Bright, as management accountant for Cravings for cakes pty ltd, has recommended the introduction of an activity-based costing system to improve the...

U.B.Bright, as management accountant for Cravings for cakes pty ltd, has recommended the introduction of an activity-based costing system to improve the accuracy of the company's product costs. Bright is filled with enthusiasm, but the company's owner, I.M. craving, is more cautious:

Prepare the report for craving that outlines the benefits, costs and limitations of activity-based costing.