...Running head: ABC Systems: Are they Advantageous ABC Systems: Are they Advantageous Jamie Parson Liberty University Abstract Activity based cost accounting provides companies with detailed and pertinent information that enables them to accurately cost the manufacturing products. Although it is at time confusing the use of an ABC system allows managers the details they need to make educated decisions about production and costs. The use of the ABC system is not always the most popular way for companies to go, but is it worth it? ABC Systems: Worth the Work? Activity Based Costing or as it is more commonly labeled “ABC” is a costing system that firsts assigns cost to activities and then assigns them to product based activities used towards that product. Costs are assigned to activities in a detailed manor so that detailed costs per activity are available. Once costs are assigned to activities they are than assigned to products based on the products use of that resource. ABC techniques allow businesses to decide which products, services, and resources are increasing their profitability, by providing more detailed information to management. The implementation of an ABC costing method it not right for all corporations; however for the corporations that fit the model for an ABC system, managers are more educated to make informed decisions about the true cost of a product. The use of this system allows more accurate and cost effective: pricing, costing, process improvements...
Words: 1314 - Pages: 6
...Wilkerson Company Case: Wilkerson Company In the case, we have review the allocation of overhead by using Traditional Cost Accounting (TCA) and Activity Based Costing (ABC) in a manufacturing company named Wilkerson. Through the case study, I have learnt the importance of Cost Accounting System, the principles of TCA and ABC, the advantages and disadvantage of ABC, the practical use of ABC and cost reduction using ABC. 1. Importance of Cost Accounting System. Through the case study, I learnt that a proper Cost Accounting System is very important in a company. Without the accurate system, a company is unable to maximize the profit from the product sold. The product price might be charged too high (over-priced) or too low (under-priced). All these will eventually affect the profitability and revenue as it is actually making very minimum profit or even having loss by selling under-priced product and also might find difficulty to market its over-priced product. Indeed, with the accurate cost accounting system, the company can maximize the profit by setting the appropriate price and compete in the market, or the company can even identify the highest profit-generating product and concentrate their marketing promotion on it. 2. Principles of TCA and ABC. By studying the case, I also learnt the cost accounting system had evolved from TCA to ABC. The TCA method assumes that all products indirect cost is only driven by one cost driver which is number of direct labour. The allocation...
Words: 505 - Pages: 3
...Management Accounting Assignment Activity-Based Costing (ABC) is a theory for cost management controlling. Activity based on the management aims to describe a company as a series of activities which are related to customers’ desires and costs. Activity-Based Costing is a process for calculating the cost of the activities of an organization. Activities within an organization are identified and an average cost is related to each activity. The total cost of a product is the sum of the total costs of activities required to produce the product. The cost of every activity for products is identified as (the average cost of the activity) * (the number of times the activity, which is required for that product). Cooper and Kaplan (1992) explained how Activity-Based Costing allows the very important distinction between resource usage and resource purchase. The difference is the unused capacity. Removal of this unused capacity allows costs to be decreased. Turney (1992) thought that the important non-temporal links between cost and company quality. He also explained how it is important between assets, resource drivers, activities, activity drivers, processes, company performance, cost drivers, and cost. Turney (1989) claimed that underlying Activity-Based Costing is type of an assumption that activities cost resources and products consume activities. Activities contain the establishing vendor relations, spending, paying out, setting up a machine, running the equipment, reorganizing...
Words: 1255 - Pages: 6
...An organisation so as to be to comply with financial reporting requirements, the traditional cost accounting system is closely linked to its general ledger system. This in particular has to do with cost allocation. Mostly, costs are accounted either for valuation (i.e., financial statements analysis) or decision-making activities (i.e., internal purpose) or both. Meanwhile, sometimes the costs are accounted for reimbursement purposes (e.g., corporate health insurance, corporate travel). The traditional approach to cost-allocation manages three sequence of actions: a) Accumulate and account costs within a production or nonproduction business area, b) Allocate nonproduction business area costs to production business area, and c) Allocate the resulting (revised) production costs to various products, services, or customers. Costs hence derived using traditional allocation approach suffers from some defects that can result in incorrect costs for decision-making purposes. For example, the traditional approach attributes the cost of idle position to systems. Accordingly, such costs are recharged to entities that did not use it. In order to find solution to such anomalies, many organisations have adopted a separate cost-allocation methodology called Activity Based Costing (ABC). WHAT IS ACTIVITY BASED COSTING? In contrast to traditional cost-accounting framework, ABC framework first accumulate overhead costs for each organizational activity, and then assign the costs...
