You are a manager at PopUp Company, who manufactures toaster ovens. Your company produces two types of toaster ovens: basic and deluxe. PopUp Company currently uses a traditional unit-based costing system, however, you feel strongly the company should switch to an activity-based costing system. You believe this change would provide you more accurate costing information, which would allow for better strategic decision making. You need to prepare a number of documents in order to convince the CFO to change the current cost management system used by your company.
Part 1: Write a 3-page report, using at least 1 reference from the Keiser University Library, comparing the traditional and activity-based cost management systems. Give advantages and disadvantages of each and discuss how these concepts will relate to Pop Up Company.
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