You have recently accepted an appointment to the management accounting team at the Acme Supply Company Limited. The Acme Supply Company Ltd uses a traditional costing system.

The Chief Executive Officer's secretary Emails your team that the CEO wishes to see you all in his office immediately. You all go to the office to be told; "I have just returned from a management conference in St Petersburg and I was embarrassed to find that traditional costing systems had been made obsolete by a new system called ABC. I do not know what this ABC system is , but I need to know what it is, and how it works, and why we still use an old system of costing before I attend my next management conference on 30^th May. So that means I need it by 29^th May at 5.00pm".

Required:

. In your answer cover the differences between Traditional Cost Accounting and ABC Accounting.

In answer cover methodology, timing and other factors that differentiate the two types of management accounting, and also explain the advantages and disadvantages of each type