Preview

Rowe Potter Works - an Analysis

Better Essays
Open Document
Open Document
3567 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Rowe Potter Works - an Analysis
Running Head: ROWE POTTERY WORKS

Rowe Pottery Works: Putting a Pottery Business Back on Track
Margaret Jones
Baker College

Abstract
In the past two and half years, Rowe Pottery Works has experienced financial losses despite the ever-growing demand for salt-glazed pottery. The pottery production department is mainly responsible for the losses. A new controller was recently hired to evaluate the processes and make recommendations that will bring this once profitable business back on track. This paper provides an overview of the pottery business by detailing the process of making salt-glazed pottery. The concerns and issues surrounding the pottery operation are discussed. Problems such as inventory, labor, productivity, accounting system, and sales are assessed. Recommendations are made, which will address the concerns and problems of the pottery operation. Rowe Pottery Works was once a profitable business but somewhere along this path, they got lost. With the right processes, procedures, and systems in place RPW can get back on track and return to profitability.

Rowe Pottery Works: Putting a Pottery Business Back on Track
Business Overview
Rowe Pottery Works (RPW) emerged into the pottery business world in 1975. Founded by Jim and Tina Rowe, this once small blacksmith shop is now one of the largest suppliers for salt-glazed pottery. Jim, being an art student, knew secretive techniques for making 19th century salt-glazed pottery. He added his personal touch and created unique salt-glazed pieces that were sold only in art fairs and their small shop. The Rowes decided to change their product line during the 1980s, hence the rebirth of the Early American crocks and jugs. The demand for quality Early American crockery was increasing rapidly. With limited competition, Rowe Pottery Works went into production with their new product line (Rowe Pottery Works, 2003).
All of the pottery at RPW is handmade. Unlike pottery from production lines,



References: Hansen, D.R., & Mowen, M.M. (2003). Management Accounting (6 ed.). Mason, OH: South-Western. Kinsella, S.M. (2002). Activity-based costing: Does it warrant inclusion in A Guide to the Project Management Body of Knowledge (PMBOK guide)? Project Management Journal, 33, 2, 49-56. Retrieved October 6, 2003, from ProQuest database. Rowe Pottery Works. (2003). Rowe Pottery Works Homepage. Retrieved October 2, 2003 from http://www.rowepottery.com/index.html. Ruark, R. (2001). Kiln Connection: Buying a Kiln – A Critical Decision. Retrieved October 8, 2003, from http://www.ceramicindustry.com/ci/cda/articleinformation/features/bnp__features__item/0,2710,25151,00.html.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Rowe Pottery Works, Inc

    • 315 Words
    • 2 Pages

    Yes, Row Pottery Works, Inc. should purchase the new Kiln because it would help them in the future. Rowe Pottery Works, Inc. has experienced losses for two and a half years. RPW’s operations are the main source of its losses as stated in the case. Continued losses were still present even thou attempts were made to control costs. The company was also in the process of investing in a new Kiln that had hopes of improving the company. Before that decision was made, I had to calculate numbers in order to witness whether or not purchasing the Kiln would be a good idea. The liquidity of inventories is very important in terms of profitability. I would recommend RPW to invest in the new Kiln because in the long run, it would be beneficial to the company. Future strategies for cost controlling and capital budgeting and management is going to be critical for RPW’s operation considering its insufficient debt capacity. Even though the sales of the company remain strong, the fixed costs are too high. Attempts to reduce the fix costs should be the key to increase company…

    • 315 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Cracker Barrel Inventory

    • 1271 Words
    • 6 Pages

    Many companies have inventory in which they must manage in order to supply the demand of the consumer or customer. Our project is based on the research of Inventory management and how it is applied or used in the Cracker Barrel Restaurant. In this project, we have elected to explain and determine how the company develops its inventory plans to support the products or services they provide to the consumer. On our field research we asked a series of questions to one of Cracker Barrels' Associate Managers Tom Kelly trying to get a general idea of how or what methods they use to manage the company's inventory.…

    • 1271 Words
    • 6 Pages
    Good Essays
  • Better Essays

    Jet2 Task 4

    • 2238 Words
    • 9 Pages

    The main difference between activity based costing and the traditional system is that activity based costing requires four steps to build its cost point. Traditional costing uses one rate where first, activity based costing must identify each activity and estimate its total and indirect cost. Second for activity based costing is that the cost driver for each activity must be estimated along with the total quantity of each driver’s allocation base. Third the cost allocation for each activity must be computed. Fourth costs to cost object are allocated. Activity-based costing focuses on activities. The costs of those activities become the building blocks for measuring (allocating) the costs of products and services. (Horngren, Harrison, Jr & Oliver, 2008) This method of costing does require more time to compute the cost to the activity yet it earns that money back plus dividends by having a more accurate forecast of the true costs that are associated with each activity.…

    • 2238 Words
    • 9 Pages
    Better Essays
  • Satisfactory Essays

    Acc349 Reflection Summary

    • 297 Words
    • 2 Pages

    One advantage of Activity-Based Costing system is it has more accurate overhead cost allocation because there are more cost pools, the costs in each pool are more similar, and allocation is based on activities that cause overhead costs. It is more effective overhead cost control by focusing on processes or activities and focuses on relevant factors by assigning costs to any cost object that is of interest to management. Lastly, it allows better management of activities by helping managers identify the causes of costs and the activities driving them. The disadvantages of Activity-Based Costing are its cost to implement and maintain ABC requires management commitment and financial resources and its uncertainty with decisions remain and management must interpret ABC data with caution in making managerial decisions.…

    • 297 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    BUSI 601 DB 1 response

