recommendation(s) will you give to Unidac’s management?(d) Identify three main costs or limitations of an activity-based costing (3 marks)system.Question 3 (20 marks)John Lane is the new appointed financial controller of Sonic Manufacturing Ltd (Sonic).The company specializes in the manufacture of audio and video devices. John met withTony Chan, Sonic’s plant manager, on the first day of work at his new job. Tony expressedhis big concern to John about the current huge cash flow tied up in the inventory stored inthe warehouse. He has been considering the implementation of a JIT production project inthe plant. However, he is unsure about the benefits, given the risks involved for not keepingadequate inventory for production. John was asked to evaluate the proposal and give him
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