...1. Activity costing would be appropriate 1. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. As seen on previous case, this distortion happens when one product is manufacturing in high volume and the others are manufacturing in complexity as well as in low volume. In this situation Wall Décor should change its costing system for selling its high volume produced products whereas low-volume produced products have good profit. a. The company has three different products and each uses different resources and so ABC would given a better allocation b. ABC would relate costs to the activities and so would make cost control better. 2. The activity based rates are Activity Overhead Driver Total Activity Activity Rate Picking Prints 36,000 Number of Prints 102,000 0.30 per print Inventory Selection and Management 91,700 Number of components per print item 131,000 0.70 per component Website Optimization- Unframed 25,800 Number of prints at capacity 100,000 0.26 per print Website Optimization- framed 103,200 Number of prints at capacity 25,000 4.13 per print Framing and Matting costs 123,900 Number of components at capacity 59,000 2.10 per component 375,200 3. The cost using ABC is In the first stage we allocate the overhead cost to products a. Lance Armstrong...
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...|Case 2 | | Greetings Inc.: Activity-Based Costing | |This case is from the book: Managerial Accounting: Tools for Business Decision | |Making, 5th Edition | |Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso | |©2010 | |And was answered by some students. | | | | | 1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product line, Wall Decor, which permits them to grow without expanding their physical stores; however, they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line, which we know calls for an ABC system. The main reason to move to ABC though, I’d say, would be because it will allow management to make better decisions and move away from the “cash machine” and “lemonade stand” metaphor simply because overhead costs will be allocated in such...
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...Managerial Decision Making, Case 2, Greetings Inc. Activity Based Costing |Case 2 | | Greetings Inc.: Activity-Based Costing | |This case is from the book: Managerial Accounting: Tools for Business Decision | |Making, 5th Edition | |Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso | |©2010 | |And was answered by some students. | | | | | 1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product line, Wall Decor, which permits them to grow without expanding their physical stores; however, they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line, which we know calls for an ABC system. The main reason to move to ABC though, I’d say, would be because it will allow management to make better decisions and move away from the “cash machine” and “lemonade stand” metaphor simply because overhead costs will be allocated in such a way that corresponds to either framed or unframed prints instead of considering the same overhead for both products. By doing so managers will be able to price the prints competitively while still maintaining a profitable margin. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. Wall Décor should change its costing system for selling its...
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...Stanley Misty Mitchell, Derek Cowan, and Katherine Miles Accounting 203 Jim Stanley Greetings Inc. Greetings Inc. 1. Wall Décor should use the ABC (Activity-Based Costing) system because there is some significant difference between their framed and unframed products. Each of the four activities Wall Décor produces and sells have different profits and costing. With the Activity-Based Costing they can charge different prices and show how each activity is doing financially. 2. Compute the activity overhead rates for each activity: Activity 1) 91,700/131,000 = .70 Activity 2) 129,000/125,000 = 1.03 Activity 3) 123,900/59,000 = 2.1 Activity 4) 375,200/260,000 = 1.44 3. Product costs for each: a) Lance Armstrong unframed print. b) John Elway print in steel frame, no mat. c) Lambeau Field print in wood frame with mat. 4. In case 1 for Greetings, the overhead allocations using a traditional volume-based approach were $3.36 for Lance Armstrong, $4.48 for John Elway, and $5.60 for Lambeau Field. The total product costs from case 1 were Lance Armstrong $17.36, John Elway $33.48, and Lambeau Field $48.10. The overhead allocation rate for unframed prints, such as the unframed Lance Armstrong print in question 3, decreased under the ABC compared to the amount of overhead that was allocated under the traditional approach in case 1. Why is this the case? What are the potential implications for the company? The overhead allocation for unframed...
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...Managerial Decision Making, Case 2, Greetings Inc. Activity Based Costing |Case 2 | | Greetings Inc.: Activity-Based Costing | |This case is from the book: Managerial Accounting: Tools for Business Decision | |Making, 5th Edition | |Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso | |©2010 | |And was answered by some students. | | | | | 1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product line, Wall Decor, which permits them to grow without expanding their physical stores; however, they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line, which we know calls for an ABC system. The main reason to move to ABC though, I’d say, would be because it will allow management to make better decisions and move away from the “cash machine” and “lemonade stand” metaphor simply because overhead costs will be allocated in such a way that corresponds to either framed or unframed prints instead of considering the same overhead for both products. By doing so managers will be able to price the prints competitively while still maintaining a profitable margin. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. Wall Décor should change its costing system for selling its high volume...
