Preview

ABC-ABM at Hewlett-Packard Europe for customer support. Isabelle Lacombe & Pierre-Laurent Bescos

Powerful Essays
Open Document
Open Document
1067 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
ABC-ABM at Hewlett-Packard Europe for customer support. Isabelle Lacombe & Pierre-Laurent Bescos
TABLE OF CONTENTSQuestion 1a ……………………………………………………………………………………………………………………….3b ……………………………………………………………………………………………………………………….3c ……………………………………………………………………………………………………………………....4Question 2 …………………………………………………………………………………………………………………………………5Question 3 …………………………………………………………………………………………………………………………………6Question 4 …………………………………………………………………………………………………………………………………6References …………………………………………………………………………………………………………………………………7QUESTION 1a.Calculate the cost of the activities for France.

Table 1.4 Calculation of the ABC results for Q3 1998; cost per activity in € thousandsActivity FranceGermanyItalyUKTotalCall receipt1.4502.2509001.5006.100Call qualification1.6503.0008002.0007.450Dispatching (people and parts)1.2501.0009509754.175Logistics (parts handling)3.5004.9502.6003.90014.950Freight2.5003.1501.2003.0009.850POP (Customer Assists (Parts/Unit sent))1.5501.3508002.1005.800On-site HP CE10.07517.1005.6009.00041.775On-site Temps7759006006002.875On-site 3rd party CE1.6509006001.0504.200Courier6001.3505003002.750CE Assist1.5502.4751.0001.2006.225Escalation1.5502.4751.1001.5006.625Rops2.4004.0501.8002.10010.350Total30.50044.95018.45029.225123.125b.Calculate the unit cost of the delivery process for France, and the unit cost of the delivery process 'HP On-Site' by activities for France.

Table 1.9 Unit cost of repair per delivery process for France, Q3 1998 (in €)Activity Remote solutionCourier Assist (Exchange)POP (Parts/Unit Sent)On-site HP CEOn-site TempsOn-site subcontractInstallationTotal Total cost in € (a)1.6411.8632.30817.3573.1122.8761.34430.500Number of repairs per process (b)24.0005.0003.00022.0009.00012.0008.00083.000Unit cost per repair in € = (a)/(b)*100068373769789346240168367Table 1.11 Cost per repair and per activity (Q3 1998): cost by activities for the delivery process 'HP On-site' (in €)Activity FranceGermanyItalyUKCall receipt17,57,56,79,1Call qualification22,050,624,824,7Dispatching (people and parts)31,121,515,119,6Logistics (parts


References: REFERENCESMeulen van der, H. & Koomen, C. (2010) Lecture 2, chapter 4&5 Held at Nyenrode Business Universiteit, 20 January 2010. Lacombe, I. & Bescos, P.L. (1998) ABC-ABM at Hewlett-Packard Europe for customer support. Horngren, C.T. Datar, S.M. Forster, G. Rajan, M. & Ittner, C. (2009) Cost Accounting, a managerial emphasis, thirtheenth edition. USA, Pearson International Edition.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    RSM222 Midterm
    • 1583 Words
    • 9 Pages

    RSM222 Midterm

    2. Abel Company uses activity-based costing. The company has two products: A and B. The annual production and sales of Product A is 200 units and of Product B is 300 units. Selling price for A is $160/unit and B is $100/unit. There are two activity cost pools, with estimated total costs and expected…

    • 1583 Words
    • 9 Pages
    Good Essays
    Read More
  • Better Essays

    Waltham Motors Case
    • 863 Words
    • 4 Pages

    Waltham Motors Case

    2. Using budget data, what was the total expected cost per unit if all manufacturing and…

    • 863 Words
    • 4 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Qm 240 Week 4 Checkpoint
    • 505 Words
    • 3 Pages

    Qm 240 Week 4 Checkpoint

    Assignment statement A company RYAN-MAYSSA has decided to implement a computer centre composed of a file server, 12 client computers, a printer and a scanner. The computer centre is used to run MICROSOFT OFFICE on client server architecture through the Microsoft Windows for client/server. In addition, an antivirus software for client/sever is also acquired to protect data in the centre. In order to guarantee the efficient use of the system, the company made a contract with a well known training centre to train employees, and contracts also IT support for its software. The below table provides the cost for purchased items. Type of cost Network infrastructure Description and amount Network exchange and Modem=250 KD Cable for network=300 KD Network installation = 300 KD Hardware File server= 750 KD 12 personal computers= 12*350 KD= 4200 KD Printer= 150 KD Scanner= 100 KD…

    • 505 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    case study
    • 1430 Words
    • 6 Pages

    case study

    Activity one; process cartons in and out of the facility rate= (90% *2,400,000+35,000,000)/80,000=464.5 $/per carton…

    • 1430 Words
    • 6 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    ACC 206 Week 5 Final Paper Cost Accounting
    • 673 Words
    • 3 Pages

