Sandra Smith is the financial controller of Fluffy Clouds, which is a manufacturer of baby clothes. The company is considering implementing an activity-based budgeting system and Sandra has asked for your advice on how to proceed.
Required
Write a report for Sandra that covers the following issues:
1. The advantages of ABB over traditional budgeting.
2. How activities and cost drivers could be selected.
3. The types of information that may need to be collected to maintain the system?