Preview

Abc Apparel Case

Satisfactory Essays
Open Document
Open Document
648 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Abc Apparel Case
ABC Apparel Case
| |
| |
|Questions |
| | |
| | |
|1 |What are the respective amounts and percentages of Materials, Labor, Overhead and Other in total COGS for ABC? |
| |* Illustrate on an Excel pie chart showing amounts and percentages for each slice. |
| | |
| |[pic] |
| | |
| | |
| |
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Week 5 Complete assignment
    • 399 Words
    • 2 Pages

    Week 5 Complete assignment

    (B) A good example of how ABC systems are better than the traditional costing systems is represented in the case of Hammer Products, Inc. In order to compare them, we first need to calculate the total cost per unit under each costing system, and then determine how much money each product will generate; also known as profit margin per unit. The first step to compute the total cost per unit under the traditional costing system is to determine the predetermined overhead rate that will be used in calculating the manufacturing overhead per unit. As shown in exhibit1, the predetermined overhead rate is obtained by dividing the total estimated manufacturing overhead cost for the year by the total estimated number of hours applied to production. In this case, the predetermined overhead rate turned out to be $48dlh; which means that for every hour spent on the production of these products, $48 will be applied to manufacturing overhead. Once the predetermined overhead rate is determined, we can figure out how much money has been applied to each, single unit of production by multiplying the predetermined overhead rate by the number of direct labor hours that it took to produce each unit. Then, if we add the direct materials and direct labor amounts that were previously given to the manufacturing…

    • 399 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Unit Level and Multiple Level Costing
    • 303 Words
    • 2 Pages

    Unit Level and Multiple Level Costing

    D: Whenever a costing system is used, it should identify the various activities at a corporation and use multiple cost drivers to assign overhead costs and indirect costs to products. ABC improves the accuracy when compared to traditional costing systems, such as the one CarryAll used. It gives a better understanding of overhead. ABC utilizes unit cost rather than just total cost. If CarryAll’s president is interested in understanding why ABC is important, he needs to look at the Operating Profit because it looks at all activities versus looking at…

    • 303 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Vera Bradley Case
    • 1327 Words
    • 6 Pages

    Vera Bradley Case

    Vera Bradley is a start-up company which began from the basement of a home and grew to be a successful design-oriented bags & luggage company. As sales grew rapidly, Vera Bradley is currently facing some issues, one of among which will be addressed in this paper.…

    • 1327 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Better Essays

    Bagby Case
    • 1051 Words
    • 5 Pages

    Bagby Case

    When making a choice between specialized and broad task assignments, Bagby will be faced with trade-offs. The advantages to Bagby choosing specialized task assignments are exploiting comparative advantage and lower cross-training expenses. Under exploiting comparative advantage “specialized task assignment allows the firm to match people with jobs based on skills and training and correspondingly has employees concentrate on their particular specialties” (Brickley, Smith, & Zimmerman, 2009, p. 395). Being that the employees will be highly specialized it would be expected that these employees would require less supervisor and less training to perform their tasks. Additionally, it is assumed that they would also yield a higher output. The benefits to lower cross-training expenses are realized because the employee does not need to be trained on more than one task. This reduces training expenses and reduces the need for all employees to have the same level of experience, education, or technical expertise. If part of the process requires an education, using specialized task assignments you would not have to have all employees have an education; only the employees working that task would need the education requirement. This would save the company money because they would be able to higher lower level employees to do other tasks. Under broad task assignments, it is more expensive to have all employees trained on every task, but it also allows for flexibility should the need arise to move employees to different task assignments.…

    • 1051 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    John Lewis Swatch Case
    • 841 Words
    • 4 Pages

    John Lewis Swatch Case

    Formed in 1983, watchmaker Swatch was the product of a previous economic downturn. It is painfully ironic, then, that the current recession is causing it such woes.…

    • 841 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Denim Finishing Company Case
    • 3382 Words
    • 14 Pages

    Denim Finishing Company Case

    Mrs. Kelsey Bowser using the ABC method decided to use the number of garments as the cost driver of the change-over costs. Nevertheless, I argue that this was not the best possible choice. I will try to defend my point using the following example. Let’s assume that Guess Who Jeans demands 600, not 500 garments per shipment. Although the number of garments changes, the total change-over costs would stay the same, because no additional retooling of the machine would be necessary. The whole change-over process takes 3 hours regarding if the number of garments is 200, 500 or 800. Furthermore, let’s strictly theoretically assume that the company is able to achieve some extra capacity and one batch is now composed of 150 garments instead of 100 garments. Still, although the total number of garments would vastly increase, the change-over costs would be altered only partially. The opportunity cost measured as a lost contribution margin would slightly increase, but the out-of-pocket costs would stay the same, as the wages of the employees and supplies costs will not change. Thus, it is clear that the number of garments is not the proper cost driver for the change-over costs.…

    • 3382 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Primark Case
    • 3712 Words
    • 15 Pages

    Primark Case

    The fashion industry is criticized widely for not maintaining the ethical standards. From the use of animal fur, exploiting child labor, low wages. Promoting superficial image of women and racial discrimination, the fashion industry has caused its fair share of controversy and bad press. The complex thing about ethics is that it has different meaning for different individuals. Some might consider a particular issue extremely offensive and unethical while, for a different individual the same issue would not be unethical or offensive. It is a decision of an individual to consider and different people have different feeling about issues. For some wearing cloths made through child labor would not be a big deal but for another individual this would be a wrong act.…

