trident acc202 module 4 casestudy and SLP

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Description

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.

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