...CASE ANALYSIS: CLASSIC PEN COMPANY The Classic Pen Company, initially a low cost producer of blue and black ink pens, decided to expand its product line by introducing red and purple pens into the market. Utilizing the same machinery and technology, the company produced red pens at a three percent premium and purple pens at a ten percent premium. The transition to the increased production requirements have not been fluid and the profitability of the company is not at the level management previously envisioned. The controller reviewed the most recent financial reports for Classic Pen Company and is disappointed with the results. Prior to production of the red and purple pens, total indirect costs were less than direct labor costs. All indirect costs were accumulated at the factory level and assigned to products based on direct labor costs. Prior to the introduction of the red and purple pens, the overhead rate was two hundred percent of direct labor costs. After the production of the red and purple pens, the overhead rate was three hundred percent of direct labor costs. The profit margin of Classic Pen Company decreased from twenty percent to 13.5 percent. The cost system used by Classic Pen Company has historically allocated overhead costs on the basis of direct labor costs. The current financial data has led the controller to question the current overhead cost structure. Their current costing system reports identical overhead percentages for the black, blue...
Words: 725 - Pages: 3
...tools and techniques in the hands of primary users in making business decisions. Specific topics include cost behavior analysis, cost management systems, relevant cost analysis, performance measurement, and value-based management control systems. The course also includes presentations in teams whereby the students apply the course material. Course objectives At the conclusion of this course the student should be able to communicate cost information orally and in writing and should demonstrate managerial level analysis and decision making in the following areas: 1.Cost-Profit-Volume Analysis 2.Master budgeting 3.Relevant revenues 4.Management control systems 5.Performance measurement 6.Activity based costing 7.Job order costing 8.Ethical issues and the impact of Sarbanes-Oxley 9.The use of production data and information technology to solve business problems Text and Course Materials 1.Horngren, Foster & Datar “Cost Accounting A Managerial Emphasis”, Twelfth Edition, Prentice Hall, 2006 2.Harvard Business School Case 9-198-117 Rev. September 17, 1998, “Classic Pen Company: Developing an ABC Model” 3.Harvard Business School Case 9-197-097 Rev. June 11, 2003, “Prestige Telephone Company” 4.Harvard Business School Case 0-100-066 June 7, 2000, “Hollydazzle.com” 5.Calculator 6.Laptop computer Grading Homework Class participation Classic Pen case Prestige Telephone case...
Words: 897 - Pages: 4
...1. CLASSIC PEN COMPANY DEVELOPING AN ABC MODEL GROUP V1 (SECTION 4) HARISH B 13419 ANINDYA GANGULY 13406 ANURAG BOTHRA 13411 PRAGATI CHAUHAN 13435 RENJIT THOMAS 13440 Cost Accounting Case analysis 2. Case Background ¨ Classic Pen was a low-cost producer of traditional Blue and Black pens ¨ Profit margins were over 20% of sales ¨ Five years earlier Red pens were introduced at 3% premium ¨ Recently Purple pens were introduced at 10% premium. 3. Issues faced by Management ¨ Red and Purple pens seem more profitable, but overall margin is coming down ¨ Process for Red and Purple pens require more set up time ¨ A lot of time spent on scheduling and purchasing activities 4. Costing system of Classic Pen ¨ All indirect costs were aggregated at plant level and allocated to products based upon the direct labor cost ¨ The overhead rate is 300% of direct labor cost ¨ Before Red and Purple pens were introduced, the overhead rate was only 200% of direct labor cost 5. Traditional Costing Method Traditional Income statement Blue Black Red Sales Material costs Direct labour Overhead @300% Total operating cost Total operating income $75,00 0 $25,00 0 $10,00 0 $30,00 0 $65,00 0 $10,00 0 Purple Total $60,00 0 $20,00 0 $8,000 $13,95 0 $4,680 $1,650 $150,600 $550 $50,230 $1,800 $200 $20,000 $24,00 0 $52,00 0 $8,000 $5,400 $600 $60,000 $11,880 $1,350 $130,230 $2,070 $300 $20,370 6. Activity Based Costing ¨ ¨ Indirect labor ¤ 50% of the indirect labor costs are caused by Production run ¤ 40% of...
