Allied Office Product Essay

1412 words - 6 pages

Allied Office Products
Introduction
Allied Office Products is a large corporation that builds its reputation on its annual sales of $900 million in business forms and specialty in paper products. Its paper products vary from envelopes to greeting cards and writing papers.

Allied has incorporated a new program called Total Forms Controls (TFC) for its clients enabling Allied to separate this business form division to handle client accounts. TFC provides services of warehousing and distribution, inventory control and forms usage reporting. Further more Allied offers several other services such as “pick-pack and desk top delivery” (Govindarajan &Anthony 2007, p.348) to enhance their ...view middle of the document...

41

2) Using your new costing system, calculate distribution services costs for “customer A” and “customer B”
Customer A Customer B

Average inventory 350 cartons@ $4.43=1550.5 700cartons@$4.43=3101

Requisitions 364@$5.81=2114.84 790@$5.81=4589.9

Number of lines 910@$0.98=891.8 2500@$0.98=2450

“Pick-pack” 910@$1.05= 955.5 2500@$1.05=2625

Annual freight cost $ 2,250 $ 7,500

Extra charging after 9 months nil $7000@1.5%*3=315

Desk top deliveries nil 26 per year@$29.41=764.66

Data entry 910@$0.79=718.9 2500@$0.79=1975

Total $8,483 $23321

Here is an example how to calculate the cost using the ABC method for customer B, there are 700 cartons’ inventories, 790 requisitions and 2,500 line all lines with ‘pick-pack’ activity. Besides, customer needs 26 times desk top deliveries which cost $764.66 more. In addition, for customer B there is $7,000’s inventory stored over 9 months, the extra charging after 9 months should be $315. It added up to $23,320.56 for customer B.

Costs for Customer A & B:

Customer A:

$1500+$2250=$3750

Customer B:

$50,000+$7500=$57,500

3) What inference do you draw about the profitability of these 2 customers?

Currently customer A & B both face the service charges of 32.2% of its total product costs $ 50,000 that is $16,100.

Customer A: $16,100 – 8483 = $7617

Customer B: $23321 – 16,100 =$7221

As shown here, A was over charged $ 7,617 while B was under charged $ 7,221
From another viewpoint:

  old method ABC method

  customer A customer B customer A customer B
sales $79,320 $79,320 $79,320 $79,320

products cost $50,000 $50,000 $50,000 $50,000

services fees $16,100 $16,100 $8,483 $23,321

gross profit $13,220 $13,220 ...

Other Papers Like Allied Office Product

Operational Management Report

1963 words - 8 pages ) Mr. Fida Hussain (M. D. Lahore Unit) Mr. Aamir Hussain (Group Director) Mr. Anwaar Hussain (Director Marketing & Sales) Mr. Amir Sohail (Director Marketing & Sales) Mr. Adnan Hussain (Director Operations) Mr. Noman Hussain (Director Business Development) PLANT LOCATIONS: Karachi (Two Plants) Hyderabad Islamabad Lahore (Two Plants) Faisalabad KARACHI/CORPORATE OFFICE: Golden Harvest Foods (Pvt.) Ltd. Plot No. 33

How Advertising Was Started in India?

850 words - 4 pages employed here as a designer and illustrator. | | | |Lever, a multinational consumer product company had also opened its Indian office that had its own in-house advertising | |department. This later turned into an independent agency called LINTAS (Lever's International Advertising Service

Computer Science: The Underlying Processes

1572 words - 7 pages The list of advances made in computer science is endless and involves just about everything imaginable. In many ways, the advances that have happened over the last few decades have laid the foundation for a much more profound change in the years ahead. "Today there are about a billion PC's in use around the world". (Network World, 2008) Computers are available everywhere, in the office and the home, in our cars, in stores and restaurants. We use

Books

2794 words - 12 pages Chapter 1 The revolution is just beginning E-Commerce: Use of Internet and web to transact business securely and privately. Commerce * Commerce is the exchange of items of value between persons or companies * Any exchange of money for a product, service or information is considered a transaction of commerce * Commerce is the branch of business. It is concerned with the exchange

