Your boss, the vice president of corporate accounting, has just returned from a two- week seminar in Maui on activity- based cost accounting. He says he wants to completely overhaul the company’s existing absorption- based accounting system. “Activity- based costing is the wave of the future and will allow us to make better product- line decisions and therefore be more competitive in the marketplace,” he asserts.
He wants you to start implementation immediately, but he would like your comments before you begin. How do you respond? S ource: L McGinn.