0 BACKGROUND OF THE COMPANY This report is basically consists of the details of the company that we managed to visit‚ AJ Food Industries. It’s focusing on the product costing which is how the company compute its unit costs in determining the proper amount of overhead cost. We proposed the company to use Activity-Based Costing which is multiple bases in considering the overhead cost. Its an advantage for the company that involved with complex manufacturing process. In this study‚ we take mayonnaise
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Activity-Based Costing (ABC) is when you figure out the cost of activities to then discover the cost of products and services. ABC occurs in in four stages. These steps are as follows: identify activities and calculate their estimated total costs‚ identify the allocation base for each activity and estimate the total quantity of each allocation base‚ compute the predetermined overhead allocation rate for every activity‚ and allocate indirect costs to the cost object. I will use the production of a
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David Neeleman‚ founder of JetBlue airline‚ garnered support for his new airline in part using inspirational appeals directed at investors and politicians‚ as well as potential partners. He managed to convince skeptics that he could make his idea of a low cost airline work. Some say Neeleman was successful by “sheer force of his personality” (Kreitner‚ 2005‚ p. 378). Neeleman’s primary power base of reference as can be seen in the way airline employees view him. Tom Krizek‚ JetBlue pilot‚ said‚
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1) Profitability Analysis: Blue Ridge Large Medium Small Total Sales $308‚762.00 $183‚744.00 $318‚024.00 $810‚530.00 Manufacturing Costs $112‚552.70 $72‚164.09 $162‚864.09 $347‚580.88 Sales and Administration Costs $78‚303.47 $50‚790.54 $156‚805.99 $285‚900.00 Total Costs $190‚856.16 $122‚954.63 $319‚670.08 $633‚480.88 Cost as % Sales 61.81% 66.92% 100.52% 78.16% Profit $117‚905.84 $60‚789.37 ($1‚646.08) $177‚049.12 Profit Margin 38.19% 33.08% -0.52% 21.84% Note: For detailed calculations
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the Jet Blue case was former CEO David Neeleman. He was the person who started Jet Blue and formed it to become a low cost airline provider‚ providing luxury and comfort and destinations to various cities at a low affordable cost. He understood how to cut cost and keep operating expenses low‚ and as a result Jet Blue had rapid expansion and flew to 53 destinations in 21 states‚ including Mexico‚ Puerto Rico‚ and the Caribbean. Up until 2007‚ when David Barger took over‚ Neeleman made Jet Blue prosperous
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Jet Blue Melt Down | February 24 2012 | Technology melt down at Jet Blue | Travis L. McDaniel | Jet Blue technology team The technology department at Jet Blue airlines let down the company during the melt down. There were many areas where if the technology department had been on top of its game this melt down would not have been nearly as bad as it was. These range from simple communications problems to issues with lost bags. The first area where technology let down those
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PAU/LBS/2011/10/024 FINANCE - 2 EXAM ANALYSIS OF JET BLUE CASE: PREPARING FOR FINANCING SYNOPSIS OF THE CASE JetBlue Airways Corporation was formed in August 1998 as a low-fare‚ low-cost but high service passenger airline serving select United States market. JetBlue’s operations strategy was designed to achieve a low cost‚ whilst offering customers a pleasing and differentiated flying experience. JetBlue has had a successful business model and strong financial results during that period‚ and
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Saul Ruiz MGMT 320 Jet Blue Hits Turbulence Case Study 1. What types of information systems and business functions are described in this case? The information systems and business functions described in this case are Transaction Processing Systems (TPS)‚ Customer Relationship Management Systems (CRM‚ and Executive Support systems (ESS). The TPS system is responsible for tracking ticket reservations and transactions. The CRM systems provide customers the ability to communicate with
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Activity based costing Activity based costing is an accounting method that is created to provide manager with cost information and other that potentially affect capacity. Activity based costing is used to determine product costs for management report. This method is commonly use as a complete to the company costing system. There are two activity based costing system that most organization use. The two are the official costing system that used for preparing external financial reports and activity
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Case Study 3: Jet Blue: High-Flying Airline Melts Down 1. After the unfortunate storm of February 2007‚ JetBlue’s image was quite diminished. The storm caused the cancellation of almost 1‚900 flights. This in turn caused JetBlue to lose a decent amount of money. Additionally‚ this incident jeopardized JetBlue’s image that previously was stellar. In order for JetBlue to regain their image they would need to take necessary steps beyond refunds and vouchers. I would recommend that JetBlue first
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