When you reply: You are the CEO and you don't think activity based costing is as good as its made out to be. Write a memo back to the Controller with the issues you believe the company would have if they made the switch. Do NOT reply to a post that has already been replied to! Christopher Parga posted Sep 29, 2022 6:07 PM Subscribe Dear CEO, I have seen room for improvement with the overhead numbers and have looked into ulterior forms to allocate overhead. the most promising is ABC or activity-based costing, which many other companies have moved towards due to its accuracy. Activity-based costing is more complex and allows for a more correct and accurate breakdown compared to our traditional costing. it eliminates cost distortion during cost allocation which is a big problem with the system we use now. it will give the company a clear image of what and how the overhead rate is determined. thank you Christopher parga less