industry is intensive, it it is necessary for Colorscope to provide high quality products and service to their client. In that way, it can build a long-term customer relationship and attractive other customer’s to invest their products. 2. Two stage cost system In activity based costing, the two stage
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Darling (1996), “ …helping customers obtain lower prices by acquiring government-supported commodities, cooperating with noncompeting suppliers by providing complete prepackaged meals to schools, and helping distributors reduce inventory carrying costs and avoid stock outs through reliable, just-in-time delivery” (p. 20). The fourth strategy is becoming a virtual corporation which does not manufacture, sell, or distribute the company’s product (Davis & Darling, 1996). This helps to reduce expenses
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Traditionally cost accountants had arbitrarily added a broad percentage of analysis into the indirect cost.[3] In addition, activities include actions that are performed both by people and machine. However, as the percentages of indirect or overhead costs rose, this technique became increasingly inaccurate, because indirect costs were not caused equally by all products. For example, one product might take more time in one expensive machine than another product—but since the amount of direct labor
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line cost bias. For example, Greetings. INC has added a new product line, Wall Décor. However, they have noticeably raised their overhead costs by increasing their cost drivers. In this circumstance, Wall Décor should amend its costing system so that overhead costs will be allocated in such a way that parallels to either frame or unframed prints instead of taking into consideration the same overhead for both products. ABC Overhead Rates Activity / Est. Overhead / Expected use of Cost Drivers
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however, the firm has been facing intense competition, and its sales of this part have dropped. Much of the competition was from foreign sources, and the general manager was convinced that the foreign producers were guilty of dumping (selling below cost). The following conversation between Ken Larson, general manager, and Martha Jones, marketing manager, reflects the concerns of top management and some possible solutions that were being considered. Martha: "I just received a call from one of
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mbacasestudyanswers.com ARAVIND – 09901366442 – 09902787224 Cost and Management Accounting 1. X is the manufacture of Mumbai purchased three chemicals A, B and C from U.P.The bill gave the following information: Chemical A: 6000 kgs @ Rs. 4.20 per kg Rs 25,200 Chemical B: 10000 kgs @ Rs. 3.80 per kg 38,000 Chemical C: 4000 kgs @ Rs. 4.75 per kg 19,000 VAT 2,055 Railway Freight 1,000 Total Cost 85,255 A shortage of 100 kgs in chemical A
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to seventy-five percent of drunk drivers whose licenses are suspended continue to drive. Lives are lost because of people’s selfishness and dangerous activity while under the influence of alcohol, and the punishment does not fit the crime. According to the Mothers Against Drunk Driving advocacy group, About three in every ten Americans will be involved in an alcohol-related crash at some time in their lives. On average someone is killed by a drunk driver every forty minutes. In two-thousand
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DEPARTMENT TWO: PACKAGING 3 4 4 4 5 Process Costing DETERMINING FIGURES CALCULATING COST PER EU 6 7 8 Cost Reconciliation Recommendations CAPPING & LABELLING BOTTLES & UTILITIES TRANSPORTATION 9 10 10 11 11 Introduction of Outpatient Business Costing Technique Chosen ACTIVITY BASED COSTING (ABC) JUSTIFICATION 12 12 12 12 Assumptions List of Activities and Cost Drivers Traditional Costing COMPARE AND CONTRAST WITH ABC UNDER ABC METHOD UNDER TRADITIONAL COSTING
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irresponsible, and dangerous. One could be arrested, seriously hurt, or even killed, which could affect their family in a major way. If a person plans on drinking, and knows there is a possibility they could end up driving, they should have a designated driver. Drinking and driving is just not a good thing to do. Our goal is to deter young adults not to drink and drive, by educating them on their responsibilities, the destruction that it causes and the consequences. The key to ending drunk driving is
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Activity-Based Cost Grisel Rosas ACC/561 9/21/2015 Debra Luna Activity-Based Cost A. Activity Cost Pool Estimated Overhead Market Analysis $1,050,000 Product Design $2,350,000 Product Development $3,600,000 Prototype testing $1,400,000 Total $8,400,000 Activity Cost Pool Cost Drivers Expected Use of Cost Drivers per Activity Market Analysis Hours of analysis 15000 Hours Product Design Number of Designs 2500 Design Product Development
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