1. Why was Dakota's pricing system inadequate for its current operating environment? Currently, DOP's pricing system is pricing products by adding markup twice, which is marking up the purchased product cost by around 15% to cover the cost of warehousing, distribution, and freight. Then add another markup to cover the approximate cost, for general and selling expenses, plus an allowance for profit. We found that the existing pricing system is inadequate regarding to following points: The
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Organization Overview or Profile of the Organization Beximco Pharmaceutical Ltd. is a leading edge pharmaceutical company based in Dhaka, Bangladesh and is a member of the Beximco Group. The history of pharmaceutical business of the company dates back to the early 70s, when it started to import market and distribute medicines from world renowned companies like Upjohn Inc. of USA and Bayer AG of Germany. Since the very beginning, the company was highly successful in generating increased demand for
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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 efforts, Dakota’s costs continued to increase. John Malone was concerned because the company could not make a profit. He wanted to take an action to regain profitability. John Malone
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BA3121 Introduction to Management Accounting Group Assignment Word Count | 2,499 words | Management Accounting System Proposal for Automobile Power Executive Summary Due to the absence of a management accounting system within the company, Automobile Power has been seriously disadvantaged since its founding. Particularly, cost efficiency at the company had been poor, as there was much unnecessary manufacturing expenditure incurred. Additionally, due to the lack of thorough market analyses
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Accounting, Cost 14e (Horngren/Datar/Rajan) Chapter 5 Activity-Based Costing and Activity-Based Management Objective 5. 1 1) If products are different, then for costing purposes: A) an ABC costing system will yield more accurate cost numbers B) a simple costing system should be used C) a single indirect-cost rate should be used D) none of the above Answer: A Diff: 1 Terms: activity-based costing (ABC) Objective: 1 AACSB: Reflective thinking 2) Overcosting a particular product may result in: A) loss of
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by line. This was a very tedious task and forced MOP to have 16 order entry operators on staff. In 1999, MOP introduced an electronic data interchange (EDI) system and implemented a new internet site in 2000. This allowed customer orders to arrive automatically so the clerks would not have to manually enter the data. With the EDI system, order entry operators only had to quickly verify the customer’s order for accuracy. This saves a tremendous amount of time, regardless of the order size. Next
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SEC files a fraud case against Goldman Sachs, an industry leader, is now being investigated for unfair investing scandal. Goldman Sach’s Case # 5 AC805 Advanced Management Accounting Control Systems Goldman Sach’s Case # 5 AC805 Advanced Management Accounting Control Systems The Goldman Sachs fraud case opened by the Securities and Exchange is one of the items that were highlighted by the down turn of the economy in the last few years. Goldman Sachs has vigorously denied
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Question 1 Welcome to our Week 1 Discussions! To get us started, let's consider the following questions. 1) Would a traditional income statement differ depending on whether the business is a service organization, merchandiser, or manufacturer? 2) Could we use managerial accounting tools to assess the profitability of an organization other than a manufacturing business, or are the topics that we are learning only related to manufacturing? 3) If we could use these concepts in service and/or
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Capital Budgeting Overview The capital structure of a company is derived from portions of debt and equity. Debt can be categorized as either long-term or short-term debt. Short-term debt can be classified as notes payable and accounts payable and long-term debt can be classified under bonds. The equity portion of a company’s debt lies within common and preferred stock. Debt is used as a form of leverage to ultimately increase the overall return on an investment. The more debt and equity, capital
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Introduction Automated systems exist to ease the effort required by manual system e.g. writing a letter by hand can be easily done through several existing word processors that provide various formatting and paging options. In case of automated inventory system, the whole inventory management and re-stocking can easily be done. Moreover, there is less likelihood of errors while handling stocks and hence, less strain. Automated inventory systems provide instant notifications of sale, purchases
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