...Do your organizations provide an environment which allows a sufficient degree of creativity? Provide support and response of your examples.? ABC has developed Creative thinking which is part of organization culture and following are major steps taken towards encouraging the creativity. As a service based company, ABC is lagging in creative thinking since last few years. Due to rapid changes in customer business and product development ABC realized the importance of creative thinking and took major steps towards implementing the right environment. Developed internal systems and integrated with main system called C3 (Creative, Collaborative and communicate) community group where resources can share, build and create ideas through internal talent pool. Formed creative/Innovative forum which is headed by architects, senior managers and technical panel. The goal of this panel is to provide support to individuals and team in situations of financial support, approvals, reviews, feedback and training. This process is motivated by individuals and teams in generating creative ideas, experimenting and presenting to the forum. Also this panel will allow taking certain amount of risk by individuals and accountable. Another major step is to consolidate existing knowledge management sources into centralized repository where resources can get technical and training sources, lessons learned and best practices for internal and customer centric. This knowledge base is used by teams for generating...
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...Case Study about Sun Life Financial Services Manalaysay, Levi Jhanine P. MG11A Prof. Rosalinda Lacerona Title of the case: Sun Life Financial Services Time Context: Summary/ Abstract Sun Life Insurance is an international insurance company, providing individual and corporate life insurance, group retirement services and benefit management services. The Canadian operations have offices located throughout Canada, with the head office in Toronto. The Group Claims division provides drug and dental claim management and claim adjudication to companies in Canada through its 4 main centres in Toronto, Ottawa, Edmonton and Montreal. Clients include the Federal Government, City of Toronto, Royal Bank of Canada and Magna International. Sun Life Canada alone had a customer base of 7 million. It had its stock listed on the stock exchanges of Toronto, New York, London and Manila. Sun Life’s presence in Hong Kong has been growing stronger and stronger over the past 100 years. Clear and sound policy formulation requires any company to have well defined business objectives, vision and mission. Sun Life Hong Kong aims to be one of the top five players in the Hong Kong market for both wealth management and insurance. In the present time, Sun Life manages assets in excess of $425 billion and has an employee base of more than 14,700 and few thousands of independent agents worldwide. By 2001, with revenues of C$ 16.7 billion, Sun Life Financial Services (Sun Life) had emerged...
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...Change...It'll Do You Good Change…It’ll Do You Good A Recommendation for Implementation of Activity-based Costing Joann Harper BU264: Managerial Accounting, Spring 2011 Dr. Henry Bryan April 13, 2011 Outline I. Introduction A. Comparison of traditional costing vs. activity-based costing B. Pros and cons of activity-based costing C. 4 companies selected for review i. General Electric ii. Dennison Manufacturing Co. iii. South-western Ohio Steel Inc. iv. Insurance companies D. Thesis Statement: An examination of four companies that have successfully implemented activity-based costing/activity-based management has led to my recommendation that transitioning to activity-based costing is the right move for our company. Although there are many benefits to activity-based costing, we would directly benefit from the relative ease of implementation for a company our size, the ability to view our product costs differently and target process improvements which in turn will lead to an improved line of products and allow us to be more competitive in our market niche. II. General Electric A. A brief history of activity-based costing B. Outcome of General Electric and activity-based costing III. Dennison Manufacturing A. How Dennison Manufacturing uses activity-based costing B. Outcome of Dennison Manufacturing’s...
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...ACTIVITY-BASED COSTING McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. ACTIVITY BASED COSTING Traditional costing system 1. Direct and indirect costs are allocated to process centres or major departments ABC System 1. The direct and indirect costs are allocated to activities like Purchases, Material handling, Producing the goods, machine set ups, Supervising production workers, Inspecting finished goods, Dispatching good to customers 2.Cost driver as base for allocation of overheads is based on cause and effect relationship between overheads and the overhead allocation base (the cost driver) Stores deptt – Labour hours or machine hours or units produced 3. There are many allocation bases as per activity chosen and cause and effect base relationship 1-2 2. Cost driver as base for allocation of overheads is not based on cause and effect relationship 3. There is only one cost driver Or OH allocation Traditional, Volume-Based Product-Costing System • Aerotech produces three complex printed circuit boards referred to as Mode I, Mode II, and Mode III. • The following information is obtained from company records: Mode I Production: Units Runs 10,000 1 run of 10,000 units Mode II 20,000 4 runs of 5,000 units Mode III 4,000 10 runs of 400 units 1-3 Traditional, Volume-Based Product-Costing System Additional information includes: Direct materials Direct labor Mode I Mode II Mode III $ 50.00 $ 90.00 $ 20...
