NCL Ltd is a fast-growing, high-technology firm, which is adopting target costing approach for its cost management currently. After hearing a talk at a branch meeting about the introduction of an activity-based costing (ABC) system, the CEO asked you to write a short report, advising him how to implement activity-based approaches as a basis for much of its management accounting information. Required: a). Please describe how the target costing approach to cost management for business. b). Explain in what ways "activity-based approaches" may be used for cost management, and discuss the benefits of these approaches. c). You are also suggested to introduce "activity-based approaches" for plans and budgets preparation of the business. Please describe the main features of an activity based budgeting system and comment on the advantages claimed for its use.