Are there significant cost differences between the old allocation method and the ABC method for any of the product lines and why?

Brief 3: Super Bookstore
Paper, Order, or Assignment Requirements

Purpose
To assess your ability to:
• evaluate the costs and benefits of implementing activity-based costing systems
• recommend an accounting system that works best for a company

Action Items
1. Read the Problem 6-37.
Case Background: You work for an outside consultant hired by the company. The partner (i.e., your instructor) has asked you to provide an analysis of this problem and make a recommendation; therefore, you will address the brief to your instructor.
2. Download the 5-step critical-thinking decision-making matrix.
3. Complete the questions concerning Step 1: Identify the problem(s) and uncertainties based on the assigned problem.
4. Complete the P6-37 template worksheet by filling in the shaded outlined cells; no modifications can be made to the worksheet. This information is one source for completing Step 2: Obtaining Information on the matrix.
5. Complete Step 3: Make predictions about the future on the matrix.
6. Complete Step 4: Make decisions by choosing among the alternatives on the matrix.
7. Review the Sample Business Brief and the grading rubric (below) for the assignment.
8. Write a one-page analysis according to the Business Brief Guidelines. Complete sentences must be used (bullets not acceptable). Your analysis must be written using a concise writing style. Your brief should incorporate all of following instructions:
a. An opening paragraph briefly introducing the case situation.
Note: The first half of the opening paragraph is to provide a synopsis of the company. The second half of the opening paragraph is state the problem (From Step 1 of the matrix).
b. Analysis header – The analytical section should be based on your personal assessment of the financial results from the worksheet. Develop your analysis using percentages and/or relevant dollar totals/balances. This section has the highest point value and should address the following:
i. Are there significant cost differences between the old allocation method and the ABC method for any of the product lines and why?
Note: Avoid the inclusion of calculations and/or explaining computations; instead refer to Appendix A. Avoid duplicating information within this section. The information for this section of brief should be derived from Steps 2 and 3 of the matrix.
c. Conclusion header – This section should include your opinion based on your analysis of the case information and situation outcome. Your recommendation should address the following question and provide only key relevant information and logical discussion in support of your opinion:
i. Based solely on the worksheet information (Appendix A), should the bookstore adopt the ABC method? (From Step 4 of the matrix)
d. APA citation(s) and reference(s).
9. Check your writing style by using the Grammarly app you downloaded. (See instructions under Week 1 Preparation.) Correct your business brief as needed.
10. Submit your business brief to turnitin.com.
11. Read the Originality Report you receive from turnitin.com and make any modifications as needed to your business brief. This may include adding proper citations or better paraphrasing.
12. Attach the appendices to your paper:
a. Appendix A containing the P6-37 worksheet.
b. Appendix B containing the completed 5-step critical-thinking decision-making matrix.
c. Appendix C containing the grading rubric for the assignment.

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