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...CHAPTER 3 LEARNING OBJECTIVES After studying Chapter 3, you should be able to: Distinguish between process costing and job-order costing and identify companies that would use each costing method. 2. Identify the documents used in a job-order costing system. 3. Compute predetermined overhead rates and explain why estimated overhead costs (rather than actual overhead costs) are used in the costing process. 4. Record the journal entries that reflect the flow of costs in a job-order costing system. 5. Apply overhead cost to Work in Process using a predetermined overhead rate. 6. Prepare schedules of cost of goods manufactured and cost of goods sold. 7. Compute under- or overapplied overhead cost and prepare the journal entry to close the balance in Manufacturing Overhead to the appropriate accounts. 8. (Appendix 3A) Explain the implications of basing the predetermined overhead rate on activity at capacity rather than on estimated activity for the period. SYSTEMS DESIGN: JOB-ORDER COSTING OVERAPPLIED/UNDERAPPLIED Cris Griffiths Guitar Works of Saint Johns, Newfoundland, focuses on repair work and building custom guitars. Late one night while disassembling yet another guitar, Griffiths had a vision of a single bracing piece instead of the three-dozen separate internal reinforcements acoustic guitars typically have. “It was a simple idea that was easy to flesh out, but turning it from an idea into...
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...Olin Business School Washington University S-02-001 Published: 2002 Revised: 2009 Disney Corporate Strategy (A) Barbarians at the Magic Kingdom’s Gate* Introduction The next big takeover fight – and it would be a beauty – may involve Walt Disney Productions. By the time you get this issue, Disney’s defense strategy may already be unfolding. But it will produce no quick victory for Disney even if a white knight comes along, and even if the principle attacker, Saul Steinberg, can be bought off. One by one, Hollywood’s great studios have been plucked by the smart out-of-town moneymen. Paramount by the late Charles Bluhdorn. Twentieth Century-Fox by Marvin Davis and Marc Rich. MGMUnited Artists by Kirk Kerkorian. Columbia by Coca-Cola. Now, it may be Disney’s turn. But Disney will not go quietly. - Forbes, June 4, 1984 Ron Miller, Disney Productions’ CEO reflected on the remarkable events of the past several months. Disney, the symbol of wholesome family entertainment, had become the target of a hostile takeover attempt by a well-known raider, Saul Steinberg. Steinberg now owned 12% of the firm and was threatening to acquire more. While Miller had orchestrated several defensive maneuvers, Steinberg had now announced a public tender offer to purchase 49% of the equity at a price that was a 45% premium over where the stock had been prior to the raid. To fund this purchase, Steinberg was promising to sell the film library and certain real estate assets to outside investors...
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...Thesis paper on problems & prospects of telecommunication industry & its Marketing Strategies Executive Summary In today’s competitive business environment, mobile operators have to compete in the industry by facing the problems and overcome it, taking initiative considering the prospects of the industry, and finally taking marketing strategy for the customers and overall the industry. If Government, authorities, companies will give attention in this sector then whole industry will be benefited as well as general people, country and companies. The main objective of this thesis paper is to show the problems and prospects of telecommunication sector and its marketing strategies as individual company taking the steps time to time. It can be said that the Bangladesh telecom market has a lot of potential to offer considering strategically ignorable or somehow alterable threats. The market looks very potential and prospective. Lots of opportunities are waiting. CHAPTER 1 1.1 Introduction: Telecommunication Sector in Bangladesh: The liberalization of Bangladesh’s telecommunications sector began with small steps in 1989 with the issuance of a license to a private operator for the provision of inter alia cellular mobile services to compete with the previous monopoly provider of telecommunications services the Bangladesh Telegraph and Telephone Board (BTTB). Significant changes in the number of fixed and mobile services deployed in Bangladesh occurred in the late 1990s and...
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...determining inventory quantities. 2. Explain the basis of accounting for inventories and apply the inventory cost flow methods under a periodic inventory system. 3. Explain the financial statement and tax effects of each of the inventory cost flow assumptions. 4. Explain the lower of cost or market basis of accounting for inventories. 5. Compute and interpret the inventory turnover ratio. 6. Describe the LIFO reserve and explain its importance for comparing results of different companies. Summary of Questions by Study Objectives and Bloom’s Taxonomy Item SO BT Item SO BT Item SO BT Item SO BT Item SO BT Questions 1. 1 C 6. 2 AP 11. 2 K 16. 4 AP 21. 6 C 2. 1 K 7. 2 C 12. 3 C 17. 4 K 22. 7 C 3. 1 K 8. 2 C 13. 3 C 18. 2 K 23. 7 C 4. 1 C 9. 2 K 14. 3 C 19. 3 C 24. 8 AN 5. 1 C 10. 2 C 15. 4 C 20. 5 AN Brief Exercises 1. 1 C 3. 2 AP 5. 3 AP 7. 5 AP 9. 7 AP 2. 2 AP 4. 3 C 6. 4 AP 8. 6 C 10. 8 AN Exercises 1. 1 AN 4. 2 AN 7. 2, 3 AP 10. 5, 6 AP 13. 8 AN 2. 1 AN 5. 2 AP 8. 5 AP 11. 7 AP 14. 8 AN 3. 1 K 6. 2, 3 AN 9. 4 AP ...
