...Dakota Office Products Case 1. Why was Dakota’s existing pricing system inadequate for its current operating environment? Some problems with the current operating environment include: * Profits only when clients placed large orders for cartons * Real drop of profit when many clients place small orders * Wrong cost determination for individual customers * Wrong cost determination for new services provided by DOP Dakota Office Product uses traditional costing system where direct and indirect costs are assigned and allocated to products and services delivered to customers. This is better for companies where production operations are high labor intensive and overhead costs are smaller part of total costs. Activity Based Costing is going to be better for Dakota Office Products. They will be able to calculate the cost of products and services in accordance to the activities involved and resources consumed. 2. Develop an activity-based cost system for Dakota Office Products (DOP) based on Year 2000 data. Calculate the activity cost-driver rate for each DOP activity in 2000. Activity cost-driver rates: Activity One: process cartons in and out of the facility Rate=(90% of Warehouse Personnel Expense + Cost of Items Purchased)/cartons processed Rate=(90%*2,400,000+35,000,000)/80,000= $464.5 /per carton Activity Two: the new desktop delivery service Rate=(10% of Warehouse Personnel Expense + Delivery Truck Expenses)/desktop deliveries Rate=(10%*2...
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...Case 4: Dakota Office Products Summary The general manager of Dakota Office Products (DOP), John Malone was concerned about the financial results for the fiscal year 2000. The company had suffered a historic first loss in spite of sales increase from its prior year as noted in the income statement in (Exhibit 1). DOP distributes office supplies and offers a comprehensive product line. DOP had an excellent reputation for customer service and response time. It had operated several distribution centers with storage locations and shipments pending customer orders. DOP normally ships its orders through commercial truckers and had recently attracted new business by offering a “desk top” option by delivering the packages of supplies directly to individual locations at the customer’s site. The company charges a premium price percentage for the service with hopes of improving margins in its highly competitive business. Products are priced to its end-use customers by first marking up the purchased product cost by about 15% to cover the cost of warehousing, distribution, and freight. Then it adds another markup for general and selling expenses as well as for profit. Pricing is adjusted according to relationship and competitive situations. In the year 1999, Dakota has introduced electronic data interchange (EDI) and a new internet site in 2000, which allowed an automated ordering system that did not require a manual input of data. Even after those...
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...Dakota Office Products Case Analysis Concern over a first year loss prompted a case study of the business operations of Dakota Office Products. Harvard Business School professor Robert S. Kaplan authored the case study as an illustration of use of activity based cost allocation and profitability (Kaplan, 2005). In the case presentation, John Malone, the General Manager of Dakota Office Products (DOP) commissioned analysis of the company’s operations and cost allocation practices; it focused on the company’s distribution center. Activities that emerged as cost drivers included: commercial freight shipping, personal delivery of orders under the Desktop Delivery program, warehouse handling and space, and several product ordering and entry activities. In this paper, the cost drivers were utilized to establish activity-based costing for DOP. Profitability for two current DOP customers was also analyzed for behavior patterns that might lead to or suggest improved pricing. Specific assignment questions were detailed and answered on the topic of relative profitability of the two customers. The objective of the analysis was to utilize learnings from the profitability calculations in order to make recommendations which would return DOP to profitable operation following the year of the unexpected loss. If the methods in this paper were utilized, it is felt to be a useful tool to assist DOP management in turning the company around. Method The assignment is summarized in this...
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...BUS 512A Case Questions Winter 2016 Wareham SC Systems, Inc. 1. What is (are) Wareham’s current revenue recognition policy (ies)? 2. Using the limited information in the case, do the industry characteristics or the current revenue recognition policies encourage manipulation of revenues? If so, how could Wareham manipulate its earnings? 3. For each of the specific contracts described in the case, please describe the best revenue recognition policy considering the criteria in SAB 101. (Onsetcom, Cataumet, Sandham, XLSemi, Technical Devices and Ashaban) TechMall.com’s Revenues Note Exhibit 3, Year 2 cash flows, the “add total change in cash” is an incorrect number. It should be $1,371,350. 1. What are the revenue streams for TechMall? 2. What drives each of the revenue streams and how much does Tech Mall expect to earn from each stream? 3. Given the level of activity in each revenue stream, compare the amount of revenue expected from each revenue stream with their actual revenue. Is TechMall getting their expected revenue from each of the revenues streams? 4. If actual revenue isn’t what TechMall expected, what might be causing the variation? 5. What can be done to better manage TechMall’s revenue? Great Dakota Bank: Online Banking 1. What are the advantages and disadvantages to Dakota Bank of the new online customers? (answer this questions without numbers) 2. Does it appear that the online customers add to Dakota’s bottom line? Compare the...
