MAC 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
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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
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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. Second
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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
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Case: Allied Office Products Company A costs Allied less money to service‚ they are also a much smaller source of potential growth for the company. Company B on the other hand utilizes far more services and has the potential to earn Allied much greater revenue. With the information we have from the new ABC costing scheme we now know that Allied should be charging far more for the services rendered to company B‚ and less for the services used by company A. Current information shows that company
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5/carton c. DOP i. (10% of warehouse personnel expense + delivery truck expense)/ DOPs ii. (.1*2‚400‚000+200‚000)/2‚000= $220/carton d. Handling i. (warehouse expenses + freight)/ orders ii. (2‚000‚000+450‚000)/24‚000= $102.08/order 3. Using your answer to #2‚ calculate the profitability for Customers A and B. Customer Cost A B Units Cost Units Cost Order Entry $ 5.30 60 $ 318.00 180 $ 954.00 Carton Process $ 464.50 200 $ 92‚900.00 200
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Question 1 Activity Based Service Cost for the TFC business Activity | Total Activity Cost (’000) | Activity Driver | Usage | Actual Cost | Storage | $ 1‚550 | Number of Cartons | 350‚000 | $ 4.43 | Requisition Handling | $ 1‚801 | Number of Requisition | 310‚000 | $ 5.81 | Basic Warehouse stock selection | $ 761 | Number of Requisition × 2.5 lines | 775‚000 | $
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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
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Education in the Midwest can it provide relocation benefits choose? Staff relocation requires a lot of planning and consideration‚ especially if you need to move some or all of the employee is transferred to a place far away from their home‚ on their part will lead to additional shipping costs. Who has been fixed in place‚ establish their roots not far from their current place of work‚ moved to a new and far regions will mean they will have to live away from your family of employees. In addition
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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
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