Words: 1029 - Pages: 5
...Accounting International Project Doing business in a particular nation requires a focus on a multi-dimensional understanding of its culture and business practices. Understanding those differences and adapting to them is the key. In such a richly diverse and complex country as India it is difficult to impart generic conclusions that can be used by those doing business there. Regionalism, religion, language and caste are all factors that need to be taken into account when doing business in India. Behaviour, etiquette and approach are all modified depending on whom you are addressing and the context in which they are being addressed. The business culture of India is a reflection of the various norms and standards followed by its people. Indians have various cultural yardsticks, which extend to their business culture too. Thus, it is important that a person visiting the country has an idea of the business culture of India. Thus, it is important that a person visiting the country has some basic idea regarding the business ethics and customs followed here. Having a good grasp on Indian business culture will ensure that you succeed in maintaining a well-earned affinity with your business counterparts. The following tips will give them an idea of the working and business norms in practice here. These form the basis of doing business in India as well as closely connected to risks of doing business in India. • The 'namaste' forms an important part of Indian...
Words: 1213 - Pages: 5
...Individual: Communication Paper Suzanne Beal BCOM/230 October 08, 2012 Hank Parisi First I want to take this opportunity to welcome you to ABC Accounting, Inc. I am very confident that you will follow in my footsteps to lead this team to success. I want to take this time and give you a few words of wisdom that I have acquired through the years to help you make this transition go as smoothly as possible. Your main responsibility here at ABC Accounting is to maintain a cohesive working team. One of the more challenging responsibilities will be introducing new employees to the team members. Here are some of the barriers that you could encounter and some suggestions for some possible solutions. One of the most common barriers that you will come across is what I call the no it all’s. On occasion you have someone join the team who thinks they have the answers to everything. You need to be careful with this because you do not want to deter them from sharing their thoughts neither do you want them to steal the show. Always allow them the chance to give their input because sometimes their ideas are a welcomed change. Another barrier that you may come across is personality clashes. This can be tricky because you do not want to look as though you are taking sides so give each person a chance to speak and see if you can work out the differences together. You may also encounter those who are reserved and just listen without giving input...
Words: 1026 - Pages: 5
...CHAPTER 4 ° SOCIAL AND CULTURAL ENVIRONMENTS 114B CASE 4-2 Disney Learns to "Act Local" on the Global Stage The Walt Disney Company, home to Mickey Mouse, Donald Duck, and other iconic characters, has a stellar reputation in many parts of the world for its family-friendly entertainment offerings. The company's parks and resorts division operates theme parks in five global locations, including a recent $1.8 billion park in Hong Kong. Disney's fabled studio entertainment unit has an illustrious history in both animation and live-action features. The Lion King, released in 1994, is the highest grossing animated film of all time. More recently, Disney has enjoyed massive hits with live-action features. These include Pirates of the Caribbean and its sequels as well as classic American fare such as the TV show High School Musical. However, despite high worldwide awareness levels of the Disney brand, as of 2006 only 25 percent of the company's revenues came from outside the United States. Historically, the Disney team has created products at its headquarters in Burbank, California, and then exported them to the rest of the world. Now, as the company targets China, India, South Korea, and other emerging markets, it is departing from its "one size fits all" approach. One factor driving the strategy change: the first-year visitor count in Hong Kong fell short of the target figure of 5.6 million people. This prompted company executives to step up efforts to educate the Chinese about...
Words: 1222 - Pages: 5
...Walt Disney Case Analysis Corporate Strategy The Disney brand is extremely well known, but most may not realize how diversified the company actually is. The company is made up of media networks, theme parks and resorts, studio entertainment, consumer products, and interactive media. Walt Disney Company’s corporate strategy involves three aspects; creating high-quality family content, exploiting technological innovations to make entertainment experiences more memorable, and internal expansion. Disney wants the whole family to be involved. Much of their success is due to targeting not just children, but the entire family. The movies and shows they release are done with family in mind. Theme parks and resorts, Disney Cruises, live performances and interactive media are all aimed at creating high quality family content. Disney acquired Pixar, Marvel, and Playdom in order to satisfy their second corporate strategy. The acquisition of Marvel and Pixar was intended to enhance Disney’s animation abilities to make experiences more memorable. Playdom gave the company new online gaming capacities that Disney hoped would help to improve its struggling interactive media division. UTV was acquired to facilitate its international expansion efforts. Disney’s international expansion strategy mainly focused on opportunities in emerging overseas markets. As of 2012 The Disney Channel was available in more than 100 countries and reached 75 percent of viewers in China and Russia. This was...
