You have been appointed as a consulting Management Accountant to an organization with rapidly growing sales and expanding customer acceptance in the surf wear clothing target market 18-30 years. The clothing is sold under a well recognized brand name worldwide. The accounting system has not kept pace with the growth and complexity of the company. It is even more critical for the company to take control of its finances in the current global downturn.
You have been given a list of issues listed below by the management of the company. In analyzing the issues, the management of the company is concerned that the accounting system does not provide tight cost control, measure quality control and does not provide a good basis for the budgeting system. No cost analysis has been done within the company to date.
The management of the company wishes to investigate the following issues given that the management wishes to maintain growth in this turbulent environment:
The managers of the company have been convinced that they need a better costing system. They have heard about Activity Based Costing and they believe that it will improve the accuracy of the costing of their products. Prepare a presentation to the management on whether you believe there is a case to implement Activity Based Costing.
(I am only required to present about the introduction, Conclusion and recommendations. Introduction should include a brief explanation on the old method of costing and its limitations (traditional).
Ill leave it up to you to decide what should be included in the conclusion and recommendation based on my group members’ work which i will upload later. but it is important that i answer the problems that was given to me in the question. Thanks!
I would also need a reference list for the sources that u used thanks