Pick a manufacturing firm that produces things and suppose it has been utilizing the traditional cost approach (i.e., broad averaging method). If you are the controller for this business, send the chief financial officer a proposal that has the detail information.

1) Summarize a few of the main issues with the traditional cost approach. More details

2) Explain about the advantages of adopting the ABC system and make it obvious how the ABC system may enhance your performance of the business. More details

3) Describe exactly how your business can shift from the traditional to the ABC method. More details

Answer rating: 100% (QA)

As a manufacturing firm controller I recommend transitioning from the traditional cost approach to the activitybased costing ABC system The traditional cost approach utilizes a broad averaging method ... View the full answer