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...BCAP 3200 Term Project Implementation Plan For Advanced Health Solution Instructor Instructor Name Students Student #1 Student #2 Student #3 Student #4 Student #5 Student #6 Table of Contents Executive Summary 2 Company Definition 3 Products and Services 4 BIOFLEX LOW INTENSITY LASER 4 MASSAGE THERAPY 5 NUTRITIONAL SUPPLEMENTATION 6 COLONICS THERAPY 6 Organization Chart 8 Sonia Bryl 8 Ksenya Hudym 8 Jason Hudym 9 Company Price List 10 SOP’s 11 New Patient Welcome Letters 11 Routine Patient Correspondence 11 Outgoing Mail 12 New Patient Procedure 12 Current Patient Procedure 13 Appointment Making Procedure 13 Reminder Call Procedure 14 Therapy Session Procedure 14 Billing and Collections 15 Referring Accounts to Collections Procedure 16 Cancellations and No-Shows Procedure 16 Inventory Reorder Procedure 17 Inventory Restocking Procedure 17 Security Considerations 18 Network Security 18 Internet Security 18 Patient Records Security 19 Financial Records Security 19 Legal Considerations 20 Disclaimer: 20 Privacy Issues: 20 Copy Right Laws: 20 Systems Integration 21 Simply Accounting Basic 2007 Analysis 21 Medi Tech LILT Analysis 22 Website & Content Management Analysis 23 Customer Relationship Management Anaylsis 24 Network Review and Analysis 26 ...
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...Journal of Intelligence Studies in Business JISIB is a peer review no-fee Open Access Journal. The journal publishes articles on topics such as Market Intelligence, Business Intelligence, Competitive Intelligence, Scientific and Technical Intelligenceand Geo-economics and their equivalent terms in other cultures. E.g. Intelligence Èconomique in France, Omvärldsanalys in Sweden or Konkurrenz-/Wettbewerbsforschung in Germany. This means that the journal has a managerial as well as an applied technical side (Information Systems), as these are now well integrated into real life Business Intelligence solutions. By focusing on business applications the journal do not compete directly with journals of Library Sciences or State/National or Military Intelligence studies. The journal do publish articles on Knowledge Management and Knowledge Transfer even though these are well developed areas with their own journals. JISIB occupies a niche. It currently caters to a defined group of scholars of some 400+ active individuals. It is supported by some estimated 5.000+ practitioners. It caters to specific conferences (ECIS,SIIE, VSST, SCIP, ITICTI, EBRF, ICI, ECKM, INOSA) where both academics and practitioners meet regularly. These conferences turn out some 300+ articles annually, of which some estimated 50+ can be considered potential full length scientific articles. JISIB will have 3 issues a year with about 5-10 articles in each. To strengthen the tie to practitioners a special...
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...Holst, SMAC Manager, Management Accounting Guidelines, for his continuing project supervision and to the members of the focus group (including MAC members Dennis Daly and Thomas Huff) for contributing to the improvement of the final document. Copyright © 1996 Institute of Management Accountants All rights reserved Statements on Management Accounting PRACTICE OF MANAGEMENT ACCOUNTING Value Chain Analysis for Assessing Competitive Advantage TABLE OF CONTENTS I. II. III. IV. Rationale . . . . . . . . . . . . . . . . . . . . . . . 1 Scope . . . . . . . . . . . . . . . . . . . . . . . . . 1 The Value Chain Defined . . . . . . . . . . . . .1 Competitive Advantage and Customer Value . . . . . . . . . . . . . . . . . . .2 V. The Role of the Management Accountant . . . . . . . . . . . . . . . . . . . . . . .4 VI. The Value Chain Approach for Assessing Competitive Advantage . . . . . .5 Internal Cost Analysis . . . . . . . . . . . . . . .5 Internal Differentiation Analysis . . . . . . .10 Vertical Linkage Analysis . . . . . . . . . . . .13 VII. Strategic Frameworks for Value Chain Analysis . . . . . . . . . . . . . . .17 Exhibits...