Words: 1872 - Pages: 8
...behind ABC’s decision to close ABC shops (Battersby 2015) on the basis of strategic evaluation of both external and internal environment by applying analytical tools. The possible outcomes of this action will be critically assessed. Analysis 1. External As reported by Owens (2015), the main consideration of management is the disappointing profitability of ABC shop. Macro environment is evaluated by applying PEST and Porter’s Five Forces framework introduced by Jones (2015). PEST Political: Compared with industry-level, ABC group is facing more significant political impact at company specific level. On the one hand, the state-owned ABC benefits from large government funding as it enables ABC to carry out robust long-term strategy with clear income forecast. As discussed by McNair and Swift (2014), ABC has been acknowledged as producing good-quality news to serve public interest. On the other hand, being public means ABC suffers more political tension than private media. Especially when the Australia government announced to cut ABC funding by $ 254 million despite promising not to before the election (Hutchinson 2015), currently ABC is confronted with big challenge of delivering consistent service with less budget, keeping good relationship with successive government while remaining political-neutral in broadcasting, reminding people of its achievements and promoting public image to weather the storm. Overall, cutting funding gives ABC a hard time and enforces the company...
Words: 1349 - Pages: 6
...MIS-502, Fall-2015. NBA: Competing on Global Delivery with Akamai OS Streaming 1. Why is it important that all fans in the world have the same experience? A. It is very important that all fans in the world have the same experience to avoid the feeling of exclusion from the non- American fans. Akamai Company should maintain its website in an efficient manner which includes less streaming in video, RSS feeds etc. The NBA has real assets to expend itself around the world because, it contains numerous other countries players. Fans would be able to view whatever they want by using Akamai website with NBA. 2. Why is it important that individual franchise owners can build, manage, and distribute on the NBA platform their own content? A. Each team has its own franchise. Each team has to build its own image to become more powerful in franchise market. It is important that franchise owners are able to distribute the content, and publish the live events. Individual franchise owners will also able to gain exposure for their franchise with fans as well as business partners. The franchise owner is able to have access to a segment of the population that the NBA can’t reach. 3. Using the competitive forces model illustrated in Figure 2.3 of the text, analyze the NBA’s market situation. How does the use of Akamai help the NBA compete in this market? A. According to figure 2.3, there are five competitive forces which explained the E-commerce sway industry structure...
Words: 659 - Pages: 3
...Roll No. Serial No. of Q. C. A. B. ≤¡ÈJ …ÂX‡Rπ› ‚¢zW : 58 ] Total No. of Questions : 58 ] [ ≤¡ÈJ ÆÂÈÈåX∆ …ÂÏ¡π› ‚¢zW : 40 [ Total No. of Printed Pages : 40 81-E Code No. : 81-E ‚¢xË∆ ‚¢zW : ê·ÂŒÈ : πÂä∆ Subject : MATHEMATICS (ߢÇYË·˜Ô ü˘Ê·Ê¢∆¬ / English Version ) [ Date : 08 04. 2013 [ Time : 9-30 A.M. to 12-45 P.M. [ Max. Marks : 100 å»Ê¢∑ : 08. 04. 2013 ] ‚ÂÆÂÈŒÈ : üúπB 9-30 ࢫ ÆÂÈ«˘ÊW„ÂR 12-45 ¬ÂÕ¬π ] …¬ÂÆÂ⁄ÕÂå˘ •¢∑π›ÂÈ : 100 ] FOR OFFICE USE ONLY Q. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. Marks Q. No. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. Marks Q. No. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. Marks Q. No. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. Marks Q. No. 53. 54. 55. 56. 57. 58. Marks × × × × × × × Total Marks Total Marks in words 1. 2. Grand Total ✓ ✓ Signature of Evaluators Registration No. ✓ Signature of the Deputy Chief ✓ Signature of the Room Invigilator ✒ 912130 [ Turn over 81-E General Instructions : i) ii) 2 The Question-cum-Answer Booklet consists of objective and subjective types of questions having 58 questions. Space has been provided against each objective type question. You have to choose the correct choice and write the complete answer along with its alphabet in the space provided. For subjective type questions enough space for each question has been provided. You have to answer the questions in the space. Follow the instructions...
