Question - You are the controller for a medium-sized manufacturing company. Your CFO and CEO are engaged in a debate. Your CFO wants to implement lean accounting methods in order to become more competitive. Your CEO, on the other hand, feels that ABC accounting would be of greater help. You have been assigned the tasks of writing a brief report to help resolve the debate.
Required -
a. Write a brief report that evaluates the option of implementing both lean accounting and ABC accounting.
b. Include in your report a summary of the basic cost accounting concepts that underlie the two options.