The question i need answered starts off with "your boss, the vice president of your..."

For both years under both systems, the direct costs and selling price margins of $6.80 and $15.95 for the Runner and the Pump, respectively. In of goods sold is divided by number of units sold to calculate fixed overhead per r and the Pump, respectively. The fixed overhead in under the original system. Under that system, net profits increase from old to calculate fixed overhead per unit for both years and $9.50 to $9.96 per Pump. When the overhead is divided into product line that system, net profits increase from $0.87 to $1.29 per Runner cost structure changes significantly. The Runner she thead is divided into product-line and batch costs, the years. Profits on the Pump in turn drop to $6.28 and $7.79. The Runner's net profits jump to $2.72 and $2.77 for the two lui Seminar Your boss, the vice president of corporate accounting, has just returned from a two-week seminar in Maui on activity-based cost accounting. He says he wants to completely overhaul the company's existing absorption-based accounting system. "Activity-based costing is the wave of the future and will allow us to make better product-line decisions and therefore be more competitive in the market- place," he asserts. He wants you to start implementation immediately, but he would like your comments before you begin. How do you respond? SOURCE: L. McGinn. For both years under both systems, the direct costs and selling price margins of $6.80 and $15.95 for the Runner and the Pump, respectively. In of goods sold is divided by number of units sold to calculate fixed overhead per r and the Pump, respectively. The fixed overhead in under the original system. Under that system, net profits increase from old to calculate fixed overhead per unit for both years and $9.50 to $9.96 per Pump. When the overhead is divided into product line that system, net profits increase from $0.87 to $1.29 per Runner cost structure changes significantly. The Runner she thead is divided into product-line and batch costs, the years. Profits on the Pump in turn drop to $6.28 and $7.79. The Runner's net profits jump to $2.72 and $2.77 for the two lui Seminar Your boss, the vice president of corporate accounting, has just returned from a two-week seminar in Maui on activity-based cost accounting. He says he wants to completely overhaul the company's existing absorption-based accounting system. "Activity-based costing is the wave of the future and will allow us to make better product-line decisions and therefore be more competitive in the market- place," he asserts. He wants you to start implementation immediately, but he would like your comments before you begin. How do you respond? SOURCE: L. McGinn