system that can establish a more accurate product costing method that can, at minimum, improve control of overhead costs. What strategies did the management of Super Bakery, Inc. use? Formed as a virtual corporation, Super Bakery designed a business model that performs key strategic planning and business functions in-house while outsourcing all manufacturing components as a cost reductions strategy. Super Bakery successfully maximizes profits by outsourcing all other components such as sales
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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
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SUPPLY CHAIN JARGONS Pegging In MRP and MPS, the capability to identify the sources of its gross requirements and/or allocations for the given item. Pegging can be thought of as active where-used information. ABC Inventory Control An inventory control approach based on the ABC classification. According to this classification, the groups of items are placed in the decreasing order of annual dollar volume (price multiplied by projected volume) or some other criteria. This array is then split into three
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the southwestern USA. It is a casual service restaurant and has about 50 seats. The study will calculate Activity-Based Costs for major items from the restaurant menu as selected by management. Students should incorporate the following steps: ABC Stage One 1. Decompose the general ledger (use the provided income statements for April 2014 – Table 1) into major cost pools following the model below (Figure 1). Please note that the payroll for the FOH was $12,521.06 and the payroll for
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earning a superior return for its shareholders? The company evaluated its existing business and new initiatives based on their ability to contribute to Disney’s long term cash flow and earnings growth, and to provide returns that exceed Disney’s cost of capital. Through strategic planning, sound decision making, and creative and disciplined management, the Walt Disney Company promises to continue providing quality entertainment to its customers and attractive financial returns to its investors
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Value of Objectives Objectives Focus & Coordination Plans & Decisions Measurement & Control Establishing Objectives and Budgeting for the Promotional Program © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin © 2007 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Characteristics of Objectives Marketing Versus Communications Objectives Marketing Objectives • Generally stated in the firm’s marketing plan • Achieved through the overall marketing plan • Quantifiable, such as sales
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Attempt Any Four Case Study Case 1: Zip Zap Zoom Car Company Zip Zap Zoom Company Ltd is into manufacturing cars in the small car (800 cc) segment. It was set up 15 years back and since its establishment it has seen a phenomenal growth in both its market and profitability. Its financial statements are shown in Exhibits 1 and 2 respectively. The company enjoys the confidence of its shareholders who have been rewarded with growing dividends year after year. Last year, the company had announced
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Breeden Security, Inc. RECOMMENDATIONS Reduce Order Driven Costs & Improve Customer Profitability - Immediate • Standardize RC2 packaging to reduce costs • Incent customers to place larger orders less frequently by instituting minimum order limits • Impose a premium fee for rush orders • Coordinate with customers to improve forecasting and further integrate supply chains for more accurate
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creation of responsibility centers (e.g. cost, profit, or investment centers). The performance of these responsibility centers is evaluated on the basis of various accounting numbers, such as standard and actual cost, divisional profit or return on investment. A central role of the management accounting system therefore is to evaluate (i.e. attach a dollar figure to) the transactions between the different responsibility centers. Under the subject cost allocation we studied alternative methods to charge
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