2. The benefits and drawbacks of using ABB to determine the overall operating cost budget for the Distribution Centre. [28 marks]

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Table 1: Activities of packing employees in the packing hub at the Distribution Centre Gar anltha adan Table 2: Details of the options for the robots lease The expansion of the Distribution Centre is progressing well. You receive the following email. From: Ben Numa, Finance Manager To: Finance Officer Subject: Activity based budgeting and lease options As a result of the Distribution Centre expansion, we need to revise the budget for its operating costs. Emily Queda, Finance Director, believes that, given the increase in the product range handled at the Distribution Centre, we should consider using an activity based budgeting (ABB) approach. She has asked for a briefing paper to be circulated to the Senior Management Team (SMT) on this, using the employee cost budget for the online sales packing hub for illustration. Information about the packing hub is attached (Table 1). Please prepare a briefing paper for the SMT which explains