The Manhattan Project

1577 words - 7 pages to 20,000 tons of trinitrotoluene, TNT (Gerdes 144). The plutonium and other high explosives were put together to form an implosion bomb (Bondi 494). President Franklin D. Roosevelt died on April 12, 1945, and Vice President Harry S. Truman took office (Uschan 54). When Truman took office, he did not know anything about the Manhattan Project, which showed the top secrecy of it. He finally found out about the project one week after in office

Philippine Banking

1661 words - 7 pages Philippines at that time, His Excellency Antonio de Urbiztondo y Eguia.  Gov. de Urbiztondo was a marquis of Solana in Spain who was named governor-general of the Philippines in 1850. His term of office was characterized by many administrative innovations, so it was not surprising that six years later, he would be called back to Madrid to take on a bigger role as Spain's new minister of war.  As the highest-ranking government official in the

Business Management

3668 words - 15 pages , such as product design and specification, advertising and other forms of promotion, pricing policy, selling, channels of distribution and physical distribution to achieve this end. These customer-impinging resources are often summarized under four headings and referred to as the four Ps of the marketing mix (price, promotion, place and product). The art or science of marketing management is concerned with making decisions/policies with respect to

Term Paper

5980 words - 24 pages and also product departmentalization. Moreover, we show the chain of command of Berger and show the structure. Then we make the leading process of Berger Paints. Under leading process we make power and leadership, traits approach, leaders behavior, decision making style and transformational leadership of Berger Paints. At the end we match our total production with the amount of targeted amount of products that we set at the beginning of the year

Mis In Tcs Pakistan

5061 words - 21 pages material of Rawalpindi and Peshawar arrives through Royal cargo service around 04:15. The Peshawar runner will take its material from airport for onward processing. The process of de-bagging starts at Islamabad office where ground couriers are released for onward feeding of material to allied branches. The process of de-bagging is as follows: 13.1. Security. Here security officer is responsible to ensure that seal of parcel is not damaged. He then

information

1959 words - 8 pages , Dingman and his brother, Darin, launched a line of low-priced golf clubs called Techniques, and later expanded into upscale custom putters in the $300 range. They bought the Tiger Shark golf club brand in 2000 from Japanese-owned Allied Holdings Inc. in California for $350,000, and for years marketed the clubs in the U.S., Asia and Europe. Dean Dingman, 47, said he bought the SuperStroke brand, then based in Wisconsin and advertising on

Universal Brother Hood Is Better Than Patriotism

2630 words - 11 pages | 1980 | 2,860 | 1985 | 5,240 | 1990 | 10,310 | 1995 | 22,960 | 2000 | 52,700 | Tripura's gross state domestic product for 2004 is estimated at $2.1 billion in current prices. Agriculture and allied activities is the mainstay of the people of Tripura and provides employment to about 64% of the population. There is a preponderance of food crop cultivation over cash crop cultivation in Tripura. At present about 62% of the net sown area is

Related Essays

Allied Off Essay

831 words - 4 pages The following is the case study completed in regards to Allied Office Products. Currently Allied Office Products charges customers a flat fee on product cost. This case study was performed in order to see if Allied Office Products should switch and implement the Sales Based Pricing System. “ABC” based service costs for the TFC business were calculated and Total Cost/Expense were found to be $1,550,000 Storage, $1,801,000 Requisition

Allied Office Products Essay

1412 words - 6 pages Allied Office Products Introduction Allied Office Products is a large corporation that builds its reputation on its annual sales of $900 million in business forms and specialty in paper products. Its paper products vary from envelopes to greeting cards and writing papers. Allied has incorporated a new program called Total Forms Controls (TFC) for its clients enabling Allied to separate this business form division to handle client accounts

Abl Hr Policy Essay

4175 words - 17 pages types of office equipment. Job Specification in regular Staffing Here, you can have the glance of the job specification that issued by Allied bank while recruiting the regular staff: Minimum Qualification: Masters degree within required discipline Work experience: not required but preferably 1 year. Personality: smart, physically fit and medically fit for the job. Abilities: Good command on English language with Computer knowledge. Entry

Aramit Company Essay

924 words - 4 pages in 1963. Aramit has been playing its role and fulfilling its responsibilities as one of the largest national industries group which is growing constantly in the field of building materials by providing Aramit roofing sheets and allied products, ISO-9002 certified camel brand aramit cement and world class extruded and anodized Aramit Aluminum profiles, stainless steel pipes and consumer product like footwear. Today the success history of Aramit