Managerial Decision Making, Case 2, Greetings Inc. Activity Based Costing |Case 2 | | Greetings Inc.: Activity-Based Costing | |This case is from the book: Managerial Accounting: Tools for Business Decision | |Making, 5th Edition | |Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso | |©2010 | |And was answered by some students. | | | | | 1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product
Words: 866 - Pages: 4
past, but he has not done so as yet. Because of the product cost mess he has no order in management. He realizes his prices are too low, but he cannot figure out the product price structure and a course module pertaining to cost behaviors, product costing, and relevant costs. As a result, it is hard for him to give the exact price for four different kinds of glasses. Also, he only has a few thousand dollars. If he does not sell the products on time he will run out of money. The main solution is
Words: 523 - Pages: 3
of this course are: 1. To develop an understanding of the costing, cost calculation. 2. To develop understanding of application of different techniques of cost allocation. 3. To understand the relationship between cost and volume and application of this in making different decisions. 4. To develop ability to make different decisions by using accounting information. 5. To understand the application of budgeting and standard costing as controlling tool. 6. To apply the different tools of management
Words: 921 - Pages: 4
ACCT 606 Managerial accounting Professor: Dr. John Jin Student Lu-Yi Lin ID #:003253080 Definition of start-up costs and organizational costs: Start-up costs are costs for setting up or investigating the creation or acquisition of a business. Start-up costs include any amounts paid or incurred in connection with an activity engaged in for profit or for the production of income in anticipation of the activity becoming a business. Organizational costs include the costs of creating a corporation
Words: 324 - Pages: 2
past, but he has not done so as yet. Because of the product cost mess he has no order in management. He realizes his prices are too low, but he cannot figure out the product price structure and a course module pertaining to cost behaviors, product costing, and relevant costs. As a result, it is hard for him to give the exact price for four different kinds of glasses. Also, he only has a few thousand dollars. If he does not sell the products on time he will run out of money. The main solution is
Words: 523 - Pages: 3
Hallstead Jewelers was one of the largest jewelry and gift stores in the United States for 83 years. Customers came from throughout the region to buy from extensive collections in each department. Any gift from Hallstead’s had an extra cache attached to it as they were known for having the best. Even though the principal retail shopping areas shifted two blocks west, Hallstead’s reputation and selection still brought in customers. In 1999 however, sales became stagnate and profits were
Words: 1322 - Pages: 6
1. Activity costing would be appropriate 1. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. As seen on previous case, this distortion happens when one product is manufacturing in high volume and the others are manufacturing in complexity as well as in low volume. In this situation Wall Décor should change its costing system for selling its high volume produced products whereas low-volume produced
Words: 843 - Pages: 4
severely undermined Elkay’s profitability. Since Elkay kept using a traditional standard costing system and analyzed its customer P&Ls within it, managers didn’t take well actions toward the decline in profit for they knew information provided by this system were actually inaccurate and meaningless. Due to Hrudicka’s tireless efforts and successes from two pilot projects, PPD implemented the new Discrete Product Costing by adopting the time-driven ABC system eventually. However, in may 2008, after received
Words: 1262 - Pages: 6
International Institute of Project Management 1 of 4 http://www.iipmchennai.org/shop/db/docs/dloadables/studymat/qmpm/cas... Quantitative Methods for Project Management 4/27/2009 7:50 AM International Institute of Project Management 2 of 4 Username: bryongaskin In Time: 4/27/2009 7:41:08 AM GMT Home Course Main page Profile Manager Access Details Feedback Contact Us FAQ Logout http://www.iipmchennai.org/shop/db/docs/dloadables/studymat/qmpm/cas... Case
Words: 1565 - Pages: 7
Product Development | # of Products | 3 | | $40,000 | $120,000 | Prototype testing | # of Test | 70 | | $2,800 | $196,000 | D. Benefits of activity-based costing Ideal Manufacturing will greatly benefit by using the activity-based costing for its research and developing activities. The benefits of activity costing help eliminate the distortions that can occur in traditional overhead cost allocation. What
Words: 754 - Pages: 4
