Activity Base Costing Jessie Jones Accounting 599 Professor Carr July 17, 2011 Evaluate the advice that Chuck Davis gave to Leonard Bryner and explain whether you agree or disagree with the advice. Leonard gave Chuck information without investigating or taking a look at the problem with their firm. Leonard was attempting to see why they were losing market share to the company’s competitors because they were losing bidding wars. Chuck felt the current policies to controlling cost were adequate and chose not to evaluate the company using Activity Based Costing (ABC). ABC is a method of evaluating the cost of providing products and services by activity.
Frank Campbell, the director of United Thermostatic Controls’ Southern Division, was unsatisfied with the division did not meet the targeted budget for 2010. He investigated and found a way to increase the sales revenue by sending shipments out to his customer before the schedule delivery date which violated the FOB shipping point. Campbell had found a way to increase sales by sending out two shipments to his customers; these shipments were not supposed to deliver until 2011. The customers had specified when they wanted their merchandise to be ship. Campbell had sent the merchandise and reported the sales revenue in the financial report instead of offering a discount to the customer so that the merchandise can be recorded and shipped in 2010 instead of 2011.
Although Nestle’ is the world’s largest food company, management at Nestle’ felt that they could purchase Perrier’ and gain an advantage over its competition in the bottled water market. Based on the case study regarding “Problems and Perrier”, located in chapter 6 in our text, Nestle’ purchased Perrier’ after the company began to lose profits in 1990. This loss in profits began when a minute amount of benzene was discovered in a bottle of its water sold in the US, thus causing a swift decline in Perrier’s US sales. The importance of the images concept to the change management initiative in this case was Nestle’s desire to take over Perrier’, become the premier leader in the bottle water industry and improve on its profit margin. The application of the change management initiative lacked direction from the new leadership and input from its employees.
In my educated opinion, I do not think the author is incorrect or false in any of his conclusions. If I had to see one other thing addressed, it would be to discuss more of the apple shortages in other areas around the world such as New York and Michigan. I think the article would be better if it talked about how the lack of apples has affected the economies of other areas. Since there is such a shortage of apples in those areas, it can be assumed that there is probably an excess of workers there, so I am curious as to how those areas are dealing with extra
But Walmart’s response clearly showed that they no longer needed interested in the brand. Due to this exercise LOP learnt that KDH was not involved with Walmart’s decision to drop the brand. Nichol continuously tried to probe Walmart’s interests and plans and shared his issues of exclusive contract and long term loans, the senior management sympathised and stated that they want profitable suppliers. After six months of intensive negotiations to understand the reason for dropping the brand, he figured that due to globalization Walmart’s interest
Cork is used in other products but the wine industry prefers the natural use of cork, until recently. 2 If consumers love corks, why are the producers not providing what their customers want? Even with the love of cork, consumers are not being provided the cork because of new retailing markets from Australia, Chile, and California. These countries are breaking into the market and have chosen to use the modern way of sealing wine bottles with rubber corks or plastic screw caps. No longer feeling the cork “taint” has become important to the industry.
This will leave no Muscadines for Marshall. This output contract will be beneficial to Wayne’s company, since it will allow the company to get a higher price for the Muscadines, and if he has a bad year due to drought, or other problems, he will only have to supply the output that is possible in good faith (Output, Requirements, and Exclusive Dealings, 1975). When Wayne stops doing business with Marshall; Marshall will have at least three legal causes of action. The first being that there may be a breach of contract. This could possible arise from the contract that was signed by Wayne’s son.
The launch that Lora has to decide on goes against typical United Cereal (UC) strategic, operational, and organizational standards that have been put in place for many years. “The UC Way” is an iconic phrase that has been embedded in the corporation. From an operational standpoint, UC was a pioneer in the use of research and focus groups. UC puts a very high value on extensive market testing prior to launching a new product. Because of the initial unsuccessful testing of the blueberry based cereal, Healthy Berry Crunch was not put through the normal testing to ensure complete customer acceptance, it did show good results in limited testing.
Military Denied Access to Teens Some schools believe that the military should not target teens in high school because they are too young and that they should try to go to college first. They say the military life is not well suited for young teens still in high school or fresh out of school. “Recruiters are targeting certain teens” (Ayers 87.8). The schools that military recruiters do have full access to teens are “offering higher bonuses and shortened tours of duty,” just so the teen can think about the military. (Ayers 87.8) Wealthy Kids Don’t Enlist The reason wealthy kids do not enlist is that they can afford to go to college and not have to worry about the military paying for it.
‘Got Milk’ showed their idea of a commercial, however because it put Poppin’ Fresh in a negative light, Pillsbury decided to deny the advertisement spot. Pillsbury could have made millions of dollars from the ‘Got Milk’ campaign, however because they wanted to keep the Doughboy’s integrity, they chose to forgo the money. It was interesting to see Pillsbury refuse the milk farmers of America. The ‘Got Milk’ campaign is arguable one of the best advertising schemes ever. Anything that campaign touches will almost guarantee the product it touches, great success.