business. 3. Using your new costing system, calculate distribution services costs for ‘Customer A’ and ‘Customer B’. 4. What inferences do you draw about the profitability of these two customers? (hint: you can compare the ‘old’ method to the ‘abc’ method using customer profitability analysis in a table format; you can show this by: Sales less Product Costs less Service Fees = Gross Profit You can also show Gross Profit as a % 5. Should TFC implement the SBP pricing system? Give reasons. 6
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RICHARD COMERFORD AND PETER ROBINSON REVISED BY: BRIAN CLARKE Contents Workshop notes Workshop introduction Workshop objectives Workshop purpose Case Study: Pavlova Pty Ltd (PPL) Module 4: Techniques for creating and managing value Product costing at PPL Strategic management accounting tools and non-manufacturing activities Module 4 review questions Module 5 introduction – Project management Project selection NPV and sensitivity analysis Project planning – PERT Project implementation Project
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GLOSSARY OF FINANCIAL TERMS Absorption costing A costing approach in which all manufacturing costs are charged to the product. | Absorption-cost pricing An approach to pricing that defines the cost base as the manufacturing cost; it excludes both variable and fixed selling and administrative costs. | Accelerated-depreciation method Depreciation method that produces higher depreciation expense in the early years than in the later years. | | Account A record of increases and decreases in
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Benchmarking the incidence of strategic management accounting in Slovenia Introduction The purpose of this research is to benchmark the degree which large companies in Slovenia apply strategic management accounting. This research conducted by Simon Cadez from Department of Accounting and Auditing, Faculty of Economics, University of Ljubljana, Slovenia and Chris Guilding from Service Industry Research Centre, Griffith university, Queensland, Australia. This research is on 2007 at Slovenia. Before
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Excerpted from Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits By Robert S. Kaplan, Steven R. Anderson Harvard Business Press Boston, Massachusetts ISBN-13: 978-1-4221-2227-3 2227BC Copyright 2008 Harvard Business School Publishing Corporation All rights reserved Printed in the United States of America This chapter was originally published as chapter 5 of Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits
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Notes CIMA Paper P2 Management Performance For exams in 2013 theexpgroup.com CIMA P2 Performance Management ExPress Notes Contents About ExPress Notes 1. 2. 3. 4. Pricing and Product Decisions Cost planning and analysis Budgeting and Management Control Control/Performance Measurement of Responsibility Centres 3 7 22 31 37 Page | 2 © 2013 The ExP Group. Individuals may reproduce this material if it is for their own private study use only. Reproduction by any means for any
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H & R Block is one of the largest and oldest service providers. The company was founded by brothers Henry and Richard Bloch in 1955. The company began franchising in 1956 and they went public in 1962. The company employed over 100,000 tax professionals that are trained both within the U.S. and worldwide. The company has prepared more than 550 million tax returns since the business started in 1955. One key important key to the company success is that they have a retail office within 5 miles of
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*Price: The amount of money charged for a product or service, or the sum of the values consumers exchange for the benefits of having or using the product or service. > Major pricing strategies *Considerations in setting price [Figure 9.1], [Figure 9.2] -Customer perceptions of value = Price ceiling (No demand above this price) Assess customer needs and value perceptions -> set target price to match customer perceived value -> determine costs that can be incurred -> design product
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Products are priced to its end-use customers by first marking up the purchased product cost by about 15% to cover the cost of warehousing, distribution, and freight. Then it adds another markup for general and selling 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
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12 Marginal Costing Basic Concepts Marginal Cost This is the variable cost of one unit of product or a service. Marginal Costing It is a principle whereby variable cost are charged to cost units and fixed cost attributable to the relevant period is written off in full against contribution for that period. Absorption Costing A method of costing by which all direct cost and applicable overheads are charged to products or cost centres for finding out the total cost of production
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