You are the management accountant of a retail clothing company . The budget committee has rejected...

 

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You are the management accountant of a retail clothing company . The budget committee has rejected your budgeted proposal of $80 000 to implement ABC costing system. The senior executive in rejecting your proposal noted : "Given a choice, I always prefer an $80 000 investment to improve things a customer sees or experiences, like our store layout. How does a customer benefit from our spending $80 000 on a supposedly better accounting system? Write a letter to respond to the retailing executive's comment. Highlight the benefits and rewards of using ABC as well as how to overcome impediments of introducing ABC in your answer. You are the management accountant of a retail clothing company . The budget committee has rejected your budgeted proposal of $80 000 to implement ABC costing system. The senior executive in rejecting your proposal noted : "Given a choice, I always prefer an $80 000 investment to improve things a customer sees or experiences, like our store layout. How does a customer benefit from our spending $80 000 on a supposedly better accounting system? Write a letter to respond to the retailing executive's comment. Highlight the benefits and rewards of using ABC as well as how to overcome impediments of introducing ABC in your answer.

Answer rating: 100% (QA)

Dear I received your feedback on my proposal to implement ABC costing system I appreciate your focus on what the customer sees your experiences which ... View the full answer