Activity Based Costing System and Absorption Based Costing System Presentation

Imagine that the CFO of your manufacturing company is seeking your help regarding a decision to switch to an Activity Based Costing system from their traditional Absorption Costing system due to numerous complaints from managers about inaccurate product costs. He has invited you to attend the next executive management meeting to unpack the differences between these two costing systems so they can make an informed decision.

Create an original presentation comparing these two costing methods. He has asked you to keep it brief, professional, and easy to understand. He wants to see which costs will be affected, but he does not want to see too many confusing numbers. Make it interesting and easy to understand. Without the full support of top management, the CFO says this new costing method will be doomed to fail.

Your presentation should be recorded as though you are in the board room presenting–do not just read the slides! Include at least one costing example for each method. Clearly state your recommended method in your presentation. Microsoft PowerPoint has excellent design templates to make a professional presentation. Your presentation should include either notes of what you would say in a live presentation, or recorded narration.

 

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