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...STANDARD OPERATING PROCEDURE ABC COMPANY [pic] 1.Purpose To give instructions for the proper register and recording of Customer Orders through the new sales system operation in order to guarantee supplying of requirements and needs from our customers. 2. Scope ABC Company may use and apply new system technology for daily use by sales force team. They are used it to take customer orders and they avoid any other form to record information using manual process. 3. Responsibilities Vendor: Responsible for ✓ Register detail customer order information through the PDA (Personal Digital Agenda). ✓ Verify order status while is processing through the commercial system and notifies customer any further information regarding their requirements. ✓ Handle any customer claim and provides prompt solutions to them. ✓ Validates time services and management indicators. Cashier: Responsible for: ✓ Register purchase information into the administrative system after Vendors and Customer emit order confirmation. ✓ Record bill information regarding details of payment and financial customer information. ✓ Set data registered into the administrative system to transmit information into Accounting Department. ✓ Print receipt and forward to customer and departments related. 4. Procedures [pic] 5. Activities Description 1. Ask Products: Customer's action when they require or have a need from the...
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...Today digital or electronic communication makes up a great deal of world’s communication. The reasons behind that leap from written and hardcopy to softcopy communications has to do with technological advances and the speed in which individuals and businesses can now communicate accurately. The electronic media that surrounds the average consumer consists of television commercials, e-mail advertisements, Internet stores, paying bills and banking online, blogs, social sites, business ventures, and many other forms of electronic communication are taking over the way the world communicates. This paper will discuss E-mails importance, present three business-to-business messages taken from the text-book, analyze them and provide a message from ABC and an unfavorable reply XYZ Company sent. E-mails can be sent as a letter, memo, or as a document with an attachment. The convenience of e-mails is that the business has the option to send the message to one receiver or to multiple receivers simultaneously. The best thing about companies conducting business through e-mail is that the company will have a written record of the information sent. E-mail also allows a company to transmit complex information fast and conveniently in a matter of minutes across the world. In a descriptive analysis of the e-mail, an individual has multiple options to design the message in which he wishes to send. Analyzing message on Tobacco-free work facility This message was sent to stress out the risks of cigarettes...
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...Executive Summary Southeast Health Plans, Inc. is a service company that will provide health plan administrative services to self-insured employers. The company will concentrate on employers with 50 to 500 employees. Many of these employers have current HMO, PPO, or major national insurance carrier health plans. While the majority of employers with 500 or more employees have at least some element of self-insurance incorporated into their health care programs, our target market is often ignored by the major national insurance companies. While more than 80% of companies with 500 or more employees are self-insured, the management of Southeast Health Plans has identified that less than 25% of Atlanta area companies with 50 to 500 employees have self-insured plans. The market for self-insured and administrative services consist of those companies that are currently self-insured and companies that have other types of health plans that will be encouraged to shift to self-insurance. One factor in the transition to self-insurance is the availability of quality administrative and consultative services. Southeast Health Plans, Inc. is led by experienced management and has formed a strategic alliance with Blair Mill Administrator, a wholly-owned subsidiary of Blue Cross/Blue Shield of Pennsylvania, for the purpose of providing first class benefits management services to its target market. The key to success for Southeast Health Plans, Inc. will be the ability to attract the initial capital...
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...JBT Task 1 A1. Gaining market share is widely based on a company’s strategy and approach. When a company expands to the internet, it is important for them to have a purpose. For Pharmacy ABC (name changed to protect my customer), located in Columbus, Ohio, going online would be beneficial for several reasons. Advertising would help them focus not only on their current customers, but more so for the younger generations that have adapted to search and learn through technology. As their current customers get older and expire, these younger generations will become their customer base. By having a website, they will also be able to provide more education to their patients. The site may also provide answers and act as yet another form of customer service. Pharmacy ABC will be able to provide convenience for their patients by adding online refill availability which will save both time and money. While expanding total market size, they must continuously and actively defend its current business (Kotler and Keller, 2010). A2. When comparing competitor’s websites (CVS and Walgreens), both companies offer similar information to what Pharmacy ABC website should have, including: • Online Prescription Refill o Both competitors offer similar options • Product Promotion/Sales o Both Walgreens and CVS offer a weekly sales and promotions ticker • Medicare D Reporting o Walgreens does this well by allowing the customer to enter medications and see available plans that cover those...
