Bus 630 Managerial Accounting Week 5 Essay

1068 Words Mar 12th, 2013 5 Pages
Assignment 5 Week 5 BUS630 Managerial Accounting Christophe Engleton Instructor Anthony Perez 01/07/13
Feded Strategy is stated as, “ FedEx Services provides a convenient single point of access for many customer support functions, such as marketing, sales and automation”(Fedex, 2005).

Form 10-K which states, “ We are pursuing a number of initiatives to continue to enhance the FedEx customer experience, including improving the capabilities of our sales professionals. For instance, through our FedEx OneCall program, we assign a single customer service agent to handle virtually all issues of a customer’s account”(Fedex, 2005). Examples of operational excellence by Fedex in the article they state, “FedEx
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Provide two examples of common costs that are not traceable to the four business segments. FedEx's four main business segments are FedEx Express, FedEx Ground, FedEx
Freight and FedEx Kinko's(FedEx, 2005). A traceable fixed cost of a segment only exists because of the existence of the segment itself.

One traceable fixed cost for FedEx Express would include the cost to for fuel, as stated in the document, “ FedEx Express has a dynamic fuel surcharge for all U.S. domestic and U.S. outbound shipments and for shipments originating internationally, where legally and contractually possible. The surcharge percentage is subject to monthly adjustment based on the spot price for jet fuel. For example, the fuel surcharge for June 2005 was based on the spot price for jet fuel published for April 2005. Changes to the FedEx Express fuel surcharge, when calculated according to the spot price for jet fuel and FedEx Express trigger points, are applied effective from the first Monday of the month. These trigger points may change from time to time, but information on the fuel surcharge for each month is available at fedex.com approximately two weeks before the surcharge is applicable” (FedEx, 2005). Another example of traceable fixed cost for FedEx Express would be the cost involved in owning 557 airplanes(Fedex, 2005).

Traceable costs for FedEx Ground would include the cost to operate their offices and the 28

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