Reference no: EM132536767

Point 1: 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.

Point 2: 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 30th May. So that means I need it by 29th May at 5.00pm".

Required:

Question 1: In your answer cover the differences between Traditional Cost Accounting and ABC Accounting.

Question 2: 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