    • 3712 Words
    • 15 Pages
    Powerful Essays
    Read More
  • Good Essays

    Ralph Polo Lauren Case
    • 787 Words
    • 4 Pages

    Ralph Polo Lauren Case

    Polo Ralph Lauren is an American apparel company that was founded in the 1970’s. When it was founded it had three branches in the apparel business: design and development, manufacturer management, and inventory/stock handling. Because they did not want to own factories, they outsourced the garment manufacturing to Luen Thai, an apparel manufacturing company in China.…

    • 787 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Case Study – Activity – Based Management in Shell Gabon
    • 1463 Words
    • 6 Pages

    Case Study – Activity – Based Management in Shell Gabon

    The items included in these calculations are the direct costs from Table 3 and the indirect (allocated) costs from Table 4. The first 3 columns of numbers from these graphs correspond to the Table 5 question marks that we are looking for. Included in these calculations are the staff benefits which are 35% of the staff salaries and the staff services which are 30% of the staff salaries.…

    • 1463 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Nike Case
    • 1086 Words
    • 5 Pages

    Nike Case

    Founded in 1994, Nike Football has grown immensely to become one of the two market leaders in football apparel and footwear. Recognizing the vast opportunities the 2010 World Cup offers for their growth and differentiation from the competitors, they are considering a shift in their marketing strategy.…

    • 1086 Words
    • 5 Pages
    Good Essays
    Read More
  • Best Essays

    Nike Case
    • 3960 Words
    • 16 Pages

    Nike Case

    Abstract: The purpose of this report is to critically evaluate the strategies that Nike has created in tandem with the Football World Cup. The report examines the performance of Nike in relation with the Football World Cup and also tried to find out whether there were any alternatives to get an even better result. In this report I also compared Nike with its closest competitor, Adidas and evaluated the critical differences between these two organizations based on the marketing strategies that they have adopted to become successful.…

    • 3960 Words
    • 16 Pages
    Best Essays
    Read More
  • Good Essays

    Levis Case
    • 910 Words
    • 4 Pages

    Levis Case

    1. Do you think that Levi’s was correct to keep the Levi Strauss name on its Signature line? Or would it have been better off creating a completely new brand name? Present both sides of the case. Take and justify a position.…

    • 910 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Nike Case
    • 538 Words
    • 3 Pages

    Nike Case

    Phil Knight and Bill Bowerman started their company with a vision of serving the athlete. That vision was shared by their first employees, who were committed to the company but who needed more detailed directions: They needed to know what was appropriate and what wasn’t when it came to conducting company activities. Knight responded by issuing a list of guiding principles at a crucial time in the company’s history. It was 1977, and the 13-year-old company was prospering. Sales had reached $28 million, but Knight wasn’t satisfied. Because he wanted to be number one and beat his staunch rival, Adidas, he conceived this list of principles in the faith that they would foster the behavior that would get him and his company where he wanted to be: NIKE PRINCIPLES 1. Our business is change. 2. We’re on offense. All the time. 3. Perfect results count—not a perfect process. Break the rules; fight the law. 4. This is as much about battle as about business. 5. Assume nothing. Make sure people keep their promises. Push yourselves; push others. Stretch the possible. 6. Live off the land. 7. Your job isn’t done until the job is done. 8. Danger Bureaucracy Personal ambition Energy takers vs. energy givers Knowing our weaknesses Don’t get too many things on the platter 9. It won’t be pretty. 10. If we do the right things, we’ll make money damn near automatic. Knight was right about number 10. By 1980, with 2,700 employees and revenues of $270 million, Nike had surpassed Adidas and dominated the U.S. market. New Statements for New Missions By the mid-1980s, however, Nike was toppled from the top spot by a new rival—Reebok. Women had discovered Reebok’s soft leather shoes and its sales took off, while Nike’s declined. To regain its top place, Nike needed a new mission—namely, “Crush Reebok.” It worked—Nike soon regained industry leadership—but the lead was a little too narrow for Phil Knight’s comfort. So he issued a new…

    • 538 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Cost Sheet
    • 489 Words
    • 2 Pages

    Cost Sheet

    COST SHEET – FORMAT |Particulars |Amount |Amount | |Opening Stock of Raw Material | *** | | |Add: Purchase of Raw materials |*** | | |Add: Purchase Expenses |*** | | |Less: Closing stock of Raw Materials |*** | | |Raw Materials Consumed |*** | | |Direct Wages (Labour) |*** | | |Direct Charges |*** | | |Prime cost (1) | |*** | |Add :- Factory Over Heads: | | | |Factory Rent |*** | | |Factory Power |*** | | |Indirect Material |*** | | |Indirect Wages Supervisor Salary |*** | | | |*** | | |Drawing Office Salary…

    • 489 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Marketing and Selling Overheads
    • 530 Words
    • 3 Pages

    Marketing and Selling Overheads

    Anhad Sdn. Bhd. manufactures car alarms, and its trading results for the year ended 31 October 2013 are as follows:…

    • 530 Words
    • 3 Pages
    Good Essays
    Read More

Related Topics