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...------------------------------------------------- Study on SAP Training Satisfaction of the Students ------------------------------------------------- A Research Paper Presented to The General Education and Accountancy Department In Partial Fulfillment of the Requirements for the Course in Research Submitted by: Ronel Katrina Kishia Marie Nyalyn Reymund Elmer Rennaly Ruby Angelica Mae Anne TABLE OF CONTENTS Title Page 1 Acknowledgment 2 Chapter I Introduction 4-7 Background of the study 8 Framework of the Study 9-11 Statement of the Problem 11-12 Significance 13 Scope and Delimitation 14 Definition of Terms 15 Chapter II Review of Related Literature 17-21 Chapter III Methodology 22-24 Chapter IV Presentation, Interpretation and Analysis of Data 25-32 Chapter V Summary of Findings, Conclusions and Recommendations 33-36 References 37-38 Appendices Appendix 1 Schedule of Expenses 39 Appendix 2 Letter of Approval 40-41 Appendix 3 Letter to Respondents 42 Appendix 4 Questionnaire 43-46 Curriculum Vitae 47-55 CHAPTER I Problem and Its Background INTRODUCTION Companies nowadays use systems that would help them streamline operations and improve their customers’ experience to enhance their competitive position and drive growth. By which the SAP or Systems, Applications, and Products in Data Processing, a leading...
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...DYNAMICS OF SUPPLY CHAIN MANAGEMENT AN APPROACH TOWARDS EFFECTIVENESS & EFFICIENCY OF SUPPLY CHAIN MANAGEMENT AT ITC LIMITED, Bangalore “A project report submitted in partial fulfillment of the requirement for the award of MBA” BY T.Lakshmi (02XQCM6061) 8QGHU 6XSHUYLVLRQ WKH RI Dr.N.S.Mallavali Principal, M.P.Birla institute Of Management Mr. Savio Suveire Branch Finance Manager ITC Limited, Bangalore. Mr. Vineeth Vishwambharam Asst. Branch Manager ITC Limited, Bangalore M.P.Birla Institute Of Management D C B B @ 9 8 7 5 E¦¢#A¦©§64 ¡2 1 £( ¡ % ¡ " ¡ £ ¨ ¡ ¥ £ ¡ 3'¦0)'&¤$#¦!¤¡ ©§¦¤¢ DECLARATION I hereby declare that the research work embodied in the dissertation entitled “Dynamics of supply chain management at ITC Ltd., Bangalore “ has been carried out by me under the guidance and supervision of Dr. N.S.Malavalli, Principal,M.P.B.I.M , Bangalore (Internal Guide) and Mr. Savio ,Branch Finance Manager,ITC Ltd. ,Bangalore (External Guide). I also declare that the dissertation has not been submitted to any University/Institution for the award of any Degree/Diploma. Place: Bangalore Date: (T.Lakshmi) ACKNOWLEGEMENT I thank V.S.Vaidhyanathan,Sr. Vice President Corporate Affairs ITC Ltd. Delhi, and Mr. Thomas Mathew ,H.R Manager of ITC Ltd. Bangalore, for giving me an opportunity to do research in their company. I extend grateful thank to Mr.Vineeth Vishwambharam, Asst Branch Manager and Mr.Savio Suverrie...
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...* EXECUTIVE SUMMARY * MISSION STATEMENT * PURPOSE OF BUSINESS * BUSINESS GOALS * DESCRIPTION OF BUSINESS * OPPORTUNITIES AND STRENGTHS * CRITICAL RISKS AND PROBLEMS * MARKETING * OPERATIONS * MANAGEMENT * FINANCIAL EXECUTIVE SUMMARY The interest by consumers in the coffee house industry is sweeping the country. Coffee Circus is positioned to bring this to the Northwest Santa Fe area. To date it has been confined to the Central and East areas. Coffee Circus will provide a friendly, comfortable atmosphere where the customer can receive quality food, service and entertainment at a reasonable price. The coffee house will offer a variety of choices to the customers. Coffee and tea of all sorts will be offered. Juice, soda, and non-alcoholic beverages also will be available. Both wine and beer will be on sale. Coffee Circus will serve breakfast, lunch and dinner. The interior design of the building will focus on projecting a relaxed atmosphere. Coffee Circus will be divided into different areas. Some will have tables and chairs, another will have large antique stuffed couches and chairs, end tables, coffee tables, book shelves filled with books and magazines, tiffany style lamps and braided rugs. A PA system will be installed so that the music and entertainment can be heard throughout. A large selection of table games will be provided. There will be nightly entertainment featuring acoustic jazz, blues and folk music. On selected nights there...
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