Reference no: EM132471670

Required Assume you have been hired as an independent consultant to identify and comment on several aspects of this case which are listed below (see questions, parts (a) - (f)). You should address your report to the Board of Directors of Modern Pen Company. Your report needs to include an Executive Summary. You need to support your arguments with relevant references where appropriate. The references can be drawn from internationally recognised peer reviewed journals as well.

Question (a) How did the market for pens change over time? What could be the forces for change? Explain in detail.

Question (b) Explain how management accounting change applies to this case study. Try to relate your answer to the Burns and Scapens (2000) reading.

Question (c) Estimate the costs for the four pen products using an activity-based approach.

Question (d) What are the managerial implications from the revised cost estimates?

Question (e) How is activity-based costing approach a superior costing method when compared to traditional costing approaches? What are the criticisms of activity-based costing approach? Explain in detail.

Question (f) How would you approach the setting up of an activity-based costing system for the business and what behavioural problems do you think you might encounter?

(You should limit your report to a maximum of 2,500 words)