Costing Methods: Super Bakery, Inc. George Mancuso ACC/561 Accounting March 18, 2013 Lisa Parker Abstract Super Bakery, Inc., a virtual corporation is a supplier of mineral-, vitamin-, and protein-enriched doughnuts and other baked goods to institutional food distribution centers nationwide (Kimmel, Weygandt, & Kieso, 2009). The company has grown at an average rate of 20% annually since 1990 but persistent challenges of identifying opportunities for cost efficiency in using traditional
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of Costing Plan Trident University Businesses must choose the most appropriate costing plan for their particular business by taking into account various aspects that are potentially impacted. For the cast of the Farm Financial Standards Council, certain allocations are considered in each department of the farming process in order to better manage financial aspects of the farm. Although some of these allocations may prove logical and assist in determining costing, some
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Costing Methods Paper ACC/561 July 1, 2012 Costing Methods Super Baker previously used the traditional costing system to manage its cost management. Super Bakery changed its business strategy to an Activity-Based Costing system, to identify at the activities associated with each order. Because Super Bakery outsources its business operation, an Activity-Based Cost system would be beneficial to track effectiveness of each vendor. Activity-Based Costing strategic gives the company detailed
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Financial Analysis A1. Costing Method The purpose of the following Executive Summary is to illustrate Competition Bikes Inc.’s need to alter our current costing method by utilizing the activity based costing (ABC) method. Traditional based costing (TBC) is a method a company may use to find the cost of a product in relation to the revenue it creates. It is used to designate manufacturing overhead to units made (Chron, 2013). Activity-based costing identifies activities that a company executes,
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CHAPTER 4 ACTIVITY-BASED COSTING CHAPTER REVIEW UNIT COSTS 1. Functional-based and activity-based costing assigns costs to cost objects such as products and customers. Once costs are assigned to the cost object, the unit cost is calculated by dividing the total cost assigned to the units produced by the number of units produced. 2. Unit cost information is used to: ■ value inventory ■ determine cost of goods sold, which affects income ■ determine bids to give to potential
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Question 1) Consider the following scenario: Two accountants are having a discussion about whether or not their company should use an activity-based costing system. • Contribute to a discussion thread. Take the side of the argument assigned to you by the instructor and, together with your group, create a list of 5 advantages or 5 disadvantages, to correspond with your group's assignment. • Post your group's list in the [Main] forum as an attachment. • Compare the posts from both groups and
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of using an Activity Based Costing (ABC) over other costing systems. Also identify at least one company that uses ABC and describe how it benefits the company. Introduction This paper has been formulated in order to determine the basic nature of Activity Based Costing, its advantages and disadvantages. These points are further elucidated by a case study of a Taiwanese hot spring country inn’s implementation of the ABC system. What is Activity Based Costing The Activity-Based Costing theory started
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Wilkerson Case Igor Baranov Executive Summary Taking into account the difference among product and high proportion of overheads, Wilkerson should abandon its existing cost system and move to activity-‐based costing. The profitability analysis indicates that the company earns healthy margins on pumps and valves. However, the margin of flow controllers at actual usage of capacity is negative. Wilkerson should
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Activity-based costing (ABC) is a costing method that first assigns cost to activities and then assigns them to products based on the products’ consumption of activities (Lanen, Anderson, & Maher, 2011). Activities are tasks that are required in order for a company to finish its product. ABC was first written about by Alexander Hamilton Church in 1901. He believed that overhead was the cost of different activities of production. He believed that in order to report accurate costs, all of the cost
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FROM: Brett Davis, Paul Gorski, and Sarah Wisenbarger DATE: September 17, 2015 SUBJECT: Analysis of Destin Brass Products Co. ------------------------------------------------- The purpose of this memorandum is to analyze the product costing of pumps, valves, and flow controllers at Destin Brass Products Co. Destin Brass supplies three products for high-quality brass boat fittings. Currently the most revenue is coming from the production of pumps; however, due to the fact that competitors
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