...Salvisberg – Annabelle Wephre STUDY CASE : WILKERSON COMPANY STUDY CASE : WILKERSON COMPANY Table des matières What is the competitive situation faced by Wilkerson ? 3 Given some of the apparent problems with Wilkerson’s cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense ? Why or why not ? 3 How does Wilkerson’s existing cost system operate ? Develop a diagram to show how costs flow from factory expense accounts to products. 4 Develop and diagram an activity-based cost model using the information in the case. Provide your best estimates about the cost and profitability of Wilkerson’s three product lines. What difference does your assignment have reported product costs and profitability ? What causes any shifts in cost and profitability ? 4 Based on your analysis for Question 4, what actions might Wilkerson’s management team consider to improve the company’s profitability ? 6 What concerns, if any, do you have with the cost estimates you prepared in the answer to Question 4 ? What other information or analysis would you want for better cost and profitability estimates ? 7 Wilkerson has been compensating salespersons with comissions on their gross sales volumes (less returns). Parker wonders whether the company should change this incentive system. 7 What is the competitive situation faced by Wilkerson ? The competitive situation...
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...ACCT5620W Contemporary Management Accounting Wilkerson Case Report * Contents Executive Summary 2 Competitive situation faced by Wilkerson 2 Wilkerson’s Existing Costing System Limitation & Possibility of Activity Based Costing 4 Cost Driver and rates under Activity-based Costing 6 Implication and Recommendations 8 Valves 8 Pumps 9 Flow controllers 9 Executive Summary Wilkerson traditional costing system seems to be too simplified. Using a single allocation base to allocate manufacturing overhead cost has understated the customized product (i.e. flow controller) cost while overstated the volume based produce (i.e. valves). Correct product cost can guide management a better strategic decision and better allocation of the company resources. We are going to analyze the difference between the traditional costing method and activity base costing and elaborate how the company management can react on it. Competitive situation faced by Wilkerson Wilkerson is a manufacturer of valves, pumps and flow controllers. Their target customers are manufacturers of water purification equipment. According to the case, the actual gross margin of flow controller; the most profitable production line, is 41%. It is the only production line outperforms the planned gross margin, which is 35%. Before studying the competitive situation, the followings are the descriptions of Wilkerson’s three products features, market situation and price setting. Valves Produced...
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...Aussie pies Anna Amphlett and Andrew Ferris has decided to startup a new business in Seattle, U.S.A under the name of Aussie Pies Inc. after their visit to Australia; where they discovered the meat pies, the national snack food of Australia and interested in starting up a business in U.S to produce and sell similar meat pies, The couple has decided to apply for a loan through a contact to establish a new business. Even though bank has tentatively agreed to provide the loan up to one million with 6% interest per year, still loan committee of the bank require business plan including complete set of projected financial statements for the first year of operations, including income statement, statement of cash flow and balance sheet. Please see the detail of the company from below report, The company Anna Amphlett and Andrew Ferris have discovered the meat pies, the national snack food of Australia, during their visit to Sydney. They found Australian consumed vas number of meat pies during sporting events and other occasions and pies are served with ice-cold beer. They decided to explore the possibility of establishing a business in USA. They have decided to locate the first outlet in Pike Place Market, a popular destination for tourist to Seattle in USA, particularly International travelers who curious about other cuisines and willing to try new foods. They have decided to make the pies with high-quality, low fat due to most international travelers belong to...
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...1. Using the information in the case, design an activity-based costing system and estimate product costs and gross margin percentages for valves, pumps and flow controllers. Justify your reasons for your ABC system design and computations. As per the ABC costing system, the 5 overhead cost drivers that can be identified are: A. Product Sustaining Activity Costs (i) Engineering Costs B. Batch Activity Costs (i) Receiving & Production Costs (ii) Setup Labor Costs (iii) Packaging & Shipping costs C. Unit Level Activities (i) Machine utilization cost Calculation for cost per unit (per piece) for each of the overhead activities for the 3 products Machine Valve Pump Flow Controller Total Machine hours 3750.00 6250.00 1200.00 11200.00 Machine hrs / unit 0.50 0.50 0.30 machine related exp. 336000.00 Cost / machine hrs 30.00 $ Machine / unit 15.00 15.00 9.00 Engineering Valve Pump Flow Controller Total Hrs Engg Work hrs 250.00 375.00 625.00 1250.00 Engg Work hrs / unit 0.03 0.03 0.16 Engineering Cost 100000.00 Cost / engg work hr 80.00 $ engg hrs / unit 2.67 2.40 12.50 Receiving & Prod.Control Valve Pump Flow Controller Total No. of Prod. Runs 10.00 50.00 100.00 160.00 No. of components 4.00 5.00 10.00 Receiving & Prod. Control Cost 180000.00 Cost / Prod. Run 1125.00 Total Cost for all components of a prod. 11250.00 56250.00 112500.00 $ Receiving Cost / unit 1.50 4.50...
