Beyond Benchmarks: Estimate Your Application Maintenance Costs Using Internal Data by Phil Murphy EXECUTIVE SUMMARY Applications professionals struggle to explain the cost of their applications' ongoing operations and maintenance to their business counterparts, who commonly perceive the costs as excessive. The business perceives these costs as excessive in part because of the way applications professionals deliver the information — as a large and indecipherable lump-sum budget item. Applications
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Cost Method Problem: ABC a Virtual Organization The Super Bakery supplies mineral, vitamin, and protein enriched baked goods to food markets like school systems. The strategic functions of the company are performed internally. The other activities including sales, warehousing, and shipping are outsourced to various external companies. The following questions explain the costing methods of the Super Bakery and what costing method system is the best process for the Super Bakery. Cost Methods Evaluated
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Provide your best estimate of the cost and profitability of Wilkerson’s three product lines using: a. Wilkerson’s existing cost system b. an activity-based cost model using the information in the case 2. What causes any shifts in reported product costs and profitability? 3. Based on your analysis in Question 1b, recommend three distinct actions that Wilkerson’s managers could implement to improve profitability? 4. What concerns, if any, do any have with the cost estimates you prepared in the
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the following question(s). | | |Wood Manufacturing is a small textile manufacturer using machine-hours as the single, plant-wide predetermined cost driver rate to | | |allocate manufacturing overhead costs to the various jobs contracted during the year. The following estimates are provided for the | | |coming year for the company and for the Winfield High School band jacket job:
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treatment) | -Managing stock-Find partners-pet allocation-managing webpage | -Reasonable price-provide dog care facilities | -Facebook page-Call service-Provide dog care information | -People who have pet-Dog lover-Financial ability | | Key Resources | | Channels | | | -webpage-Store location-Workers-Hospital partners | | -Distribute flyers-Facebook page | | Cost Structure | | Revenue Streams | | | -publicity-Salary-dog stuff-overhead cost | | -dog care payment-Sales of clothing and
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Applied Public Finance Fiscal Impact Analysis 3 - FIA 3 Assignment * Briefly describe (1-2 pages) the American Farmland Trust (AFT) Cost of Community Services methodology and illustrate the COCS approach from the Skagit County, WA case study. The American Farmland Trust Cost of Community Services methodology compares the ratio of expenditures to revenue for different land uses, which are used in municipal land-use planning. Land uses, from residential / commercial / industrial , agricultural
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Health Care Spending The current health care expenditures raise the eyebrows of many Americans in the United States because of the increasing costs of health care services. Government officials are taking steps to consider the medical needs of Americans. “Health expenditures in the United States neared $2.6 trillion in 2010, over ten times the $256 billion spent in 1980” (The Henry Kaiser Family Foundation, 2012, para 1). For Americans to understand the spending of health care, this paper
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time, the high dollar value reduced U.S exports, which hurt the profitability of American farmers and therefore hurt their ability to purchase farm equipment. Management costs systems should be accurate and actionable. They should appropriately allocate the use of direct materials, direct labor, and all forms of indirect costs, or overhead, to the correct manufactured items. Divisions should also be created in order to give
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taken a closer look at the cost accounting for their product lines, specifically how overhead costs are allocated to the products. Their current cost account system is a traditional system which allocates overhead cost on the bases of production-run labor cost. Although Destin has a narrow range of products they are now at the point where they need more specific information on actual products costs to better determine pricing and profitability. The overhead and support costs need to be split in a more
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if property rights are well defined, and no significant transaction costs exist, an efficient allocation of resources will result even with externalities (Harris, 2002). Coase argued that market failure, can be privately solved to an optimal level when the legal system intervenes, giving property rights to one of the parties involved. Essentially, the theorem is based on two underlying assumptions which are low transaction costs and the assignment of property rights. Firstly, the assignment of property
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