In the Chicago plant, G.G. Toys should change its existing cost accounting system from the legacy or traditional costing methodology to activity-based costing (ABC). In allocating overhead as a percentage of direct labor cost, the margins of 9% and 34% in the Geoffrey doll and the specialty branded doll #106 respectively, do not reflect the actual cost of overhead. Currently G.G. Toys is calculating its manufacturing overhead costs on only on one cost driver, the direct labor. From case facts, we
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Relevant Facts Toys “R” Us first told the public about their decision to enter the Japanese toy market in 1989. A lot of critics worried that Toys “R” Us would not be successful in this new and foreign market. They raised several issues that they believed proved the Japanese market was not ready for the marketing and retailing strategy that Toys “R” Us offered. They stated that the Japanese culture and beliefs were too different from that of the United States and Europe for Toys “R” Us to be successful
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- G.G Toys should not produce the specialty line; this line is to costly when it comes to trying to increase the profit margins. Having to set up a line and test all the toys that come off the production line each time is very costly. This should be scraped if the company wants to start earnings some better profits. Also their overhead isn’t being allocated correctly they are including the switch from custom to regular in the regular overhead section. - The President of G.G toys is thinking about
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G.G. Toys Case Study February 28, 2012 The five most pressing issues G.G. toys is facing are the decline in pre-tax margins of the Geoffrey doll, the costing system being used in the Chicago plant, how to efficiently use the excess materials and machinery used to create the reindeer doll for three months, whether or not to produce the “Romaine Patch” doll and the last being what caused an increase in sales in the Chicago plant in March 2000 despite a decrease in production. The first issue
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It’s toy time Educational products for developing minds 1. Executive Summary: It’s toy time is a specialty toy retailer, operating in Banani 11 no. shop no.1. We are a company that helps to grow the creative power of our children.Our success is our employees and the unique service they render. The large variety of toys at lower prices, the fun-filled atmosphere and service is all that It’s toy time provides its customers.We are the only company who thinks about a childs mental development
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and adults. The company has come far since 1932, but, because its basic product allows for limitless imagination, there are still endless opportunities it can pursue. The ability to inspire infinite creativity is what sets Lego apart from any other toy retailer. Lego’s competitive advantage is a combination of four factors: its brand equity, merchandise assortment, pricing, and visual merchandising. As a toymaker that has prominent brand equity, opening themed brand retail stores gives its consumers
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23.70 30.00 6.30 21% 4. How should G.G. Toys account for the excess capacity created to produce the holiday reindeer dolls? Qualitatively, how will this impact your calculated cost of the Geoffrey doll and the specialty-‐ branded dolls in question number 2? Explain your method and
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In early June of 2006, Doug Baker met with his sales manager Alissa Moreno to discuss the results of a recent foray into international markets. This was new territory for Baker Adhesives, a small company manufacturing specialty adhesives. Until a recent sale to Novo, a Brazilian toy manufacturer, all of Baker Adhesives’ sales had been to companies not far from its Newark, New Jersey, manufacturing facility. However, as U.S. manufacturing continued to migrate overseas, Baker would be under intense
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As age increased, Tim had a hard time improving his toys. Yet along making them. The fires came back and Mr. Claus was no longer alive to assist him. He figured that since he couldn’t make toys for the sweet children, the least he could do is get all the orphans a home. The orphanage was still in business and he was now in charge. Tim no longer had the time or the motivation
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and locally owned in the city they conducted business in. Department stores were identified by the products they sold. There were hardware stores, furniture stores, toy stores, clothing stores, grocery stores, and even produce stores. Consumers went to specific stores to purchase specific items. Local specialty stores were replaced by the supermarket. These new superstores specialized in fruit, vegetables and food items, while others went in the opposite direction offering
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