    ACC 206 Week 5 Final Paper Cost Accounting

    Principles of Accounting II Cost Accounting Accounting is the accumulation and aggregation of info for decision makers including administrators, traders, authorities, loan providers, as well as the general public. Accounting systems impact behavior and administration and have effects across divisions, companies, and even nations. This report will provide the reader a knowledge regarding cost accounting. This report will talk about: Why is cost accounting so essential to the achievement of the company; what are the different ways of cost accounting and how are they utilized; how does an operating budget work in order to control a firms administration; what are the factors of a financial budget; how are financial budgets developed; what is variance analysis and the way its utilized. Cost accounting can be defined as the procedure of gathering, computing, assessing, interpreting as well as reporting cost info which is both helpful and related to the internal and external stakeholders of a business. Among the many advantages of cost accounting is that it converts data into info, knowledge and wisdom regarding a business entitys functions which is helpful for: gauging efficiency, decreasing or controlling expenses, deciding the charges or rates for services and goods, determining to approve, change or stop a plan or activity. One more advantage is that info on the costs programs as well as activities can be used as a foundation in order to approximate future expenses in organizing as well as analyzing budget requests. As soon as budgets are authorized as well as executed, cost info serves as a helpful comment on efficiency. In addition to that, costs might be compared to known or supposed advantages in order to identify value-added and non-value added actions.…

    • 673 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Syllabus1Acct372ja
    • 1791 Words
    • 10 Pages

    Syllabus1Acct372ja

    1. Cost Accounting: Foundations and Evolutions: Kinney, and Raiborn, Cengage Publishing (Thomson South Western) 8th Ed.…

    • 1791 Words
    • 10 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Broadening Your Prospective
    • 389 Words
    • 2 Pages

    Broadening Your Prospective

    The total charged to an in-house manufacturing department would be $1,046,800. This dollar amount is determined by multiplying the overhead rates of each activity to the amount consumed for that activity and added together for a total. (1,800*70= 126,000), (280*940=263,200) (10*40,000=400,000), (2,800*92=257,600)…

    • 389 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Learning Guide 2013 Lbc202
    • 22167 Words
    • 89 Pages

    Learning Guide 2013 Lbc202

    There is a Student Guide to accompany “Cost Accounting: a managerial emphasis” –( the above…

    • 22167 Words
    • 89 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Wilkerson Company Case Summary
    • 585 Words
    • 3 Pages

    Wilkerson Company Case Summary

    6. Repeat the ABC cost and profitability analysis in (5) by estimating the various activity cost driver rates using the March 2000 manufacturing overhead amount (because the heavy demand was handled without any production delays or use of overtime) and the “heavy demand” capacity information provided in the very last sentence of the case in page 3. Which of these, in your opinion, more accurately captures the consumption of factory resources by Wilkerson’s products?…

    • 585 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Chocloate case study
    • 6328 Words
    • 41 Pages

    Chocloate case study

    Horngren, C. T., S. M. Datar, G. Foster, M. Rajan, and C. Ittner. 2009. Cost Accounting: A Managerial…

    • 6328 Words
    • 41 Pages
    Good Essays
    Read More
  • Good Essays

    Mba 503 Assignment 3.1
    • 675 Words
    • 3 Pages

    Mba 503 Assignment 3.1

    Morello Sporting Goods Corporation makes two types of racquets, tennis and badminton. The company uses the same facility to make both products even though the processes are quiet different. The company has recently converted its cost accounting system to activity-based costing. The following are the cost data that June Searight, the cost, accountant, prepared for the third quarter of 2011 (during which Morello made 70,000 tennis racquets and 30,000 badminton racquets).…

    • 675 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Managerial MIdterm
    • 638 Words
    • 3 Pages

    Managerial MIdterm

    a. Compute the unit product costs under (i) absorption costing, and (ii) variable costing. (2 marks)…

    • 638 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Precision Worldwide
    • 300 Words
    • 2 Pages

    Precision Worldwide

    APPENDIX: Table A 100 Plastic Rings Material Cost Direct Labor Overhead Departmental Administrative Total Cost Selling Price $131.00 $65.50 $279.65 $1,350 $393.00 $196.50 $1,107.90 $1,350 $17.65 $65.50 100 Steel Rings $321.90 $196.50…

    • 300 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Computron Case
    • 2296 Words
    • 10 Pages

    Computron Case

    The cost of a 1000X computer for the European market usually consists of the cost to manufacture ($768’000), the overheads, a markup of 33 1/3% ($256’000) that includes the profit, research and development and selling expenses; in addition to these components, there are transportation and installation costs ($67’200) and finally the import duty ($153’600). Computron Inc. has previously assembled and manufactured its products in the US and shipped ready goods to Europe, thus having to raise the original US price in order to cover the expenses of the last component of the price, the import duty. Given that the company has made a strategic decision to build a factory in Frankfurt that would cover the assembling and manufacturing services for the European market, that consists of 15 countries, and given that the opening of this newly constructed facility is the 15th of September 2006; it is valid to assume that the manufacturing and assembly of the 1000X computer for Köning & Cie, AG, if the order is made, would take place at the local facility in Germany, rather than in the US. This factor eliminates the expenses related to import duty ($ 153’600) as well as significantly reduces the transportation costs. Moreover, knowing that the company’s policy has never permitted reducing the markup percentage in the European market and that Köning’s vice president in charge of purchasing is not in favor of purchasing any equipment that has a price of more than 20% higher than the lowest bid; subtracting the import duty from the original price of ($1’244’800) would b the first step in reducing the initial price to $1’091’200. The value is 4.1% higher then $1’046’400, what would be the exact ‘maximum price’ mentioned by Köning’s official. If we do not take into consideration the potential for cost reduction from reduced transportation costs in order to make up for the loss in ‘before tax…

    • 2296 Words
    • 10 Pages
    Better Essays
    Read More

Related Topics