This website uses cookies to ensure you have the best experience. Learn more

Greeting Inc Essay

839 words - 4 pages

Greetings
Inc.

Activity Based Costing
Analysis

Reasons for ABC
An activity-based costing system may be appropriate for Wall Décor, when traditional overhead allocation based job-order costing system provides product line cost bias. For example, Greetings. INC has added a new product line, Wall Décor. However, they have noticeably raised their overhead costs by increasing their cost drivers. In this circumstance, Wall Décor should amend its costing system so that overhead costs will be allocated in such a way that parallels to either frame or unframed prints instead of taking into consideration the same overhead for both products.

ABC Overhead Rates

Activity / Est. Overhead / ...view middle of the document...

26
Website Optimization- framed $4.13/15,000/61,920
Framing and Matting costs $2.10 30,000 63,000
Total Overhead $150,420
Number of Prints 15,000
Overhead per print $10.03
Total cost $39.03

Lambeau Field (wood frame with mat)

Activity Rate

Print Cost $20.00
Frame and Glass $6.00
Matting $4.00
Direct Labor ($0.2X10+$0.35X30) $12.50
Overhead $12.83
Total cost $55.33

Potential Implications

When the ABC system is applied to overhead allocated for unframed prints, it is established that the price is reduced. This occurs because unframed prints in working process utilize fewer resources from identified activity pools of the ABC system when weighed against framed prints. The potential implication of applying ABC system in to the retail chain is that there will not be product cost bias and will deliver more accurate pricing and a more accurate evaluation in relation to the profitability of the products.

Overhead Cost Related to Website Optimization

In order to show the amount of time spent on web optimization by IT between framed and unframed prints, total cost of web optimization activity has been split between unframed and framed classifications. Time of IT was distributed to the cost of unframed prints and framed prints. After distribution is identified, it is simple to see how much of the IT resources are being consumed by framed and matted prints, ensued by more truthful pricing.

Splitting Cost

There was a disparity of overhead cost between different framed products. To address this, the framed prints cost driver were divided into steel-framed prints and wood-framed prints with matting. The best option for Greetings Inc. was to...

Other Papers Like Greeting Inc

Harvard Business School Essay

4536 words - 19 pages , giftbooks and college study guides. Friendly Cards, Inc. In 1978 Wendy Beaumont founded Beaumont Greeting Card Co. in New York City with $15,000. Shortly thereafter she acquired the bankrupt Lithograph Publishing Co. of Reading, Connecticut and moved all operations to the new plant. A year later the renamed firm, Friendly Cards, Inc., went public through a stock offering at $3 per share. In the years that followed, Friendly expanded rapidly

Fear and Cowardice in Shakespeare's Macbeth

1279 words - 6 pages greeting, Macbeth is lulled into a "fantastical" state of mind (I.iii.139). He ponders regicide, which "[s]hakes [his] single state of man that function / Is smother'd in surmise" (I.iii.140-41). During the events heralding Duncan's murder, Macbeth undergoes five changes of mind before deciding that "[they] shall proceed no further in [that] business" (I.vii.31). The hesitation to kill Duncan is the first symptom of Macbeth's fearful confusion. What

Java Programming Language Sl-275

6064 words - 25 pages • Has its literal enclosed in double quotes (" ") "The quick brown fox jumps over the lazy dog." • Can be used as follows: String greeting = "Good Morning !! \n"; String err_msg = "Record Not Found !" Java Programming Language Copyright 1999 Sun Microsystems, Inc. All Rights Reserved. Enterprise Services September 1999, Revision C.1 Module 2, slide 14 of 33 Sun Educational Services Integral – byte, short, int, and long • Uses

Res/110 Research Assignment

854 words - 4 pages extraordinary stature, certain people are attracted to the Savannah’s personality and the ability to adapt well with various types of animals, including other cats. They act as a member of the family or a roommate to a single person, for example by sleeping under the covers, greeting their owners at the door, playing games, and needing to be loved. Savannah owners will say that these cats have a unique sense of confidence and how they have the

Disney Finance Case

994 words - 4 pages Executive Summary Walt Disney Productions Inc. (Disney) is the target of a takeover attempt by Saul Steinberg. Over the course of several months, Disney management has resisted the takeover in several ways including the acquisition of Arvida Corporation in a "for stock" deal and the pending acquisition of Gibson Greeting Inc. (Gibson). Steinberg has countered these moves with a public tender offer of $67.50 per share if Disney acquires Gibson

