Acc 561 Week 4 - 716 Words

Week 4: Costing Methods The week four individual paper addresses the implementation of Activity Based Costing (ABC) by Super Bakery, Inc., a virtual corporation founded by Franco Harris. Specifically, management strategies, the reasoning behind an ABC system, and the alternatives of a job order cost system or a process order cost system are assessed for this enterprise. Management Strategies A virtual corporation is described as a technology-linked network of companies, suppliers, and customers that are used by a company to outsource non-strategic business functions (Hershkovitz, 2012). The management of Super Bakery, Inc. identified that they could reduce their costs in permanent staff, fixed assets, and working capital (Kimmel,†¦show more content†¦This type of cost system further allows the activities to be specifically tracked in each of the company’s markets. In a virtual corporation environment, I believe the ABC method to be the most ideal for accurately tracking the costs involved in manufacturing, storing, delivery, and sales. For Super Bakery, Inc. the addition of multiple outsourced companies to their processes meets the criteria of products with manufacturing complexity that requires differing degrees of support services (Kimmel, Weygandt, Kieso, 2009, p. 876). As a result, I agree with Super Bakery Inc.’s decision to implement an ABC system. Options for Job Order Cost or Process Order Cost Systems I do not believe that either a job order or process order cost system would work for Super Bakery, Inc. Job order cost systems are based on one â€Å"work in process† account and a determination of total manufacturing costs at job completion. Because Super Bakery, Inc. is outsourcing many of the product production functions, they will not be able to obtain accurate costs for a particular job. As a result, they will again be forced to â€Å"average† the costs for multiple jobs which will result in an inaccurate overhead assessment. Process order cost systems are based on multiple work in process accounts and determine total manufacturing costs at the end of a time period. Multiple outsourcedShow MoreRelatedAcc 561- Week 41573 Words   |  7 PagesLarson Inc. must consider the alternative economic futures for their industry. In any market, economic conditions will change over time. The company must be able to ad apt and change with the economy to remain successful. The company needs to find solutions for the changing economy to keep increasing their revenue and decreasing their costs. The economy may go through a recession, expansion and peaks over their years in business. Larson, Inc. needs to analyze the difference scenarios and determineRead MoreAcc/561 - Week 4 Costing Methods Essay712 Words   |  3 PagesWeek 4: Costing Methods The week four individual paper addresses the implementation of Activity Based Costing (ABC) by Super Bakery, Inc., a virtual corporation founded by Franco Harris. Specifically, management strategies, the reasoning behind an ABC system, and the alternatives of a job order cost system or a process order cost system are assessed for this enterprise. Management Strategies A virtual corporation is described as a technology-linked network of companies, suppliers, and customersRead MoreACC 561 Week 1 WileyPlus Exercise 1-7, 1-8, and Quiz Study Guide1006 Words   |  5 Pagesï » ¿ACC 561 Week 1 WileyPlus Exercise 1-7, 1-8, and Quiz Study Guide www.paperscholar.com DIRECT LINK TO THIS STUDY GUIDE: http://www.paperscholar.com/acc-561-week-1-wileyplus-exercise-1-7-1-8-and-quiz-study-guide/ Instantly Download! Get Better Grades in Less Time! 100% Satisfaction Guarantee DESCRIPTION FOR THIS STUDY GUIDE: ACC 561 Week 1 WileyPlus Exercise 1-7, 1-8, and Quiz Study Guide This study guide includes solutions to Wiley plus exercises 1-7, 1-8, and week one practice quiz Read MoreEssay about Preparing a Master Budget686 Words   |  3 PagesWeek Five Individual Assignment Jonathan Scott ACC/561 7-A1) Preparing a Master Budget You are the new manager of the Betterbuy Electronics store in the Mall of America. Top management of Betterbuy Electronics is convinced that management training should include the active participation of store managers in the budgeting process. You have been asked to prepare a complete master budget for your store for June, July, and August. 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The _____ is also called the statement of financial position. a.Read MoreStr 581 Essay1954 Words   |  8 Pageswith the textbook used in this course. †¢ Review the Strategic Plan and Presentation Student Information. Course Materials All electronic materials are available on your student website. Week1 Mission, Vision, and Values Tasks †¢ Review the Week One Study Guide. †¢ Review the Capstone Examination Study Materials. Jul, 09 - Jul, 15 Objectives Mission, Vision, and Values 1.1 1.2 1.3 Identify major components of a strategic management process. Evaluate the organizations motivation strategyRead MoreImpact of Macro Economics Factors in Share Market19276 Words   |  78 Pagesand long interest rate. 1.1 MACRO ECONOMIC FACTORS DEFINITIONS To conduct this study, Five MacroEconomic factors were chosen and their definition and impact in Share Market as follows, 1. INFLATION 2. CALL MONEY RATE 3. DEPOSIT RATE 4. DOLLAR VALUE 5. FOREIGN INSTITUTIONAL INVESTORS INFLATION: The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index, Wholesale Price Index, and the Producer Price Index