ACG4342 - Writing Project and Presentation

PROJECT INFORMATION:

You are a manager atPopUpCompany, who manufactures toaster ovens.Your company produces two types of toaster ovens: basic and deluxe.PopUpCompany currently uses a traditional unit-based costing system, however, you feel stronglythe companyshould switch to an activity-based costing system.You believe this change wouldprovide you moreaccurate costing information, whichwould allowfor better strategic decision making.You need to prepare a number of documents in order to convince the CFOto changethe current cost management system used by your company.

Course objectives covered:1, 2, 3, 4

PROJECT REQUIREMENTS:

This project is split into four (4) parts with one (1) part due each week of the course. Based on your readings, use of technology, current literature, and other sources do the following:

Part:

1. Write a 2-3 page report, using at least 1 reference from theKeiserUniversity Library, comparing the traditional and activity-based cost management systems.Give advantages and disadvantages of each and discuss how these concepts will relate to PopUp Company.
2. Compute the unit cost of both the basic and deluxe toaster using both the unit-based approach, and the activity-based costing approach.Use the data and template provided in this file:Part 2 Writing Project.xls.Also, preparesample budgeted income statements and balance sheets based on thecosting data you calculated. You can make your own assumptions related to the number needed to complete these statements.
3. Prepare a 2-3 page memo addressed to theCFO summarizingyour findings, and why you believe the activity-based costing method gives you more useful information to make decisions for the company.Include in the memo at least 4 ratios that you feel highlight your position that activity-based costing is more useful.
4. Prepare aPowerPointpresentation, with recommendations you would make to the CFO based on the information you gathered using activity-based costing, and what you have learned in this course. Also include how this decision would impact the buget for next year.