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...Seligram, Inc.: Electronic Testing Operations 1. What caused the existing system at ETO to fail? 2. Calculate the reported cost of the five components listed in Exhibit 6 using: a. The existing system. b. The system proposed by the accounting manager. c. The system proposed by the consultant. 3. Which system is preferable? Why? 4. Would you recommend any changes to the system you prefer? Why? 5. Would you treat the new machine as a separate cost center or as a part of the main test room? Bridgeton Industries: Automotive Component & Fabrication Plant 1. The official overhead allocation rate used in the 1987 model year strategy study at the Automotive Component and Fabrication Plant (ACF) was 435% of direct labor cost. Calculate the overhead allocation rate using the 1987 model year budget. Why do you get different numbers? 2. Calculate the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead allocation rates significant? Why have these changes occurred? 3. Consider two products in the same product line: Product 1 Product 2 Expected Selling Price $62 $54 Standard Material Cost 16 27 Standard Labor Cost 6 3 Calculate the expected gross margins as a percentage of selling price on each product based on the 1988 and 1990 model year budgets, assuming selling price remains constant and material/labor costs do not...
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...1. Why was Dakota’s existing pricing system inadequate for its current operating environment? - profits only when clients placed large orders for cartons - real drop of profit if many clients place small orders - wrong cost determination for individual customers - wrong cost determination for new services provided by DOP (to small charges for the “desktop” delivery, then the actual cost of it) 2. Develop an activity-base cost system for Dakota Office Products based on Year 200 data. Calculate the activity cost-driver rate for each DOP activity in 2000. Activity cost-driver rates: Activity One: process cartons in and out of the facility Rate=(90% of Warehouse Personnel Expense + Cost o Items Purchased)/cartons processed Rate=(90%*2,400,000+35,000,000)/80,000=464.5 $/per carton Activity Two: the new desktop delivery service Rate=(10% of Warehouse Personnel Expense + Delivery Truck Expenses)/desktop deliveries Rate=(10%*2,400,000+200,000)/2000=220 $/per carton Activity Three: order handling Rate=( Warehouse Expenses + Freight)/ number of orders Rate=(2,000,000+450,000)/(16,000+8,000)=102.08 $/per order Activity Four: data entry Rate=Order entry expenses/Order lines Rate=800,000/150,000=5.3 orders/per line 3. Using your answer to question 2, calculate the profitability of Customer A and Customer B. Activity One: process cartons in and out of the facility –> Number of cartons ordered Activity Two: the...
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...intact. Greenlight Accounting is that face-to-face, personal touch and military friendly accounting firm ready to assist with the most miniscule task associated in the process for all Federal, State and local compliances at low affordable and comparable rates. Expanding this one step further is the benefit of green accounting, which is also a service we will be providing, but one that is considered fairly new to the business world, as well as the accounting arena. Table of Contents I. Background and Green Marketing Product Strategy 4 II. Objectives, Pricing, and Goals 5 III. Strategic Plan 5 IV. Marketing Strategy 7 V. Competitive Analysis 9 VI. Customer Analysis 10 VII. Selling Tactics 10 VIII. Evaluation 11 IX. Conclusion 11 References 12 Background and Green Marketing Product Strategy Greenlight Accounting is a start-up organization based in Grand Forks, ND that caters to small firms, self-employment/home businesses and military members. The owners are comprised of three retired military members, all of which have over 20+ years each in management and accounting experience...
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...CMGT 442 ENTIRE COURSE To purchase this visit here: http://www.activitymode.com/product/cmgt-442-entire-course/ Contact us at: SUPPORT@ACTIVITYMODE.COM CMGT 442 ENTIRE COURSE Information Systems Risk Management Week 2 Individual Assignment Service Request SR-HT-001 (Huffman Trucking Benefits Election System) Prepare a 3- to 5-page paper describing the considerations necessary to address the possible security requirements and the possible risks associated with the Benefits Elections Systems being requested by the Service Request, SR-HT-001 for Huffman Trucking Company. Week 3 Individual Assignment Security Monitoring Prepare a 3- to 5-page paper describing the security monitoring activities that should be conducted in an organization with both internal IT (payroll, human resources, inventory, general ledger, and so on) and e-commerce (Internet sales and marketing) applications. The paper will include the rationale supporting each monitoring activity you propose and any recommended course of action to be taken when a significant risk is identified. Week 4 Individual Assignment Outsourcing Risks Prepare a 3- to 5-page paper that identifies the possible risks to an organization in each of the following outsourcing situations: a) the use of an external service provider for your data storage; b) the use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking; c) the use of a vendor...
