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Essay / Research Paper Abstract
A 5 page paper applying the principles of activity-based costing (ABC) to Wilkerson Smokers, a two-location manufacturer of barbecue smokers. Similar to grills in that they do cook food and use an open fire, the grills are constructed to provide the greatest exposure to wood smoke possible, delivering at the same time an infusion of flavor not possible with standard barbecue grills. Using ABC, management learns that its most profitable model is the one they believed to be least profitable and had considered dropping. Includes 4 tables. Bibliography lists 1 source.
Page Count:
5 pages (~225 words per page)
File: CC6_KSacctABCWilk.rtf
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Unformatted sample text from the term paper:
Smokers is a two-location manufacturer of barbecue smokers. Similar to grills in that they do cook food and use an open fire, the grills are constructed to provide the
greatest exposure to wood smoke possible, delivering at the same time an infusion of flavor not possible with standard barbecue grills. Large and
awkward, the grills are not things of beauty, but they do sell well to fans of smoked barbecue. Even so, orders typically are small and are limited to well
under ten units. The retailers purchasing them generally have little storage space available, and those who have not stocked them before cannot know how their customers will receive them.
Manufacturing is not greatly involved, but Wilkersons management believes it can make no further improvements in the process. It needs to know
which of the grills is the most profitable. Building and Selling the Smokers One Wilkerson plant builds only two models of the grills
though it has plans for others in the future. One of the grills, the first model on which the company was built, still is made from a modified 35-gallon
steel drum. Wilkerson "slices" the drum in half and adds hinges and a grate to create the main body of the smoker. It then adds a firebox on
the side; creates a channel for smoke to travel through from the firebox to the main chamber; adds legs and some gauges and the grill is finished.
The other model is much more involved in its production. For Model B, Wilkerson creates the body of the grated portion, using steel plate thicker
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