Accounting Project

The ABC project guidelines are all in the file I provided. Please read and complete the guidelines per everything I have provided.

1. Please complete the ABC Project Analysis worksheet by using the information on the 2nd Page.

2. Please write a ONE page executive Summary (below) MLA

This is a one-page summary of your findings and conclusions that can stand alone. It should provide links to where more in-depth analysis is found in the paper. One easy way to structure your executive summary is to use a memo template from Word. Keep in mind that your boss might read your entire report, but your boss’s boss might only read the executive summary. Your conclusions should JUMP out at the reader. You can use bullets, bold, tables, and any other formatting tool to enhance the readability of the report.

3. Please write a Report (Below) 6 Pages MLA

ABC Project-Writeup

You are to assume you are a consultant working for the company. You will want your report to be professional and “ADD VALUE” to the company. Use an executive summary, followed by the detailed report.

Be sure to include the following:

  1. (1) Argue for the use of Activity-based Costing by in this case by:a) Describing when Activity-based Costing is appropriate and when Traditional Costing is appropriate and when each is not appropriate to use.b) Discussing what are the strengths and weaknesses of ABC? When is it appropriate to use? What kinds of business situations suggest the need for ABC?c) Applying a &b to the case and arguing for an Activity-based Costing system.
  2. (2) Describe the Activity-based costing system you are recommending. Include a justification for the cost driver selected.
  3. (3) Present your new cost findings. Include both per unit and total cost data. There should be tables with cost information included.
  4. (4) Make strategy recommendations for each product and for the plant. Use the cost and profit numbers to justify these recommendations.
  5. (5) Comment on the validity of the plant manager’s concern that competitors are selling below the cost of making Part 127.
  6. (6) Explain the apparent lack of competition for Part 234 and the customers’ response to potential price increase.
  7. (7) Make any other additional recommendations or suggestions.

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