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...Wilkerson Company Introduction Wilkerson Company is in the business of manufacturing valves, pumps, flow controllers etc. Severe industry wise price cuts in the pumps business, which is Wilkerson s major product line, has badly affected the company s margins (Gross Margin of 19.5% as against a planned gross margin of 35%). On the other hand the flow controllers division was performing above the expected profits (yielding a Gross Margin of 41%, a value higher than 35% estimated). Wilkerson needs to identify the proper mix of its product line to regain its profitability. This is to be done based on information provided in the case, regarding pricing decisions, decision to discontinue or continue a product and product design. A detailed analysis of the problems faced by Wilkerson Company is as follows. Analysis Based on the operating results of March 2000, we see that the company has grouped its overheads into 5 cost items, as below: Machine-related expenses Setup labor cost Receiving and production control Engineering Packaging and shipment Current Method - Volume Based Costing As per the given information, Wilkerson uses volume based costing system. Direct material and labor costs are based standard prices. Overheads are charged as 300% of the direct labor cost. This implies overheads are applied directly in relation to labor costs irrespective of relevance. Table 1 - Margin Calculation for Volume Based Costing Margin Calculation Planned Selling Price Actual Selling Price...
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...For the exclusive use of J. Wang, 2016. 9-101-092 REV: AUGUST 5, 2003 ROBERT S. KAPLAN Wilkerson Company The decline in our profits has become intolerable. The severe price cutting in pumps has dropped our pre-tax margin to less than 3%, far below our historical 10% margins. Fortunately, our competitors are overlooking the opportunities for profit in flow controllers. Our recent 10% price increase in that line has been implemented without losing any business. Robert Parker, president of the Wilkerson Company, was discussing operating results in the latest month with Peggy Knight, his controller, and John Scott, his manufacturing manager. The meeting among the three was taking place in an atmosphere tinged with apprehension because competitors had been reducing prices on pumps, Wilkerson’s major product line. Since pumps were a commodity product, Parker had seen no alternative but to match the reduced prices to maintain volume. But the price cuts had led to declining company profits, especially in the pump line (summary operating results for the previous month, March 2000, are shown in Exhibits 1 and 2). Wilkerson supplied products to manufacturers of water purification equipment. The company had started with a unique design for valves that it could produce to tolerances that were better than any in the industry. Parker quickly established a loyal customer base because of the high quality of its manufactured valves. He and Scott realized that Wilkerson’s...
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...HARVARD BUSINESS I SCHOOL 9 - 10 1-09 2 REV: AUGUST S, 2003 ROBERT S. KAPL AN Wilkerson Cotnpany The decline in our profits has become intolerable. The severe p rice cutting in pumps has dropped ou r pre-tax margin to less than 3%, far below our historicallO margins. Fortunately, % our competitors are overlooking the opportunities for profit in flow controllers. Our recent 10% price increase in tha t line has been implemented without losing any business. Robert Parker, presiden t of the Wilkerson Company, was discussing operating results in the la test month with Peggy Knight, his controller, and John Scott, his manufacturing manager. The meeting among the three was taking place in an atmosphere tinged with apprehension because competitors had been reducing prices on pumps, Wilkerson's major product line. Since pumps were a commodity product, Parker had seen no al ternative but to match the reduced prices to maintain volume. But the price cuts had led to declining company profits, especially in the pump line (stmunary operating results for the previous month, March 2000, are shown in Exhibits 1 and 2). Wilkerson supplied products to manufacturers of wa ter purification equipmen t. The company had started with a tuuque design for va lves thatt it could produce to tolerances that were better than any in the ind ustry. Parker quickly establis hed a loyal customer base because of the high quality of its manufactured val ves. He and Scott realized...