Words: 881 - Pages: 4
...Business School 9-198-117 Rev. September 17, 1998 Classic Pen Company: Developing an ABC Model The Classic Pen Company Case Jane Dempsey, controller of the Classic Pen Company, was concerned about the recent financial trends in operating results. Classic Pen had been the low-cost producer of traditional BLUE pens and BLACK pens. Profit margins were over 20% of sales. Several years earlier Dennis Selmor, the sales manager, had seen opportunities to expand the business by extending the product line into new products that offered premium selling prices over traditional BLUE and BLACK pens. Five years earlier RED pens had been introduced, which required the same basic production technology but could be sold at a 3% premium. And last year PURPLE pens had been introduced because of the 10% premium in selling price they could command. But Dempsey had just seen the financial results (see Exhibit 1) for the most recent fiscal year and was keenly disappointed. The new RED and PURPLE pens do seen more profitable than our BLUE and BLACK pens, but overall profitability is down and even the new products are not earning the margins we used to see from our traditional products. Perhaps this is the tougher global competition I have been reading about. At least the new line, particularly PURPLE pens, is showing much higher margins. Perhaps we should follow Dennis’ advice and introduce even more specialty colored pens. Dennis claims that consumers are willing to pay higher...
Words: 1708 - Pages: 7
...decision making and performance evaluation. COURSE LEARNING OBJECTIVES: The primary objectives of this course are: 1. To develop an understanding of the costing, cost calculation. 2. To develop understanding of application of different techniques of cost allocation. 3. To understand the relationship between cost and volume and application of this in making different decisions. 4. To develop ability to make different decisions by using accounting information. 5. To understand the application of budgeting and standard costing as controlling tool. 6. To apply the different tools of management accounting for performance appraisal. To achieve these objectives, teaching focus will be on conveying the specific concepts and develops analysis capabilities without losing the general management perspective. COURSE MATERIALS: The course packet is ready for you to purchase at the Resource Center. IT IS ESSENTIAL FOR EVERYONE TO PURCHASE THE COURSE PACKET. This...
Words: 921 - Pages: 4
...5 HND Diploma Business/Pearson BTEC Level 5 HND Diploma in HospitalityManagement | Unit 33: Small Business Enterprise | Student Name | Student No. | | | Assessor name | Dr Francis Offeh | Date of Issue | Completion date | Submitted on | 27/01/2014 | 07/03/2014 | | Assignment title Cambridge Satchel Company LearningOutcome | Learning outcome | Assessment criteria | In this assessment you will have the opportunity topresent evidence that shows you are able to | TaskNo. | Evidence(Page no) | LO1 | Be able toinvestigate the performance of a selected small business enterprise | 1.1 | Produce a profile of aselected small business identifyingits strengths and weaknesses | 1 | | | | 1.2 | Carry out an analysis of the business using comparativemeasures of performance | 1 | | LO2 | Be able to proposechangesto improve managementand businessperformance | 2.1 | recommend with justification, appropriate actions toovercome the identified weaknesses in the business | 2 | | | | 2.2 | analyse ways in which existing performance couldbemaintained and strengthened | 2 | | | | 2.3 | recommend with justification,new areas in which the business could be expanded | 2 | | LO3 | Be able to revise | 3.1 | produce an assessment of existing business objectives | 3 | | | businessobjectives and plans to incorporate proposed changes | | and plans | | | | | 3.2 | revise business plans to incorporate appropriatechanges | 3 | | | | 3.3...
Words: 2673 - Pages: 11
...* 2 BRAND ANALYSIS OF ROYAL ENFIELD Acknowledgement We would like to thank all the people who were involved with this project and whose support and encouragement helped us complete the project. Indeed working on this project has been a truly enriching experience for us as a team. We are extremely grateful to Professor R.Kamle for entrusting our group with this huge responsibility. We wish to express a profound sense of gratitude to Professor Kamle for his generous suggestions and valuable insights, without which this project would not have been a success. Last but not the least, we would like to thank all our team members who participated and contributed towards the successful completion of this project. Entire Group * 3. Brand Analysis of Royal Enfield 3 Table Of Content 1. Executive Summary 2. Introduction 3. Product Line 4. Change In Strategy After Year 2000 5. Communication & Distribution 6. Missing Communication 7. Brand Analysis of Iconic Brand 8. Conclusion & Recommendation Executive Summary Executive Summary * 4. 4 BRAND ANALYSIS OF ROYAL ENFIELD Executive Summary The Research is aimed at the study of Royal Enfield Brand in Indian Markets – So far how they have performed and suggestions for them to grab more market share and be profitable. Every year, they have sold modest numbers but despite low numbers, they continue to command a position of respect and awe in the Indian motorcycle market. The objective of the study was to study...
