Management Cases Essay

33139 Words Sep 17th, 2014 133 Pages
Chapter 5

Activity-Based Costing and Customer Profitability Analysis


|5-1 |Blue Ridge Manufacturing (Activity-Based Costing for Marketing Channels) |
|5-2 |Columbo Soft-Serve Frozen Yogurt: Using Activity Based Costing To Assess Channel/Customer Profitability |
|5-3 |Wilson Electronics (A) |
|5-4 |Wilson Electronics (B) |
|5-5 |The Buckeye National Bank (ABC Costing in the Service Sector) |
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Discussion Questions:
1. What are product-cost subsidizations?
2. What are possible consequences of product-cost subsidizations?
3. List alternative approaches to assign costs in a gasoline service center.
4. Identify cost hierarchy level groups in classifying activities at the retail level of a gasoline service center and give at least one example each.
5. What are overheads activity-cost pools pertaining to selling gasoline in a retail gasoline service center and what is the activity level for each of the cost pools?
6. Identify the activity drivers for overheads activity-cost pools identified in this study and explain the reasons for the selection?
7. List examples of gasoline-dispensing facilities for a gasoline service center and identify whether each of the facilities is a common or a gasoline grade-specific asset.

5-2: “Activity-Based Benchmarking and Process Management—Managing the Case of Cardiac Surgery” by Bea Chiang, Management Accounting Quarterly (Fall 2002).

Through a study of resource consumption, hospitals can get a more accurate picture of how practices are linked to cost.

Discussion Questions: 1. Describe briefly hospital’s costing system. 2. Describe steps in activity-based benchmarking for medical-care processes.

5-3 “Using Activity Based Costing To Assess Channel/Customer Profitability” by DeWayne L. Searcy, PhD., CMA, CPA, Management Accounting Quarterly (Winter 2004).

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