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...5 Cost Allocation and Activity-Based Costing Systems L E A R N I N G O B J E C T I V E S After studying this chapter, you will be able to 1. Explain the major purposes for allocating costs. 2. Explain the relationship between activities, resources, costs, and cost drivers. 3. Use recommended guidelines to charge the variable and fixed costs of service departments to other organizational units. 4. Identify methods for allocating the central costs of an organization. 5. Use the direct, step-down, and reciprocal allocation methods to allocate service department costs to user departments. 6. Describe the general approach to allocating costs to products or services. 7. Use the physical units and relative-sales-value methods to allocate joint costs to products. 8. Use activity-based costing to allocate costs to products or services. 9. Identify the steps involved in the design and implementation of activity-based costing systems. 10. Calculate activity-based costs for cost objects. 11. Explain why activity-based costing systems are being adopted. 12. Explain how just-in-time systems can reduce non-value-added activities Cost Accounting System. The techniques used to determine the cost of a product or service by collecting and classifying costs and assigning them to cost objects. A university’s computer is used for teaching and for government-funded research. How much of its cost should be assigned to each task? A city creates a special police unit to investigate a series...
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...INTRODUCTION TO COST MANAGEMENT Activity-Based Costing and Management After studying this chapter, you should be able to . . . 1. Explain the strategic role of activity-based costing 2. Describe activity-based costing (ABC), the steps in developing an ABC system, and the benefits and limitations of an ABC system 3. Determine product costs under both the volume-based method and the activity-based method and contrast the two 4. Explain activity-based management (ABM) PART I 5. Describe how ABC/M is used in manufacturing companies, service companies, and governmental organizations 6. Use an activity-based approach to analyze customer profitability 7. Identify key factors for successful ABC/M implementation Beware of little expenses. A small leak will sink a great ship. Benjamin Franklin This chapter has a lot to do with implementing the spirit of Benjamin Franklin’s observation—in cost management terms—that it really does matter how accurately you calculate a cost. Why? Having accurate costs is important for a variety of reasons: a company might find that it has a difficult time determining which of its products is most profitable. Alternatively, it finds its sales increasing but profits declining and cannot understand why. Perhaps the company keeps losing competitive bids for products and services and does not understand why. In many cases, accurate cost information is the answer to these questions. Accurate cost information provides a competitive advantage...
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...C H A P T E R F I V E INTRODUCTION TO COST MANAGEMENT Activity-Based Costing and Management After studying this chapter, you should be able to . . . 1. Explain the strategic role of activity-based costing 2. Describe activity-based costing (ABC), the steps in developing an ABC system, and the benefits and limitations of an ABC system 3. Determine product costs under both the volume-based method and the activity-based method and contrast the two 4. Explain activity-based management (ABM) 5. Describe how ABC/M is used in manufacturing companies, service companies, and governmental organizations 6. Use an activity-based approach to analyze customer profitability 7. Identify key factors for successful ABC/M implementation PART I Beware of little expenses. A small leak will sink a great ship. Benjamin Franklin This chapter has a lot to do with implementing the spirit of Benjamin Franklin’s observation—in cost management terms—that it really does matter how accurately you calculate a cost. Why? Having accurate costs is important for a variety of reasons: a company might find that it has a difficult time determining which of its products is most profitable. Alternatively, it finds its sales increasing but profits declining and cannot understand why. Perhaps the company keeps losing competitive bids for products and services and does not understand why. In many cases, accurate cost information is the answer to these questions. Accurate cost information provides a competitive...
