Concerns over the application of the ABC approach at Marconi have been raised by personnel, including some of the senior leadership team. It is the opinion of some that this method of cost allocation does not accurately reflect the cost of production and will lead to unnecessary improvements that will ultimately result in the elimination of jobs.As a respected member of the leadership team, the Chief Executive Officer (CEO) has tasked you with investigating the concerns expressed by some of the employee and management officials.You are expected to prepare position paper either defending the use of the ABC method or recommending an alternative method of cost allocation. In order to formulate your response, you will want to carefully consider the problem, collect relevant data and information, examine the pros and cons of cost allocation models being considered, and document your recommendations using sound arguments that are well supported, properly vetted, and logically presented. It is important that management carefully consider any potential ethical implications associated with their stated position. If there are any potential ethical concerns associated with your position, they should be identified and discussed in the final recommendation should be identified and discussed in the final recommendation.