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...Community Health C229 1 ! ! ! ! ! ! CKA Task 1 Sharon Wiggins Western Governors University ! ! ! ! ! ! ! ! ! ! Community Health C229 ! ! Date Spent ! ! 6/19/15 ! 6/19/15 ! 6/19/15 ! 6/29-7/2 ! 7/11/15 1200-1700 ! 8/30/15 1100-1600 ! 9/4/15 1100-1200 ! ! 9/9-10/15 0800-1700 0800-1200 ! ! Fieldwork Study Activity Location and Contact Time Windshield Survey Dakota County, Minnesota 10 Cultural Survey Dakota County, Minnesota 5 Scavenger Hunt Dakota County, Minnesota 10 Childhood Obesity attended conference, interviewed other attendees and exhibitors 8757 Rio San Diego Dr, San Diego, CA 92108 (619)692-3800 30 Festival of Farms attended festival interview with community members and exhibitors Lakeside Prairie Farm 20503 180th Ave Barrett, MN 56311 320-492-2526 5 Minnesota State Fair attended & interviews and surveys 1265 Snelling Ave St Paul, MN 55108 (651) 288-4400 5 Dr Koch interviewed Dr. Koch Physician Fairview Ridges Clinic 303 E Nicollet Blvd # 160 Burnsville, MN 55337 (952) 460-4000 1 Communities for Health attended conference, interviewed other attendees, exhibitors Duluth Convention Center 350 Harbor Dr Duluth, MN 55802 (218) 722-5573 12 1 Community Health C229 ! 9/12/15 1200-1500 ! ! 9/18/15 0800-1200 ! 9/19/15 0800-1300 Farm Fest attended, interviewed ...
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...battery-powered devices initiate the appearance and function of a conventional cigarette. This is done when the atomizer heats up the solution and provides a nicotine vapor, instead of smoke, to the user (Mayo Clinic, 2013). Many of the manufacturers of electronic cigarettes boast the safety of these products although there are little evidence supporting that claim. Nevertheless, people continue to purchase them, and it is important to start implementing stricter policies on them. The Family Smoking Prevention and Tobacco Control Act of 2009 gives the FDA authority to regulate the marketing, manufacture and sale of tobacco products (Products, 2013), but the original intent of the FDA is to regulate electronic cigarettes as therapeutic drug delivery devices because of the contents of the liquid. In 2010 the United States District Court of Appeals declares that electronic cigarettes should be considered tobacco products (Grana, 2013). Unfortunately, since this declaration, the FDA has not exercised regulatory authority over electronic cigarettes. A main reason for this is partly due to the government shutdown in October. Prior to this, the FDA has taken steps to provide a proposed rule to the Office of Management and Budget, which is currently reviewing it (Staff, 2013). In the absence of FDA regulation many states, localities, and the Department of Transportation have enacted their own policies to restrict electronic cigarettes, whether it be the sale to minors or the use of them...
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...Stephen Choi MF602 March 12, 2013 Walnut Venture Associates (A): RBS Group Investment Memorandum The RBS Group’s business seems promising and I suggest investing $1 million in the business, exiting in three years, that is, at the end of fiscal year 2000-2001. Milestones While the business seems quite promising, there are certain milestones RBS will need to achieve in the following three years. First, within the next month RBS will have to hire a vice president who will focus on sales since its second phase will focus on increasing sales to secure market share. While the current executives of RBS have done a great job, they will need additional expertise since the sales role will switch over to newly hired sales personnel of their regional offices. Also, RBS will need to find another $1million for its next round. Since Walnut Venture Associates can only raise $1million, it is imperative that RBS find another source of funding to power through its second phase of business. Considering the prospect of RBS and its well-established relationship with big technology firms, this should not be too much of a problem. Next, RBS will have to enter the third phase of expanding its business in foreign countries should begin in the beginning of fiscal year 2000-2001. Two years after phase two, its revenue flow is projected to become more stable and cash flow turns to profit. Therefore, this seems to be the right time to enter phase three and boost up its value one last time...
