Activity Based Costing Assignment

The purpose of this exercise is to help you define and classify your chosen product, and define a specific target market. What a product is, how it supports the company mission, and how it fits

II. Explore the supply and demand conditions for your firm’s product. a) Evaluate trends in demand over time, and explain their impact on the industry and the firm. You should consider including annual sales figures for the product your firm sells. b) Analyze information and data related to the demand and supply for your firm’s product(s) to support your recommendation for the firm’s actions. Remember to

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The task instruction is: Describe 3 of Company G’s strengths related to the marketing of the new product. Support your choice of each of these elements as strengths. Identify two or more strengths that should be considered as core competencies. To satisfy requirements, identify at least 2 core competencies.

Overall Theme We will explore fundamental assumptions of cost functions and discuss the relationships between cost behaviour, cost estimation and cost prediction. The concept of cost driver analysis and its application to cost estimation and cost management will also be discussed. We will also describe how to estimate cost behaviour using managerial judgment, engineering methods and other quantitative techniques.

(b) diversified its product portfolio; extend target customers and meet the variable needs of customers.

D. New products offerings by a competitor may require adjustments to one or more components of the firm’s marketing mix

This paper will discuss and analyze the concepts of Activity- Based Costing (ABC) in the manufacturing industry. Specifically, the document will focus on General Motors (GM), and the innovation of one of their manufacturing facilities who used ABC to predict energy usage in the manufacturing of automobiles. The study yielded a successful ABC predictive energy model which provided a structure for competitive advantage for the corporation.

1. Identify the flaws associated with the current method of assigning shipping and warehousing costs to Sharp’s products.

The methodology I used to arrive at my budgeted numbers is concentrating on the activity-based budgeting, with the supplementary of incremental budgeting. Because of changing location, living environments and social identity, the living cost since work will be quite different from before. Instead of using the past budget categories in the college, I make a new list of activities which will mostly affect my life, ranging from moving, commuting to necessary living needs, and then assign specific value to each activity. For expense with valid source, such as rent, moving cost, internet, health insurance and car maintenance, I use information on the company’s website directly. For fuel expense which requires calculation, I figure out the daily

1.Detail and discuss alt the challenges you faced in projecting demand: meeting customer needs and wants, pricing, competitive actions and competitive response. How did your decisions impact your end performance (market share, income statement)?

Activity-based costing (ABC) methodology is an instrument designed to provide accountants and managers with valuable costing information that will allow them to make sound strategic decisions. It is used as a secondary methodology rather than a replacement for the company’s primarily costing system. The ABC methodology identifies activities in an organization and for each activity it assigns a cost. The cost reflects the actual resource consumption by each activity that has been identified.

· Product Development – the company seeks to develop new products and target these to its existing market segments.

The battle to sustain and increase corporate profitability grows ever more arduous in most sectors of the economy. Margins are caught in a pincer movement by both the steady improvement in competition, and the increasing awareness of customers. We need to grasp every

3. The marketing strategy of company is not so convincing because they can extend their product range with good