Words: 9790 - Pages: 40
...A RESEARCH BASED PROJECT NEW PRODUCT LAUNCH IN THE MARKET DONE BY MONU JAIN COMPANY PROFILE: * Type: Public (BSE:ITC) * Founded: 24 August 1910a Radha Bazaar Lane, Kolkata, India * Headquarters: Kolkata, India * Key people: Yogesh Chander Deveshwar, Chairman K. Vaidyanath, Director, Partho Chatterjee, CFO * Industry: Tobacco, foods, hotels, stationery, greeting cards Products: Cigarettes, packaged food, hotels, apparel Employees: over 25,000 (2009) Website: http://www.i tcp ortal.com/ Forbes Global 2000 List: 987 rank (2009) * Sales ($ billion):3. 65 Profits($ billion):0.79 Assets($ billion):4.43 Market Value($ billion):13.48 * ITC S VISION | | Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company’s stakeholders. * ITC S MISSIONTo enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value | | ITC is one of India's foremost private sector companies with a market capitalization of over US $ 30 billion and a turnover of US $ 6 billion. ITC is rated among the World's Best Big Companies. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has...
Words: 6694 - Pages: 27
...Bone marrow examination | A Wright's stained bone marrow aspirate smear from a patient with leukemia. | Bone marrow examination refers to the pathologic analysis of samples of bone marrow obtained by bone marrow biopsy (often called a trephine biopsy) and bone marrow aspiration. A bone marrow aspiration should be performed as part of the same procedure. For patient safety and convenience, biopsies are usually performed on the posterior iliac crest. The biopsy specimen should measure at least 1.6 cm and, if it does not, consideration should be given to repeating the procedure, possibly on the contralateral iliac crest. Bone marrow examination is used in the diagnosis of a number of conditions, including leukemia, multiple myeloma, lymphoma, anemia, and pancytopenia. The bone marrow produces the cellular elements of the blood, including platelets, red blood cells and white blood cells. While much information can be gleaned by testing the blood itself (drawn from a vein by phlebotomy), it is sometimes necessary to examine the source of the blood cells in the bone marrow to obtain more information on hematopoiesis; this is the role of bone marrow aspiration and biopsy. { A trephine (/trɨˈfaɪn/; from Latin trypan, meaning to bore) is a surgical instrument with a cylindrical blade. It can be of one of several dimensions and designs depending on what it is going to be used for. They may be specially designed for obtaining a cylindrically shaped core of bone that can be used for...
Words: 3348 - Pages: 14
...TABLE OF CONTENTS Sr. Content Page no No 1. INTRODUCTION 6 1.1 Abstract 1.2 Problem Definition 1.3 Scope of Project 2. REVIEW OF LITERATURE 8 3. SOFTWARE REQUIREMENT SPECIFICATION 18 4. EXISTING SYSTEM 22 5. PROPOSED SYSTEM 26 6. TIMELINE CHART OF PROJECT` 32 7. FUTURE SCOPE 33 8. CONCLUSION 34 9. REFERENCES 35 1. INTRODUCTION 1.1 Abstract Virtual Classroom represents an innovative shift in the field of learning, providing rapid access to specific knowledge and information. It represents an interface between the students and a professor and provides personalized learning materials to the users. It offers a possibility to the attendees to share different resources at once and work with them as if they were at the same place where (real) resources are. In the system design, we use agents as entities that work on different tasks in the system. A set of agents of the same type is responsible for handling different users and their requests. The cooperation among agents is established through the act of exchanging messages. A wide variety of classroom techniques are being advocated to increase learning: active learning, collaboration, integration of assessment...
Words: 7999 - Pages: 32
...Is Social Networking Taking Over? Mandy Barnard INF103: Computer Literacy David Pittman March 15, 2015 Is Social Networking Taking Over? Social networking sites have been around since the mid-nineties and have continued to gain popularity through the years. New sites are constantly launching. Computers, smart phones and TVs, and tablets have become household fixtures for the majority of the population. We have incorporated them into our daily lives and routines and because of this we have access to social networking sites 24/7. Spending too much time on these sites creates the potential of a more sedentary lifestyle, becoming more egocentric, and withdrawing from activities and relationships. Social networking sites help connect us with the world, but with all that convenience and information comes a new set of social issues. In Introduction to Digital Literacy, Bowles (2013) gives in depths look at Web 2.0, its tools, and its significance. Web 2.0 gives us the ability to blog, tweet, email, and generally interact with others by using our computers or mobile devices. Bowles goes into some great detail about how to use social networking sites properly, protect one’s privacy, and the computer slang that has now become a part of the English language. While the exciting and wonderful world of social networking is celebrated, it is also mentioned that there is a dark side. One must be discrete and private about information they choose to share on social networking...
Words: 1646 - Pages: 7
.........4 DURING READING.....................................................................................................................6 SYNTHESIZING DISCUSSION QUESTIONS.......................................................................9 ENRICHMENT ACTIVITIES.......................................................................................................9 ACTIVITIES FOR USING THE FILM ADAPTATION........................................................ 11 ADDITIONAL RESOURCES................................................................................................... 13 ABOUT THE AUTHORS OF THIS GUIDE.......................................................................... 13 Also available in a black-spine Penguin Classics edition Copyright © 2014 by Penguin Group (USA) For additional teacher’s manuals, catalogs, or descriptive brochures, please email academic@penguin.com or write to: PENGUIN GROUP (USA) Academic Marketing Department 375...
