Accounting study case memo
Write a 1-2 page memo, as the accountant of Brunners Corp, addressed to Jeri Cooper describing your analysis and the outcomes. Make sure you respond to the following items:
1.Provide a total cost estimate using the current traditional costing system.
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2.Provide a total cost estimate using the activity based costing system proposed by the ABC implementation team.
3.Explain to Jeri which cost estimate should be used to develop her bid, and why.
4.Use activity based management to respond to Jeri’s question about process inefficiencies driving up costs.
5.Evaluate the ABC system as it currently stands. Explain what specific change(s) you expect the ABC implementation team to make, and how that could affect your cost estimates.
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