Demonstrate-discuss the underlying differences between the ABC-traditional approach?

MANAGEMENT ACCOUNTING FOR BUSINESS

Assignment brief: Answer all three questions

Strategic management accounting is concerned with providing information that will support the strategic plans and decisions made within a business: you are required to critically review this statement.

In doing so you should consider the following areas of strategic planning:

Establishing mission, vision and objectives

Undertaking a position analysis such as SWOT

Identifying and assessing strategic options

Selection of strategic options and formulation of long- and short-term plans

Performance review and control

Critically investigate the benefits and limitations of Activity based costing (ABC) compared to traditional costing as an aid to management decision making within manufacturing and service providers industries.

Critically investigate this argument by considering the following areas:

Demonstrate and discuss the underlying differences between the ABC and traditional approach?

b) What has been the basis of the theoretical criticism of ABC?

c) Outline the practical problems that may be encountered in implementing ABC techniques in manufacturing and service industry and comment on how they may be overcome?