    • 530 Words
    • 2 Pages

    Discussion Board One asks the student to select a recognized company and a Contemporary Management Technique from Cost management: A Strategic Emphasis by Blocher, Stout, Juras, and Cokins (2013). The student is instructed to draw a parallel between the chosen company and technique, and elaborately describe how the technique would effectively aid in maximizing the company’s success. To complete this assignment, Johnathan Bradley describes the Ford Motor Company and activity-based costing. He describes the Ford Motor Company as a dominant company within the automotive manufacturing industry, and uses research performed by Eggers and Bangert (1998) to define activity-based costing as a tool that measures costs based on segmented activities. Jonathan effectively uses the study to capture the advantages of activity-based costing, and gainfully applies these findings to Ford Motor Company. He illustrates how the use of activity-based costing would support the company’s critical success factors by increasing quality levels and improving cycle time. Additionally, Jonathan explains how the utilization of this Contemporary Management Technique would aid Ford Motor Company in effectively dividing costs based on activity, which would allow the company to ensure maximum efficiency throughout all activities.…

    • 530 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Abc Company - 1

    • 1244 Words
    • 5 Pages

    3) The McGraw-Hill Companies, Inc., Chapter 9: Activity-Based Costing, csus.edu, 2011, pdf. Retrieved 18 December 2012 from http://www.csus.edu/indiv/p/pforsichh/documents/ACCY121FinalExamInstrManualchs9_11_13_16_Appendix.pdf…

    • 1244 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    AC202 Ch17

    • 273 Words
    • 2 Pages

    The traditional costing system of assigning overhead cost is only an estimated number used from values/information gathered from the prior year(s). Using the activity-based costing system in addition to the estimated number, the formula also puts into account any cost drivers that may drive up (or down) the cost. The overhead cost using this method is related to an activity.…

    • 273 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Global Electronics

    • 8642 Words
    • 35 Pages

    Shields, M. 1995. An empirical analysis of firms ' implementation experiences with activity-based costing. Journal of Management Accounting Research 7: 148-166.…

    • 8642 Words
    • 35 Pages
    Powerful Essays
  • Satisfactory Essays

    Learning Objective: 03-01 Understand the basic approach in activity-based costing and how it differs from conventional costing.…

    • 786 Words
    • 7 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Rupert was an American ceramics artist. His pots are known for innovative design and the decoration of high fired pots. Rupert wrote "It is my hope in making these vessels that as the perception of their beauty diminishes over time, they will sustain themselves by pleasant usefulness." He graduated from the college of Claremont, CA and became a ceramics and sculpture professional. He designed dinnerware, shapes, and patterns for the Franciscan company. Rupert won prizes for the ceramics he made. Deese’s work is ongoing and sold too many people. The stoneware he made was showed off to private and public…

    • 101 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Ceramic painting has become a huge industry in the last 10 years throughout the United States. Making pottery has been around for centuries where you start from scratch with clay and work your way up. In the modern industry of ceramics, they have cut out all the hard messy parts of the job so that they can get manufactured…

    • 1133 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    This case focuses on decision-making benefits of activity-based costing relative to the traditional approach. It also offers an opportunity to discuss the cost/ benefit trade-off between simple ABC systems versus refined systems, and the potential benefit of using capacity rather than expected sales when allocating fixed overhead costs. (Related to Chapter 4, Activity-Based Costing.)…

    • 11463 Words
    • 46 Pages
    Powerful Essays
  • Powerful Essays

    A development of the principles of activity based costing (ABC) is activity based management (ABM).…

    • 1476 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    The Temptation of Sir Percival by Arthur Hacker was completed in 1894. Percival is one of King Arthur's legendary Knights of the Round Table. The painting portrays when Percival was tempted with things of the flesh here, in the form of a beautiful, but predatory women. Sir Percival is a holy knight of the Round Table. In this picture he walks to an isolated place by the sea. Temptation meets him here in the shape of a woman of great beauty, who gives him food and wine. In the story, the woman is actually the devil in disguise, and she is tempting Sir Percival in order to keep him from attaining the Holy Grail. She flatters and confuses him until the very last moment, when Sir Percival realizes his danger. The Temptation of Sir Percival is now kept in the Leeds City Art Gallery ("Chapter VII: The Quest for the Holy Grail.").…

    • 756 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Ceramic Ethnoarchaeology

    • 3893 Words
    • 15 Pages

    Ethnoarchaeology includes a joint approach of archaeology and anthropology to understand the past and present cultures. It is a branch of ethnography, which deals with the behavioral correlates of material remains. Gould (1968) termed it as ‘living archaeology’ and Kleindienst and Watson (1956) defines it as ‘action archaeology’. Stiles defines ethnoarchaeology in more comprehensive perspective as, ‘encompassing all the theoretical and methodological aspects of comparing ethnographic and archaeological data, including the use of ethnographic analogy and archaeological ethnography’ (1977, p.88). In other words, it is a living archaeology in which archaeologist does his field work among living communities for the analysis of unearthed artifacts and material remains. It is assumed that contemporary primitive societies represent examples of past stages of human culture. Analogies between living societies and ancient societies can yield important information to construct realistic models of ancient societies and their functions. The practice of this discipline provides a great understanding about ancient artifacts and the people who made them. It is not only the recording of material remains but also the interpretation of them by quantitative analysis, sampling strategies and observations (London 2000, pp.1-2). Therefore, this approach gives extremely valuable insight into prehistoric and protohistoric human behavior. In this respect Ethnoarchaeology makes a live link between human and their artifacts (David1992, p.352). This approach is mainly used by archaeologists for the explanation of pottery, stone tools and architectural remains, but it is also useful for the reconstruction of cultural system.…

    • 3893 Words
    • 15 Pages
    Best Essays

Related Topics