Free Essays,College Free Essays,Free College Essays at Anti Essays

In this module I’m going to review my organization KJC Services, and its Activity Based Costing (ABC). I am to identify a product or service in my organization that could use ABE. Then I am to identify at least tow activities for the ABC and the appropriate cost drivers for those activities. I am then to estimate the application rates for each cost driver. If I cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if data were factual. In this report I will include the name and nature of the organization the activity and time period you used, the inputs I need, my results and any implications from my results.
KJC Services is an on-line Internet store we started on 24 July 2002 with eBay. Tania and I had no idea what eBay or the Internet was about until we got into the business. Fortunately, Tania and I started off on the right foot from jump street and developed the name KJC Services from day one; getting a license and permit to sell in the State of California. Since the day we started this business, we have tracked every sale and transaction. We developed an Income Statement, Balance Sheet and Cash Flow statement ourselves using Microsoft excel as a guide and the funny thing is, we didn’t even know what those financial plans were about and still know very little about them. I feel by researching our own business would be so beneficial for us.
For the year of 2007 our sales and productions was roughly about 2000 units the sale prices for the units varies because of the costumer request. Since the work is done mostly by my wife and I labor cost is not an issues. Machine cost is primary computers and printers which were not purchase during the fiscal year of 2007. With 2000 units sold and prices averaging between $20.00 and $300.00 our sales for that year in profits were about $20.000.