Traditional allocations with one resources to spread overhead often charges products an "average rate" and so fussy and difficult products get a break (charged less than they consume or "under costed") and easy low-hassle products look worse than they are (charged more then they consumer or "over costed"). Companies that benefit from ABC are those that have significant levels of variable overhead and those with products that use disproportionate share of overhead resources. Companies with small overhead or products that all use overhead in about the same proportion would get about the same overhead allocation under traditional and ABC methods. Since ABC methods are more work (so more expensive), if there isn't a benefit, it is better to stick to a simpler and cheaper method. Krishnan (2006) implemented ABC at a university (actual university was kept anonymous in the study) to help them understand their costs and cost drivers in order to better understand why their operation costs were so high.
Additionally, Costco has a goal of 3) maintaining its employee workforce, as high employee job satisfaction has translated into exceptional customer service and low employee turnover (Costco, 2012). The three standards to be chosen would be inventory turnover, store profitability and employee satisfaction. As I noted prior, the key to Costco’s success has been its ability to acquire popular goods and sell them quickly at minimal operative cost. A measure of inventory would be able to evaluate any significant trends in goods. If the inventory were to rise significantly for any particular item, it would indicate either the item is not popular, viewed as too expensive, or may be held up, off-site warehouses (depots) However, the turnover of goods is maximized by a seven day, 69 hour work, which includes weekends.
The company has been affected in a good way because this act allows the company to have the right to sell their products and services. Which allows the business to keep running and trading. * Consumer protection from unfair trading. This law is in place to prevent traders are honest and fair when offering their products and services for sale. Examples of how business have been affected by consumer protection from unfair trading- 1.
a and b. e. a, b and c. True and False 1. The true test of supply’s contribution is when the chief executive officer and the management team recognize the value of supply and suppliers in reducing prices paid for goods and services. 2. Sustainability initiatives include the effective and efficient capture and disposition of downstream products from customers and the reduction of the impact of the organization’s supply chains on the natural environment 3. Terms such as purchasing, procurement, supply, supply chain and logistics do not have standard definitions that are widely used across sectors and industries.
A surplus provides additional saving. What we found interesting is that a surplus is not always a good thing when it comes to the economy, and a deficit is not always bad. In the short-run framework, deficits are good for the economy only if the output of the
Assuring competition is critical to maintaining low prices, high quality, and business efficiency. Blair and Lopatke (2008 explained that by eliminating the competition, dominant sellers can increase monopoly profits and deadweight of social welfare losses can occur (p. 442, 439). But not all monopoly companies causes harm, some companies like the water utility, natural monopoly, and is regulated by the government (McConnell, 2012, pp.
Distinguish among operating, investing, and financing activities. Managers’ activities and responsibilities can be classified into three broad functions. List and discuss each function. Identify and discuss the relevant costs in accepting an order at a special price Smith & Company claims that the relevant range concept is only important for variable costs. Explain the relevant range concept and discuss whether you agree with Smith & Company.
d) Receive the part. Question 5 (Objective 4b, 4f) – Reverse auctions: I) Are a poor way to build long term supplier relationships. II) Are used primarily for the purchase of Bottleneck Commodities. III) Help drive quality improvements. IV) Are a useful tool for buying non-critical and leveraged
3. Based on the results in Appendix B, different methods of recruitment are successful or failures based upon the market. The most costly and least beneficial method does seem to be the kiosk method. There is a large up front cost and the benefits and recruitment results do not support the cost. The referral program seems to be successful in the markets in where it is used.
CanGo has very low profitability ratios, low turnover ratios and a high debt equity ratio. All these demonstrates that it’s in Cango’s best interest to take control of their financial performance, and focus on generating cash for the company, make better use of available resources and ensure that they are able to generate profit. The company should not take more debt and need to focus on how to use their existing resources to generate more cash flow to be able to operate and meet their financial obligations. Under the current operating system debt is increasingly being