Words: 7281 - Pages: 30
...Funmi Ogunwale Nasser Madini Samuel Sandeep Trang Huynh December 3, 2012 CONTENT I. Executive Summary II. Introduction III. Product background analysis IV. Egypt Overview V. Barrier to trade of Egypt VI. Market Analysis VII. Marketing Effort VIII. Logistic and Supply Chain analysis 1. Logistic Strength in Egypt: 2. Egypt Facts from Logistics Perspective 3. Creating a Supply Chain and Logistics Strategy a. Determining the Store Location and Capacity b. Transportation and Storage c. Logistic partnerships d. Logistic Enterprise and Measurement 4. Risk Management Plan for Supply Chain and Logistics IX. IKEA Distribution Process to Egypt X. General document requirement for exporting I. Executive Summary IKEA is a home furnishing company with a fully integrated supply chain, including its own industrial groups – Swedwood and Swedspan. The IKEA Group, directly or indirectly, also owns retail centers, always with an IKEA store as unique anchor tenant. The IKEA Group works in four basic areas: range strategy & product development, production, supply and retail. The parent company of the IKEA Group of Companies, INGKA Holding B.V. is owned by Stichting INGKA Foundation in the Netherlands (The case of IKEA, 2004) At IKEA, the core vision is to create a better everyday life for the many people. IKEA business idea supports this vision by offering a wide range...
Words: 6597 - Pages: 27
...COMPARATIVE STUDY OF CONSUMER AND TRADE SALES PROMOTIONAL SCHEMES OFFERED BY BISCUIT BRANDS WITH SPECIAL REFERENCE TO ANMOL BISCUITS IN BAREILLY CITY Partial Fulfillment of the Requirements for the Award of Post Graduate Diploma in Management (Recognized by AICTE, Ministry of HRD, Govt. of India) By Mohd Zuvair PG- 120-30 Batch 2012-14 Under the guidance of Prof. Kamal K. Gupta Associate Professor, Department of Marketing Research INMANTEC, Ghaziabad Integrated Academy of Management and Technology Ghaziabad July 24, 2013 COMPARATIVE STUDY OF CONSUMER AND TRADE SALES PROMOTIONAL SCHEMES OFFERED BY BISCUIT BRANDS WITH SPECIAL REFERENCE TO ANMOL BISCUITS IN BAREILLY CITY Summer project submitted In Partial Fulfillment of the Requirements for the Award of Post Graduate Diploma in Management (Recognized by AICTE, Ministry of HRD, Govt. of India) By Mohd Zuvair PG- 120-30 INMANTEC Integrated Academy of Management and Technology Ghaziabad July, 2013 ACKNOWLEDGEMENT I owe a deep gratitude and heartfelt thanks to Dr Kamal K. Gupta, Associate Professor, Department of Marketing Research, INMANTEC B-School, Ghaziabad; who has encouraged and guided me throughout my research work. I also express my heartfelt gratitude to him for his unmitigated support, meticulous reviews, in depth inquiries and advice on work. It has added immense value to the report. I am extremely thankful to Mr. Mritunjay Sharma, General Manager Sales (North India)...
Words: 17773 - Pages: 72
...A ∑ This eBook is provided by www.PlentyofeBooks.net E= mc 2 Plenty of eBooks is a blog with an aim of helping people, especially students, who cannot afford to buy some costly books from the market. For more Free eBooks and educational material visit www.PlentyofeBooks.net Uploaded By Bhavesh Pamecha (samsexy98) 1 Handwriting Analysis The CompZete Basic Book NEW PAGE BOOKS A division of The Career Press, Inc. Franklin Lakes, NJ Copyright 0 1980 by Karen Amend and Mary S . Ruiz All rights reserved under the Pan-American and International Copyright Conventions. This book may not be reproduced, in whole or in part, in any form or by any means electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system now known or hereafter invented, without written permission from the publisher, The Career Press. HANDWRITING ANALYSIS ISBN 0-87877-050-X Printed in the U.S.A. by Book-mart Press To order this title, please call toll-fiee I-800-CAREER-1 (NJ and Canada: 201-848-0310) to order using VISA or MasterCard, or for fbrther information on books fiom Career Press. The Career Press, Inc., 3 Tice Road, PO Box 687, Franklin Lakes, NJ 07417 The author of this book does not dispense medical advice nor prescribe the use of any technique as a form of treatment for medical problems without the advice of a physician, either directly or indirectly. The intent of the author is only to offer information.of a general...
Words: 44082 - Pages: 177
