Questions: Dakota Office Products 1. Why was Dakota’s existing pricing system inadequate for its current operating environment? Dakota’s existing pricing system was inadequate for its current operating environment because the pricing was based on traditional allocation of overheads. The result of which were that the actual costs incurred for fulfilling the orders of customers were not ascertained. There were two effects of this method. First‚ the overall prices of all the products increased
Premium Costs Price Accounts receivable
II Dakota Office Products Q1) Why was Dakota’s existing pricing system inadequate for its current operating environment? The existing policies being followed by Dakota regarding Accounts receivables are a major issue‚ which is affecting its payment of working capital line of credit (@10%). Customer A pays its bill within 30 days‚ whereas B takes up 90 days or more. Dakota can achieve sufficient liquidity‚ if it tightens its credit policy. | | | | | 2) Develop an activity based
Premium Accounts receivable Cost driver Profit
inadequate for its current operating environment? Profit margins varied based upon the size of the order‚ larger orders were more profitable than small orders. Based upon customer order size‚ prices should have been varied and the cost determination of the DOP should have been evaluated as it generated a loss. 2. Develop an ABC system for Dakota based on Year 2000 data. Calculate the activity cost-diver rate for each activity in 2000. a. Order Entry i. Order Entry Expenses/Order Lines ii. $800
Premium Profit Variable cost Costs
Dhara Rami ACCT 442 Dr. Szendi Date: November 2‚ 2014 Towson University Dakota Office Products Case Analysis Dakota Office Products Case Analysis Introduction Dakota Office Products (DOP) is a reseller and supplier of office products. DOP is a regional entity. It has institutional and commercial businesses as clients. DOP has a good loyalty and customer confidence from its client. In order to increase profitability‚ DOP started “Desk top” delivery for its loyal customers. In this service
Premium Costs Cost Accounts receivable
Dakota Office Products Background • Regional distributor of office supplies to institutions sand commercial businesses • Comprehensive product line • Excellent reputation • Several distribution centers Process • Old: • After customer orders received‚ orders were accumulated within the warehouses and prepared for shipment • Used commercial truckers to deliver • New Option: • “Desk Top Deliveries” • Delivered products directly to locations • Small fleet of trucks • 2% upcharge on products Pricing
Premium Electronic Data Interchange Question Consultative selling
CONSULTAS Nombre diana carranza Consulta cuanto puedo invertir para formar una empresa constructora Depende cuanto en activos asuma o si toma servicios. Nombre LUCIA SUÁREZ QUEREVALU Consulta Hola‚ quisiera que me ayuden a crear mi peluquería en Oquendo‚ pertenece al distrito de Ventanilla. Qué hago primero?‚ monto la peluquería ‚o antes saco una licencia de funcionamiento y su RUC?. Aun no he pedido el préstamo‚ pero he estado averiguando precios de muebles y equipos y me parece que saldrá algo
Premium Perú Empresa Conocimiento
Description In ACC 301‚ you discussed the Dakota Office Products (DOP) case and were asked to design the ABC system. For this assignment in BCOM 250‚ you will take what you learned in ACC 301 and write a report recommending that DOP use activity-based costing to determine its pricing to customers. You do not need to go into deep detail about how you would design the ABC system. You will work with a team of 4-5 people to produce this deliverable. Assume that your group is part of the accounting staff
Premium Cost Costs Activity-based costing
1 Dakota current allocates warehousing‚ distribution and order entry cost equally to each customer. DOP’s pricing system is generally independent of the specific level of service provided for customers. They just chose a single cost drive. However‚ it’s not believable and proper to use this simple method to analyze costs when costs are more complex. So we need to use activity-based cost system to chose different cost drives and allocate costs based on the activity. 2 We identify four different activities
Premium Cost Costs Expense
Office Dakota Products Case Analysis Course: BUSA 5061 Managerial Accounting Students Name: Teresa Willette Professors Name: Dr. Conner/Dr. Pollard Date 3/20/2011 Executive Summary The following analysis is written for Dakota Office Products to evaluate current business operations and recommend future actions necessary to ensure company success. In the analysis of the company we will identify inefficient business practices that have led to the companies first profit loss in its history. We will evaluate
Premium Costs Management accounting Cost accounting
Why was Dakota’s existing pricing system inadequate for its current operating environment? - profits only when clients placed large orders for cartons - real drop of profit if many clients place small orders - wrong cost determination for individual customers - wrong cost determination for new services provided by DOP (to small charges for the “desktop” delivery‚ then the actual cost of it) 2. Develop an activity-base cost system for Dakota Office Products based on Year
Premium Profit Consultative selling Costs