Marketing Plan For Hallmark New Product

6824 words - 28 pages & Products Review Hallmark is no doubt the market leader of greeting cards manufactures in the U.S. and dominates more than 50% of the market ("Hallmark annual sales," 2006). Market strategies are successfully applied in the U.S. Hallmark refers similar strategies in Hong Kong, expecting to achieve high share in local market.  Brief Ideas about company. Hallmark Cards Inc., the largest greeting cards manufacturer in the United States, was

Cloud Services

1552 words - 7 pages Amazon’s and Google’s Cloud Services Compared Zakaria Abuzeid Machemia McGregor Bernard Murrell Lisa Thomas Casaundra Woolridge Keller School Of Management Managerial Applications of Information Technology Instructor: Marlyn Kingsley November 30, 2011 Overview “When you care enough to send the very best” is the first thing that comes to mind when you think of the Hallmark brand. Hallmark Cards, Inc. has remained the Goliath of

International Communications

1416 words - 6 pages receive different economic and social rewards. The foreign groups are as followed: top professionals with international contracts, middle range professionals and low paid, semi-skilled to unskilled workers. Social behavior in the United Arab Emirates starts with the Islamic greeting Al-Salam Alaykom. Men touch nose to nose when greeting while as women kiss each other on the cheek several times. Asking about the family and their health is a

Annual Report

1187 words - 5 pages management services. The Retail Pharmacy segment sells prescription drugs and a wide assortment of general merchandise, including over-the –counter drugs, beauty products and cosmetics, photo finishing, seasonal merchandise, greeting cards and convenience foods. The Corporate segment provides management and administrative services to support the company. 1. Identify and explain the main sections of the annual report. The main sections of CVS

Cultural Taboos

2206 words - 9 pages Axtell, Roger E. Gestures: The DO’s and TABOOS of Body Language Around the World. Jon Wiley & Sons, Inc, 1998 -- Rev. and expanded edition. Over the past decade the author has been presenting seminars, speeches and workshops around the United States on the subject of international behavior. This book is the result of accumulation of more than ten years of research on the subject and it includes research on his travels to England, Germany

National Bookstore

1929 words - 8 pages many years. In the 1950's, Mrs. Ramos thought of producing a line of greeting cards and postcards using Philippine views and artwork. It was a brilliant move for her to earn more by creating a distinct design and at the same time to promote Filipino customs and traditions to the rest of the world. Later on, they acquired the Philippine franchise for Hallmark cards. It was also at this time that the couple began a publishing program through the

Related Essays

Case I Greeting Inc.: Job Order Costing

997 words - 4 pages 1. Define and explain the meaning of a predetermined manufacturing overhead rate that is applied in a job-order costing system. The predetermined overhead rate is used for estimating the manufacturing overhead cost because companies cannot assign the actual overhead cost to specific job. From the case, Wall Décor uses a traditional job-order costing system. The actual costs of direct materials and direct labor are charged to its specific jobs

Personality Overview Essay

1575 words - 7 pages of 75-100 words (not including your signature, greeting, or reference). | | | |Discussion Questions |Respond to weekly discussion questions in 200-300 words (not counting signature, greeting, or |Day 2 & 4 |2 | | |reference) per discussion question. | | | |Learning Team

Trademark Inc. 03 05 Essay

976 words - 4 pages Re: Case 03-05, Accounting Issues Background Trademark, Inc., a public and growing global corporation, creates, assembles, and disburses their products through four main divisions of their corporation: Greeting Cards and Stationery, Calendars, Party Goods, and Specialty Gifts. Their core business comes from their customers in drug stores and supermarket chains. In the early to mid 1990’s, Trademark saw significant growth in response to their

Vacations In Paradise Essay

1047 words - 5 pages employee a five-digit alphanumeric code that is linked digitally to every phone call, survey and purchase made. Our organization emails a post-purchase survey to the customer as part of the rental/purchase agreement. Each call, a greeting alerts the customer to be aware that the conversation may be recorded or monitored for quality of service and a post-call survey. Each call center employee will have a minimum three calls followed/recorded per