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...ROBERT S. KAPLAN Wilkerson Company The decline in our profits has become intolerable. The severe price cutting in pumps has dropped our pre-tax margin to less than 3%, far below our historical 10% margins. Fortunately, our competitors are overlooking the opportunities for profit in flow controllers. Our recent 10% price increase in that line has been implemented without losing any business. Robert Parker, president of the Wilkerson Company, was discussing operating results in the latest month with Peggy Knight, his controller, and John Scott, his manufacturing manager. The meeting among the three was taking place in an atmosphere tinged with apprehension because competitors had been reducing prices on pumps, Wilkerson’s major product line. Since pumps were a commodity product, Parker had seen no alternative but to match the reduced prices to maintain volume. But the price cuts had led to declining company profits, especially in the pump line (summary operating results for the previous month, March 2000, are shown in Exhibits 1 and 2). Wilkerson supplied products to manufacturers of water purification equipment. The company had started with a unique design for valves that it could produce to tolerances that were better than any in the industry. Parker quickly established a loyal customer base because of the high quality of its manufactured valves. He and Scott realized that Wilkerson’s existing labor skills and machining equipment could also be used to produce...
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...The analysis of these numbers helps draw the conclusion that the relationship between the cost of building a professional sports teams’ facility and the number of jobs created as a direct result of the introduction of the sports franchise is quite weak. The millions of taxpayer dollars that are used to construct the city’s professional sports stadiums do not match up to the amount of net jobs created within the stadium to help provide an economic boost for the city. The amount of jobs created that involve the sports team is far less than the cost to build the facilities for the...
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...global warming, and toxic substance usage have increasingly became one of the major debates in the global political, social and business world. In order to ensure an effective and a collaborative approach is taken to challenge these environments issues. In recent times, a consensus has emerged that environmental issues induced by industrial development should be addressed throughout the supply chain. This had led to the emergence of the concept suggested to as Green Supply Chain Management (GSCM). This research provided a concise background and challenges of green supply chain through applying qualitative analysis on potential implementation in existing literature. This research was use secondary data to analyze a single case study, which is a case study of Walmart GSCM. Data was collected through a quality source by process of evaluating the information sources. The research analysis have shown seven strategies that used at Walmart: Identifying goals, metrics, and new technologies, Providing network partner assistance to suppliers, Certifying environmentally sustainable products, Incentive for green products, Consolidating direct suppliers, Developing a sustainable standard, and Zero waste. In a conclusion, it was possible to understand that GSCM is one of the emerging approaches for retail industry. This approach had help the company differentiates from its competition and made its supply chain more efficient. This paper was useful in providing suggestions to the retail industry...
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...crystalline silica dust, and is marked by inflammation and scarring in the form of nodular lesions in the upper lobes of the lungs. It is a type of pneumoconiosis Statement of the problem 1. What is the couse of Pneumoconiosis? 2. How can it be prevented? 3. What are the symptoms? 4. How can affect in our body? 5. What are the treatment? Statement of the Hypothesis HO1: .A pneumoconiosis cause by inhalation of every fine silicate or quartz dust which is found in volcanic ash. HO2: Pneumonoultramicroscopicsilicovolcanoconiosis is fairly easy to prevent. Most countries do not have any volcanoes or any other places where silica dust exposure is likely. In case you live in one of the countries that does, here are few ways how to prevent this disease: Do not go in or near an active or non-dormant volcano. Do not expose yourself to silica dust for long periods of time. If or long periods of time, cease breathing. If you are in or near you do happen to be exposed to silica dust for a long period an active or non-dormant volcano, cease breathing. Avoid a place or places that contain volcanoes. Do not inhale volcanic smoke or ash, for it contains silica dust, which causes pneumonoultramicroscopicsilicovolcanoconiosis HO3: The symptoms of pneumonoultramicroscopicsilicovolcanoconiosis...
