managerial acoounting

Required:

1.  Prepare and present budgeted profit statements using:

(a) conventional absorption costing; and                                                              

(b) activity based costing (ABC)                                                                            

(c) Comment on these results.                                                                                

          2.  The Managing Director at Riptide plc has commented to you that he believes that Activity Based Costing is often implemented because it’s fashionable and not because it provides extra information to management.                

     Discuss the above statement.                                                                                                                                                                                                                                                                                                                                                      The word count for part 2, should not exceed 2000 words