Required:
1. Conduct some research to explain the value of cost classifications for Ocha Limited and how
this may assist Tomohiro in improving their decision-making processes.
2. Conduct some research into costing techniques that Ocha Limited might find useful. Based
on this research and using the detail in the case, choose a specific technique (or set
of techniques) that you believe would be most suitable. Describe specifically how your
chosen technique(s) could be used by providing tangible examples of how they would
operate within Ocha Limited. It should be clear fromthese examples howOcha Limited would
determine a product cost for their products. Also, briefly describe why you consider your
chosen technique(s) to be superior to other techniques.
(Please note: you are not required to actually calculate any costs here, just outline how
costing could be done differently. Therefore, you may wish to provide a table or diagram
outlining the operation of your proposed costing technique(s).
3. Using the detail in the case, describe how your chosen method of calculating product cost
will be beneficial within Ocha Limited and have relevance to management.
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