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...C H A P T E R F I V E INTRODUCTION TO COST MANAGEMENT Activity-Based Costing and Management After studying this chapter, you should be able to . . . 1. Explain the strategic role of activity-based costing 2. Describe activity-based costing (ABC), the steps in developing an ABC system, and the benefits and limitations of an ABC system 3. Determine product costs under both the volume-based method and the activity-based method and contrast the two 4. Explain activity-based management (ABM) 5. Describe how ABC/M is used in manufacturing companies, service companies, and governmental organizations 6. Use an activity-based approach to analyze customer profitability 7. Identify key factors for successful ABC/M implementation PART I Beware of little expenses. A small leak will sink a great ship. Benjamin Franklin This chapter has a lot to do with implementing the spirit of Benjamin Franklin’s observation—in cost management terms—that it really does matter how accurately you calculate a cost. Why? Having accurate costs is important for a variety of reasons: a company might find that it has a difficult time determining which of its products is most profitable. Alternatively, it finds its sales increasing but profits declining and cannot understand why. Perhaps the company keeps losing competitive bids for products and services and does not understand why. In many cases, accurate cost information is the answer to these questions. Accurate cost information provides a competitive...
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...substantial cost involved with its implementation. Using the module readings and the Argosy University online library resources, research the activity-based costing method. Use your research and/or your experiences as a working professional to complete this assignment. Respond to the following: If you have utilized an activity-based costing system in your former or current employment, describe how this system had been used. In your response, be sure to include your experience and position on the effectiveness of the activity-based costing system. Support your ideas by drawing on your readings and scholarly articles. If you have not encountered this type of system in your work experience, assume a company needs to switch to an ABC system. Describe the common cost drivers that could be used. How would the organization identify the cost drivers? How would the organization use them in the implementation of this system? You may use your former or current company for the analysis. Write your initial response in 3–4 paragraphs. Apply APA standards to citation of sources. By Saturday, June 21, 2014, post your response to the appropriate Discussion Area. Through Wednesday, June 25, 2014, review and comment on at least two peers’ responses. Do the following when responding to your peers: Read all posts from your peers. Explain how their experiences differ from yours. Provide substantive comments by contributing new, relevant information or...
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...Running head: ABC Corporation Online e-Business Growth Plan Online e-Business Growth Plan for ABC Corporation Valerian Coutinho Western Governors University Abstract ABC Corporation needs a new strategy to expand market penetration and grow annual revenues. This document details some of the strategies which can be utilized to build upon the current business model. The new e-business model will help the company build on the product differentiation strategy and also enable the company to create value added dependency for the current and new customers. The e-business model can also be used to improve the company’s product branding across the globe and can be used as a stepping stone into moving aggressively into new emerging markets as well as maintain and increase current market share in North America. Introduction ABC Corporation is a US based publically traded Discrete Manufacturer. ABC manufactures wheels and wheel-end components for the Commercial Vehicle Industry. Some of the products the company makes are Aluminum and Steel Wheels, Brake Drums, Hubs, Rotors and Slack Adjusters. Most of the products are used in the Class 5 to Class 8 Trucks, agricultural, specialty and military trucks. The company operates mostly in the North American (USA, Canada and Mexico) market with limited sales outside of North America. 55% of existing ABC sales come from the top 4 truck Original Equipment Manufacturer (OEM). The rest of the sales come from OES (Original Equipment Services)...
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...H & R Block is one of the largest and oldest service providers. The company was founded by brothers Henry and Richard Bloch in 1955. The company began franchising in 1956 and they went public in 1962. The company employed over 100,000 tax professionals that are trained both within the U.S. and worldwide. The company has prepared more than 550 million tax returns since the business started in 1955. One key important key to the company success is that they have a retail office within 5 miles of most Americans. You are able to do your taxes both in person and on-line because H & R Block offers these services. The tax-payer can chose to walk into an office and work face-to-face with the tax specialist, they can work totally on their own using the online or packaged do-it-yourself tax prep tools, or they can utilize the do-it-yourself software with unlimited help from and online tax professional. H & R Block will offer you a wide variety of tax consulting services. Straight forward tax return offers the most basic start which is simple. You are able to accomplished this either on-line or in house. H & R Block also offer “drop off” service. A small business service is offered by H & R which includes helping the preparer to navigate the tax requirement of running a business. This is done throughout the year and not just a year-end service. H & R offers a service called “Best of Both”. This is where you get the convenience of doing it online with tax support preparation from...
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