Words: 2259 - Pages: 10
...Summary Walt Disney Company is a global company that is a family-friendly entertainment offering. As we know, Disney is a company that well known in films and television show. Besides that, Disney started operate in resorts and also theme park. Disney wants to target their theme park to the global market and build global awareness. Their target market is China, India, South Korea and other emerging country. They want to enlarge their market share and find new potential market. First and foremost, Disney wants to educate to the Chinese about their cartoon character and also some famous stories and theme. Second, they also must learn the country’s cultures because different countries have different cultures. For example, in Hong Kong, Chinese vacationers often book package tours, so Disney can launch tour package which include restaurant, theme park and others to fit their cultures. Next, Disney must localize on the different languages from different countries. From the case, Disney provides Tamil language and Indian version in India. Because of the language localization, the customize film in Indian version is very successful in India. Besides India, Disney had localized a lot of country like Russia. In Russian market, Disney launches a Russian version of High School Musical for the local people and its work very well. Besides that, Disney also localize in color and the Chinese culture. Disney had studied the culture, belief, value of Chinese. From the case, during the year...
Words: 375 - Pages: 2
...English 200 Section 049 Christopher Shipman “Too Excited To Sleep” Advertisements range from billboards to television commercials to jingles on the radio. Advertising companies have become adept at using images to grab the audience’s attention and implanting the subtlest of subliminal messages to keep the image of their products in the conscious and subconscious thoughts of the audience for extended periods of time. The Disney commercial, “Too Excited To Sleep” depicts two children that are supposed to be in bed but instead are whispering about their expectations of the trip to Disney World they are soon to take. The mother comes in and tells them to go to sleep, to which one of the children responds, “We’re too excited to sleep!” The commercial continues on to scenes of Disney World’s attractions and is concluded by the mother of the children asking the father if he’s asleep. At this point, the father responds, “No, I’m too excited to sleep.” By analyzing the use of image, humor, and fantasy in Disney’s commercial titled “Too Excited To Sleep” it is clear that the company successfully argues that Disney World is a desirable destination for adults, children, and families. In Disney’s commercial “I’m Too Excited To Sleep”, the advertisers use the imagery of fun and fantasy for all. The use of the family that is too excited to sleep gives the audience a mental image such as Santa visiting and other events that keep them awake from excitement. The scenes of exciting rides...
Words: 889 - Pages: 4
...increased profits in the past decade (The Walt Disney Company, 2012). The biggest weakness that Disney has identified is that 75% of their revenue in 2011 was generated from customers in the U.S. and Canada. This is an opportunity for expansion of their operations to bring Disney entertainment to other parts of the world (The Walt Disney Company, 2012). The opportunities that Disney can develop include expanding their presence in emerging economies including Russia, China, Asia Pacific and India. Additionally, the distribution agreement they signed in 2012 with Comcast will allow them to expand their presence in the cable television market. This includes their cable network channels such as the Disney Channel, Disney Junior, Disney XD, ABC, ABC Family, and 12 unique ESPN channels (The Walt Disney Company, 2012). The threats that Disney must focus on is their steep...
Words: 724 - Pages: 3
...What is Walt Disney Company’s corporate strategies? Creating high family context exploiting technology innovation to make entertainment experiences more memorable internal expansion Disney’s enhances the capabilities and resources of its core animation business with the addition of new animation skills and characters with accusations of pixar and Marvel use theme parks and resorts as a way to enter into new markets ESPN, ABC, Mirimax films, the Anaheim Angels, Fox Family Channel, Resorts and parks, Cruise lines, retail stores, interactive game division, creating new videos, Marvel, use of technology through internet and smartphone apps international expansion What is the long term attractiveness of business segments in Disney’s business portfolio? Media Network: 8.9 Attractive market projected growth rate and size, intense competition, many opportunities and threats, cross industry strategic fit, large resource requirements, seasonal changes, social, political, regulatory and environmental factors, industry profitability are all high lower industry business risk Parks and Resorts: 7.68 Attractive market projected growth rate and size, intense competition, cross industry strategic fit, seasonal changes, social, political, regulatory and environmental factors, industry profitability are all highly effective factors Moderate opportunities and threats and lower business risks Consumer Products: 6.65 Attractive High cross industry fit, resource requirements, seasonality...
Words: 877 - Pages: 4