary Table of Contents Executive Summary 2 Introduction 4 Task 1 5 What is the expected life cycle per unit? 5 Explain why we should calculate life cycle costs? 5 Discuss the benefits of lice cycle costing. 5 Task 2 6 Overhead costs per unit 6 The merits and criticisms of the ABC system. 6 Task 3 7 Calculate the EOQ (reorder quantity in units)? 7 Calculate the reorder level? 7 Calculate the minimum inventory level? 7 Calculate the maximum inventory level? 7 Discuss the potential problems associated with JIT with examples. 7 Task 4 8 PART A 8 Breakeven calculations 8 Target Profit 8 Part B 8 Materials quantity variance. 8 Total direct labour variance. 8 Direct labour quantity variance. 8 Direct materials price variance. 8 Total overhead variance. 8 Task 5 9 Prepare proforma financial statements. 9 The company’s external funding requirements 9 Financial Performance 9 Conclusions 10 References 10 Introduction Task 1 What is the expected life cycle per unit? Explain why we should calculate life cycle costs? Discuss the benefits of lice cycle costing. Task 2 Overhead costs per unit The merits and criticisms of the ABC system. Task 3 Calculate the EOQ (reorder quantity in units)? Calculate the reorder level? Calculate the minimum inventory level? Calculate the maximum inventory level? Discuss the potential problems associated with JIT with examples. Task 4 PART A Breakeven calculations Target Profit Part B Materials quantity variance. Total direct labour variance. Direct labour quantity variance. Direct materials price variance. Total overhead variance. Task 5 Prepare proforma financial statements. The company’s external funding requirements Financial Performance Conclusions References

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