Bus 630 Week 5 Assignment

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FedEx 1 Mandel Adams BUS 630: Managerial Accounting FedEx Instructor: Oscar Lewis July 9, 2012 FedEx 2 * What is FedEx’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operations excellence, or product leadership customer value proposition? What evidence supports your conclusion? I believe the company is relying on customer intimacy, operations excellence and product leader ship customer value proposition. FedEx states, “Through our holding company and FedEx Corporate Services, Inc. (“FedEx Services”), we provide strategic direction to, and coordination of, the FedEx portfolio of companies. We intend to continue to leverage and extend one of our greatest assets, the FedEx brand, and to provide our customers with convenient, seamless access to our entire portfolio of integrated business solutions. We are pursuing a number of initiatives to continue to enhance the FedEx customer experience, including improving the capabilities of our sales professionals. For instance, through our FedEx OneCall program, we assign a single customer service agent to handle virtually all issues of a customer’s account (form 10 – K 2005).” * What are FedEx’s four main business segments? Provide two examples of traceable fixed costs for each of FedEx’s four business segments. Provide two examples of common costs that are not traceable to the four business segments. “Traceable fixed cost is a fixed cost that is incurred because of the existence of a particular business segment (www.accounting4managment.com).” The four main business segments are FedEx Express, FedEx Ground, FedEx Freight and FedEx Kinko’s. FedEx Express 2 traceable fixed costs are: Express delivery costs and manager’s salaries. FedEx Ground 2 traceable fixed costs are: employees’ salaries and the amount of products that each

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