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trident acc202 module 4 casestudy and SLP

Description

solution.-


Question

Question;

 

module 4 case study

 

 

This case has two separate parts.

 

 

 

Part I

 

 

How can activity based management and activity based costing (ABC) benefit an organization? Specifically, address the following points.

 

 

How does ABC differ from other allocation methods?

 

Describe the main characteristics of ABC.

 

What type of companies tends to benefit from ABC?

 

Comment on a company (research Internet) that has implemented ABC.

 

What type of company is it?

 

Was it successful?

 

Part II

 

 

The below concepts are all applied by many business in an attempt to be more efficient and reduce costs. Create a table describing at least three of the concepts below and how implementation may benefit an organization.

 

 

Lean manufacturing

 

Just-in-time

 

Theory of constraints

 

Total quality control

 

Value chain

 

The submission should be 3 to 5 pages and need to include answers to all the questions listed above. Include references in APA format.

 

 

 

Modular Case Expectations

 

 

It is important to answer the questions above. The discussion should be three to five pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

 

 

 

 

module 4 SLP

 

 

 

 

Herrestad Company does produce and sell two products and the details below will be used to prepare a segmented income statement (showing the income for each product and the total) for the company. Use ABC to allocate all fixed costs to the two products.

 

Background information

 

 

Total

 

 

Prod A

 

 

Prod B

 

 

Beginning inventory

 

 

0

 

 

Units produced

 

 

10,000

 

 

2,500

 

 

7,500

 

 

Units sold

 

 

8,000

 

 

2,000

 

 

6,000

 

 

Selling price per unit

 

 

$255

 

 

480

 

 

180

 

 

Variable costs per unit

 

 

Direct material

 

 

100

 

 

280

 

 

40

 

 

Direct labor

 

 

60

 

 

60

 

 

60

 

 

Variable overhead

 

 

25

 

 

40

 

 

20

 

 

Variable selling and admin. exp.

 

 

10

 

 

13

 

 

9

 

 

Fixed costs

 

 

Fixed manufacturing overhead

 

 

200,000

 

 

Fixed selling and administrative

 

 

100,000

 

 

 

Production runs (not $)

 

 

100

 

 

65

 

 

35

 

 

Number of sales reps (not $)

 

 

25

 

 

15

 

 

10

 

 

Here are the first few lines of the segmented income statement to help you get started. Complete the statement in good format and make sure you allocate the fixed costs to the two products. When done, comment on the information and the relative profitability of the two products.

 

 

Herrestad Company

 

 

Segmented Income Statement

 

 

For the period ending Dec. 31, 2011

 

 

A

 

 

B

 

 

Total

 

 

Sales

 

 

$960,000

 

 

 

$1,080,000

 

 

$2,040,000

 

 

Variable costs:

 

 

Direct material

 

 

560,000

 

 

240,000

 

 

800,000

 

 

The submission should be 2 to 4 pages and need to include answers to all the questions listed above. Show computations, discuss the results and include references in APA format.

 

Paper#43531 | Written in 10-Jan-2016

Price : $27
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