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...Harvard Business School Publishing Case Map for Horngren, Foster & Datar: Cost Accounting: A Managerial Emphasis, 10th Edition (Prentice Hall) This map was prepared by an experienced editor at HBS Publishing, not by a teaching professor. Faculty at Harvard Business School were not involved in analyzing the textbook or selecting the cases and articles. Every case map provides only a partial list of relevant items from HBS Publishing. To explore alternatives, or for more information on the cases listed below, visit: www.hbsp.harvard.edu/educators Case Title Institution, HBSP Product Number, Length, Teaching Note Geographical and Industry Setting, Company Size, Time Frame Abstract, Key Subjects PART ONE: COST ACCOUNTING FUNDAMENTALS Chapter 1: The Accountant’s Role in the Organization Chapter 2: An Introduction to Cost Terms and Purposes Carver HBSP United States, Consulting Co. #199006 consulting, 10,000 7p employees, 1994 Daniel Dobbins Distillery, Inc. HBSP #189065 7p TN #189172 Tennessee, liquor distillery, 1988 The managing partner of a relatively new consulting firm is concerned because training costs at the firm's new training center are higher than expected. Analysis of actual costs compared to those expected is required. In addition, he is considering capitalizing some training costs for later amortization. A management control system for the center is also a priority. A distiller increases whiskey production and income declines because of accounting...
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...HRM 1110: Organisational Behaviour and Analysis Re-sits 2012/2013 If you have failed HRM 1110 (any grade 17 or above) you are required to re-sit the elements you failed or failed to submit. Please double-check this on MISIS. This also applies to all students who have a plagiarism case against them. This document outlines the re-sit/plagiarism assignments you will need to do in order to pass HRM 1110 as follows: If you failed the essay but passed the presentation and the online test, you will only have to do the essay again. Equally, if you failed the presentation but passed the essay and the online test, you will have to only do the presentation again. If you failed both the presentation and the essay but passed the online test, you need to re-sit both the presentation and the essay. If you failed to submit anything, you will have to re-sit all three elements. If you have submitted all elements but failed all of them, you also need to re-sit all the elements in order to pass the module. There is no re-sit assignment for the attendance marks due to logistical reasons, so this mark will be carried over from the original mark sheet. The newly developed re-sit assignments are outlined below. The deadline for all of the below-outlined re-sit assignments is Sunday September 1st 2013. Please submit a hard copy of all assignments to the Student office not later than 4 pm (Dubai local time). Additionally, you are required to submit a soft copy to OASISPlus (Turn-it-in)...
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...An Analysis of the Consensual Relationship Agreements Case Study Assignment 1 By: STUDENT NAME: Lloyd D. Gaines Jr. TO: Dr. W. D. Wilkerson Professor: COURSE NAME: BUS 520: Leadership and Organization Behavior STRAYER UNIVERSITY WASHINGTON, DC April 16, 2012 Consensual Relationship Agreements Case Study Introduction The Purpose of this case study is to examine the Consensual Relationship Agreement Case Study. “Historically, sexual relationships between employees have been viewed as private matters beyond the purview of the company and not involving special ethical issues” (Stamler, Pace & Stone p.218 1997) Employees who engage in workplace relations usually have to sign a contract. This contract ensures that the involved parties will uphold the strict policies and standards of employee etiquette. A typical consensual relationship agreement includes the guidelines on how love struck staff should behave. In analyzing the case, concepts will be identified in the areas of organizational behavior models of individual, group, and organizational processes how ethical decisions are made, and concepts of individual differences, personality traits, and perspectives. According to Hellriegel & Slocum (2011) the characteristics of a Consensual Relationship Agreement is defined as contract that set boundaries on certain office romance situations. They go as the following:...
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...Clinical Documentation System Excelsior College October 6, 2013 Clinical Documentation System Clinical information system (CIS) collects patient data in real time, stores healthcare data and information using secure access to the healthcare team. (McGonigle & Garver Mastrian, 2012, p. 554). The CIS that is used at Texas Health Dallas is CareConnect. CareConnect is used by all of the Texas Health Resources (THR) encompassing 25 hospitals, affiliated physician offices, and ancillary facilities. CareConnect allows physicians and management to access the system on their mobile devices and home computer for real time data. The shift for CIS is set for implementation throughout the United States by 2015. The clients served are those in the community that THR provides healthcare services to. The electronic health record is shared amongst the healthcare team and other affiliates. Data collection can be continuously updated, used for “statistical evaluation for purposes of quality improvement, outcome reporting, resource management, and public health surveillance.”(Yamada, 2008, p. 5). Data collection is generally initiated in the ER, and other times when the patient is at the physician's office or in the outpatient service line. To reference inpatient services, data collection begins in the ER. The patient's allergies, current medications, medical history, vital signs, immunizations, suicide screening and domestic violence screening are all obtained...
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