Korea Auto Insurance Company

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Headquaters' Overhead Cost Allocation at Korea Auto Insurance Co. Inc. | | | |Korea Auto Insurance Co. Inc. | | | | | | | |For periods 2007 thru 2008 | | | | |Question 1 - Net Income, revenue, direct, and indirect costs using current method | |  |  |Whole Company |% of Revenue |Teajon Branch |% of Revenue | |  | |Team |Activity |Cost Drivers | |IT |Branch PC Maintenance |# of PC Units | | |Headquarters IT system |# of Branches | | |Support | | | |Branch IT system support |# of PC Units | | |Employee Training |# of employees | |OS Team |Training of sales people |# of sales people | | |Operating performance |# of accidents | | |evaluation and reporting | | | |Handling traffic accident |# of accidents | | |cases | | |Investment Team |Equity investment |Revenues amount | | |Debt Investment |Revenues amount | | |Investment performance |Revenues amount | | |evaluation and reporting | | |Marketing |Advertisement |# of branches | | |New product/ new channel |  | | |development | | |GA Team |Payroll administration |# of employees | | |Performance evaluation |# of employees | | |Education and Training |# of employees | | |Headquarters building |# of branches | | |maintenance | | | |Branch Building Maintenance |# of employees |

|Exhibit 4 Potential Cost Drivers | | | | |Cost Driver |Whole Company |Teajon Branch | |  |2007 |2008 |2007 |2008 | |Number of Accidents|512 |531 |54 |31 | |Revenues Amount |$203,500,000 |$227,800,000 |$23,600,000 |$33,200,000 | |Number of Sales |412 |508 |27 |35 | |People | | | | | |Number of Branches |10 |10 |1 |1 | |Number of Employees|1,098 |1,203 |82 |45 | |Number of PC Units |522...
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