Homework Answers
| The Company should opt to adopt ABC programme rather than spending on advertisement. | |||||||||
| The effect of the advertisement expense will end within few time. But ABC system will benefit the company in long term. | |||||||||
| Following are few benefits of ABC. | |||||||||
| 1. | Accurate product Costing. | ||||||||
| ABC system will help the company to accurately identify the product cost so that company can do correct pricing of it's product. | |||||||||
| 2. | Information about cost Behaviour | ||||||||
| ABC identifies the real nature of cost behaviour and helps in reducing costs and identifying activities which do not add value to the product. | |||||||||
| 3. | Tracing of Overhead Costs. | ||||||||
| ABC traces costs to areas of managerial responsibility, processes, customers, departments besides the product costs. That helps the company to minimize it. | |||||||||
| 4. | Better Decision Making. | ||||||||
| ABC improves greatly the manager’s decision making as they can use more reliable product cost data. | |||||||||
| ABC helps usefully in fixing selling prices of products as more correct data of product cost is now readily available. It will help company to win quotations. | |||||||||
| Overall, the current expenditure of $8000 will result savings of multiple times of this amount in long term. | |||||||||
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A $8000 proposal to introduce an ABC (Activity based costing) programme has been reported to the...
4. Prior to the accountant's efforts, the CEO was quoted a £10,000 request in order to...
4. Prior to the accountant's efforts, the CEO was quoted a £10,000 request in order to implement an ABC system. Frustrated, the CEO initially turned down this quote, believing that this cost will not provide much benefit, saying: "If I had the choice, I would rather spend the £10,000 in creating a third waffle product, or develop the marketing of the company further. How does a customer truly benefit from a so-called investment of £10,000 into a better accounting system?"...
. Required Question: . please do it Implementation of Activity-based costing (ABC) The case of a...
.
Required Question:
.
please do it
Implementation of Activity-based costing (ABC) The case of a Juice Company John Orland, controller of the Juice Company, has been concerned over the erosion of the recent financial results especially for the standard flavors (A and B) which used to earn a hefty 20 per cent of profit margin. Recently, Dan Brun, the sales manager has expanded the lines of products to encompass new flavors (C & C) which were in high demand...
Implementation of Activity-based costing (ABC) The case of a Juice Company John Orland, controller of the...
Implementation of Activity-based costing (ABC) The case of a Juice Company John Orland, controller of the Juice Company, has been concerned over the erosion of the recent financial results especially for the standard flavors (A and B) which used to earn a hefty 20 per cent of profit margin. Recently, Dan Brun, the sales manager has expanded the lines of products to encompass new flavors (C & C) which were in high demand by customers who were willing to pay...
Implementation of Activity-based costing (ABC) The case of a Juice Company John Orland, controller of the...
Implementation of Activity-based costing (ABC) The case of a Juice Company John Orland, controller of the Juice Company, has been concerned over the erosion of the recent financial results especially for the standard flavors (A and B) which used to earn a hefty 20 per cent of profit margin. Recently, Dan Brun, the sales manager has expanded the lines of products to encompass new flavors (C & C) which were in high demand by customers who were willing to pay...
doctor just give this information Implementation of Activity-based costing (ABC) The case of a Juice Company...
doctor just give this information
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Activity based costing and management Opsonin Inc manufactures three products for the pharmaceuticals industry . product P annual sales, 8000 units. product Q annual sales, 15 000 units. product R :...
Activity based costing and management
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4. Prior to the accountant's efforts, the CEO was quoted a £10,000 request in order to implement an ABC system. Frustrated, the CEO initially turned down this quote, believing that this cost will not provide much benefit, saying: "If I had the choice, I would rather spend the £10,000 in creating a third waffle product, or develop the marketing of the company further. How does a customer truly benefit from a so-called investment of £10,000 into a better accounting system?"...
.
Required Question:
.
please do it
Implementation of Activity-based costing (ABC) The case of a Juice Company John Orland, controller of the Juice Company, has been concerned over the erosion of the recent financial results especially for the standard flavors (A and B) which used to earn a hefty 20 per cent of profit margin. Recently, Dan Brun, the sales manager has expanded the lines of products to encompass new flavors (C & C) which were in high demand...
Implementation of Activity-based costing (ABC) The case of a Juice Company John Orland, controller of the Juice Company, has been concerned over the erosion of the recent financial results especially for the standard flavors (A and B) which used to earn a hefty 20 per cent of profit margin. Recently, Dan Brun, the sales manager has expanded the lines of products to encompass new flavors (C & C) which were in high demand by customers who were willing to pay...
Implementation of Activity-based costing (ABC) The case of a Juice Company John Orland, controller of the Juice Company, has been concerned over the erosion of the recent financial results especially for the standard flavors (A and B) which used to earn a hefty 20 per cent of profit margin. Recently, Dan Brun, the sales manager has expanded the lines of products to encompass new flavors (C & C) which were in high demand by customers who were willing to pay...
doctor just give this information
Implementation of Activity-based costing (ABC) The case of a Juice Company John Orland, controller of the Juice Company, has been concerned over the erosion of the recent financial results especially for the standard flavors (A and B) which used to earn a hefty 20 per cent of profit margin. Recently, Dan Brun, the sales manager has expanded the lines of products to encompass new flavors (C & C) which were in high demand by customers...
Activity based costing and management
Opsonin Inc manufactures three products for the pharmaceuticals industry . product P annual sales, 8000 units. product Q annual sales, 15 000 units. product R : annual sales, 4000 units. The company uses a traditional, volume-based product costing system with manufacturing overhead applied on the basis of direct labour dollars. The product costs have been calculated as follows: Product P Product Q Product R $52.50 12.00 (0.6 hr x $20) 105.00 ($12x875%) Raw material Direct...
Sky Plasties: Activity-Based Costing System Case Study Mr. Sami Sultan, Chairman of Sky Plastics, was studying a schedule showing the product costs for each of the company's three plastic water containers. He had been thinking of how to increase the while facing the international competition for plastic water containers. Usually, Sami time to review company's performance reports. Since profits were being made, Sami believed that company's exports did not spend a lot of accounting to was the responsibility of the...
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