I can appreciate this explanation of traditional costing systems and activity based costing methods. A few questions though could be asked to make it easier for me to understand. Some of these are: What would you consider as an individual product? What are cost drivers?
I think that the reason top level management is resistant to activity costing systems is twofold. One, I think that they don't want to do it because it is time consuming and costly. Two, I think that because they are already doing costing methods for the external financial reports and the activity costing systems can't be used on those reports that they don't want to do it.