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...This case deals with the ethical dilemma that Tobacco manufactures face when selling tobacco products in third world countries. First, there is the ethical dilemma of business versus health. The opening and development of the tobacco business in Third World countries like China, Malaysia, Indonesia, India and Africa, is considered against the health consequences of tobacco use which according to an Oxford University epidemiologist, has estimated to cost 3 million lives annually rising to 10 million by 2050 without effective tobacco control program A second ethical dilemma is employment versus impoverishment, where the opportunities for work in the tobacco industry are considered against a background of malnutrition. This is a problem that is certainly worth consideration, but with those who have the power to change things reaping huge profits, I am not sure if anything will be done. 1. Use the model in Exhibit 1 as a guide and assess the ethical and social responsibility implications of the situation described Exhibit 1 is a decision tree. A model for incorporating ethical and social responsibility issues into multinational business decisions. The decisions are decided by the users’ responses to a number of relevant questions regarding the matter at hand. The first question the model asks is whether the decision efficiently optimizes the common good or benefits of the business firm, society, the economy, and the individual. From the tobacco business standpoint, the answer...
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...American Politics Final Exam Questions 1. In the design of the United States government, Congress was given the legislative power. It "makes the laws" for the nation. a. What procedure does the Constitution require for Congress to make law? Article I of the Constitution "all legislative powers herein granted shall be vested in a Congress of the United States, which shall consist of a Senate and a House of Representatives." The House and Senate are equal partners in the legislative process––legislation cannot be enacted without the consent of both chambers. First, any bill for raising money (such as by taxes or fees) must start out in the House. All bills must pass both houses of Congress in the exact same form. Bills that pass both houses are sent to the President. He can either sign the bill, in which case it becomes law, or he can veto it. In the case of a veto, the bill is sent back to Congress, and if both houses pass it by a two-thirds majority, the bill becomes law over the President's veto. b. Describe the legislative process utilized today, above and beyond the Constitutional requirements. The general process for making a bill into law is described in the Constitution. First, a bill needs to be drafted. You do not need to be a member of congress to draft a bill. For example lobbyists and other congressional staff can draft a bill, but only a member of congress can introduce legislation. Bills then get referred to standing committees. Once referred, the bill...
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...Course Syllabus College of Information Systems & Technology CMGT/442 Version 4 Information Systems Risk Management Copyright © 2010, 2009, 2008, 2006 by University of Phoenix. All rights reserved. Course Description This course identifies and defines the types of risks that information systems professionals need to consider during the development and implementation of computer based information systems. This course will survey remedies and prevention techniques available to address the risk areas present. Organizational policies and current regulatory considerations will also be examined relative to development, implementation, and use of computer based information systems. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. • Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Cooper, D. F., Grey, S., Raymond, G., & Walker, P. (2005). Project risk management guidelines: Managing risk in large projects and complex procurements. Hoboken...
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...textbook * Answer the all of the questions at the end of the case study Case Study – Amazon.com, Inc – Retailing Giant to High-Tech Player? 1. Complete a table on key ratios: * Current Ratio - Current Ratio = CA/CL What the current ratio does measures if the firm has enough resources to pay its debts over the next 12 months. Comparing current assets to current liabilities. Current Assets | Current Liabilities | Cash $10,500 | Accrued Expenses $6,000 | Credit receivables $11,000 | Accounts payable $7,000 | Inventories $15,000 | Taxes Payable $ 12,000 | Prepaid Expenses $16,000 | Current Mortgage $30,000 | Accounts Receivables 7,000 | | Marketable Securities $3,000 | | Total $62,500 | Total $55,000 | $62,000 – $55,000 = $7,000 * ROI% - ROI = NP after taxes/Total Assets Return on investments indicates the returns generated on total assets, and/or the overview profit on investment in percentage form. This formula below is calculated in Du Pont form; ROI = $16,000 / $200,000 = 16% Net Profit =$16,000 / $100,000 =8% Total Assets =$200,000 / $100,000 = 2 times ROI 8% * 2 times = 16% * ROE(%) - ROE = NP after taxes/Shareholder Equity The amount of net income returned as a percentage of shareholders equity. An example would be; ROE = ($18,000 ÷ $100,000) x ($100,000 ÷ $45,000) ROE = 18% x 2.22 ROE = 40% * Net Profit Margins (%) - NPM = NI/Revenue 2. Answer the following questions: * * Is Amazon...
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