Here is the synopsis of our sample research paper on Considering Activity-Based Costing. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 3 page paper discussing the differences that allocating costs in proportion with the processes that create them can cause in the quality of cost and profit information. Part 1 provides results with allocated and unallocated costs; Part 2 evaluates the results of the deli and fresh prepared foods departments of a large grocery store. Bibliography lists 2 sources.
Page Count:
3 pages (~225 words per page)
File: CC6_KSacctABCaafes.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
has made and sold widgets at the prices and quantity levels presented in Table 1. The total profit the company realizes is by lot size and reflects differences created
in setup costs including labor. "Old" figures are without cost allocation; "new" ones reflect greater accuracy. Table 1. Current Results with Allocated Costs Volume (000) Pieces
1000 500 150 1650 Old Cost/Piece $2.27 $3.16 $4.50 New Cost/Piece $ 1.89 $ 2.85 $ 8.06 Old Income/Piece $ 0.18
$ 0.39 $ 1.40 New Income/Piece $ 0.56 $ 0.70 ($2.16) Old Total Profit ($000) $181 $193 $209 $ 583 New
Total Profit ($000) $ 560 $ 350 ($324) $ 586 Source: (Tarr, n.d.)
Table 2 illustrates the appearance of total profit in the absence of activity-based costing. Without ABC, it appears that the 150-piece lot size is profitable and that the
500-piece lot provides less profit than the 150-size lot. Neither appearances is true, as illustrated in Table 1. Table 2. Without ABC Volume (000) Pieces 1000
500 150 Sell Price/Piece $2.450 $3.550 $5.900 Total Cost/Piece $2.269 $3.163 $4.501 Income/Piece $0.181 $0.387 $1.399 Total Profit ($000) $181
$193 $209 Source: (Tarr, n.d.) Part II Amy and Air Force Exchange Services
(AAFES) is the company that operates post exchange - PX - stores on military bases and wherever US military personnel are found. Larger stores offer both deli and fresh
...