Kirana Store Essay

1195 Words5 Pages
Contents 1. ABC’s brief history and business segments 2. Hardware supply chain management overview 3. Hardware product costing methodology 4. Controlling through variance analysis 5. Fixed and variable cost usage in decision making 6. Budgeting Process 7. Consulting Costing 1. ABC’s brief history and business segments ABC Corporation was founded two years after Microsoft in 1977. Today, ABC is the second largest information technology company in the world. ABC offers complete stack of solutions ranging from Servers and Storage, to Database and Middleware, through Applications and Cloud. ABC leads the industry in Database software. Following are the broad business segments of ABC Corporation. i. Software and Services & ii. Hardware Software revenues are split between new licenses, renewals and product support, and the Services revenue is earned through consulting, education and on-demand services. In hardware line of business, ABC is into manufacturing and selling of Servers and Storage systems. ABC is a late entrant in hardware business segment. Initially in 2009, the company had partnered selling HP servers that come with ABC database software pre-installed. However after acquisition of Sun Microsystems in 2010 ABC is into full scale manufacturing and marketing of hardware products on its own. This paper provides insight into ABC’s hardware line of business and explains supply chain overview and Cost and Management accounting systems. This document also gives a small glimpse into consulting costing in cloud area 2. Hardware Supply Chain Overview The supply chain activity is bifurcated into two broad areas i.e., HUBs and SUBs. The procurement and manufacturing activities are carried out by HUBs, and the world wide sales to end customers happen through

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