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 ap- proach to a strategic-based approach. Colby was convinced that the change would enhance the overall competitiveness of DayTime. He had requested a meeting to ex- plain 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 im- portant similarities and differences between the activity-based and strategic-based approaches to responsibility accounting.

Required:

Prepare the memo requested by Cambry. lop4