Cambry Day, president of DayTime Novelties, was considering a memo sent to her by Colby Sorensen, vice president of operations. The memo argued that DayTime needed to change its responsibility accounting system from an activity-based approach to a strategic-based ap¬

proach. Colby was convinced that the change would enhance the overall competitiveness of DayTime. He had requested a meeting to explain the similarities and differences between the two approaches. Cambry agreed to the meeting but asked Colby to prepare a memo in advance listing the most important similarities and differences between the two approaches to responsibility accounting.

Required:

Prepare the memo requested by Cambry.