Company Analysis Machine hours for each product of the CPC changed between 1992 and 1993 as the Product Manager attempted to reduce overtime costs. Table 1 below shows estimated machine hours per machine for each product in 1992, and Table 2 shows the same information for 1993. Table 1 - Estimated Machine Hours for Per Machine per Product - 1992 <Tab/>Product I<Tab/>Product J<Tab/>Product K<…showed first 75 words of 2130 total…

…showed last 75 words of 2130 total…of a products contribution towards the companies. Using absorption costing, Management of the CPC can analyse the costs allocated to each product, and recognise whether the revenue it generates is sufficient to meet these costs and achieve profit targets. Under the Variable costing system, which is currently used by the Management of the CPC to analyse profit and loss, fixed costs are shown as a single figure, they are not divided among the product range.