Core Fitness Inc, is a high+end athletic gear manufacturer. The production gear involves many complex and specialized activities that, before now, have lacked organization or procedural direction. The production manager has considered applying a systematic costing system to improve on efficiency production, and he wants your advice about activity-based costing (ABC).

However, while the production manager wants your advice, he has argued that interrupting the existing costing system would be a detriment to the factory. In contrast, the entry-level accountant believes an ABC system would in fact assist the company more effectively in identitying the basic of cost and how to actually regulate the costs.

Role play: as either the production manager or the entry-level accountant to convince the person to agree with your stance.

Answer rating: 100% (QA)

As the entrylevel accountant I understand your concerns about interrupting the existing costing syst... View the full answer