The controller of a retailer has just had a $50,000 request to implement an ABC system quickly turned down. A senior vice-president involved in rejecting the request noted, “Given a choice, I will always prefer a $50,000 investment in improving things a customer sees or expe¬

riences, such as our shelves or our store layout. How does a customer benefit by our spending

$50,000 on a supposedly better accounting system?” Howr should the controller respond?

EXERCISES