User Account

All Pages

Explain important information about accounting

Assignment Help Marketing Management
Reference no: EM1325012

Explain Important information about Accounting-Activity based costing and Traditional costing.

A business performs a variety of activities related to information systems and e-commerce consulting. The business bills $125 per hour for services performed. They are in a very tight local labor market and are having trouble finding quality help for their overworked staff of professionals. The cost per hour for professional staff time is $45. See information below.

Billable hours to clients for the year totaled $5,000. Information systems was $3,100 and e-commerce consulting was $1,900.

Administrative cost of $342,000 was (and continues to be) allocated to both services based on billable hours. These costs consist of $180,000 staff support, $136,400 in-house computing, and $25,600 in miscellaneous office charges.

A recent analysis of staff support costs found a correlation with the number of clients served. In-house computing and miscellaneous office charges varied directly with the number of computer hours logged and number of client transactions, respectively. A tabulation revealed the following data:

Information Systems E-commerce Total

No. of Clients 200 50 250
No. of computer hrs 2600 1800 4400
No. of client transactions 400 600 1000

1. Activity-based costing is said to result in improved costing accuracy when compared with traditional costing procedures. Explain how this improved accuracy can be attained.

2. Assume that the firm uses traditional costing procedures, allocating total costs on the basis of billable hours. Determine the profitability of the firm's information systems and e-commerce activities. Express the answer in both dollars and as a percentage of activity revenue.

3. Repeat question number 2 using activity based costing

4. One of the firm's partners doesn't care where his professionals spend their time because he claims, "many clients have come to expect both services and we need both to stay in business. Also, information systems and e-commerce professionals are paid the same hourly rate." Shouldn't his attitude change and why?

5. Is an aggressive expansion of either service currently desirable? Why?

Reference no: EM1325012

Questions Cloud

How mrp applied to hospital surgery : How might MRP be applied to hospital surgery, university classes, restaurants, hotel
Emotions-perception-decision making in the workplace : Interpret how emotion and culture influenced the process for decision. Analyze the role of perception, attention, memory and language played.
Principles of good metrics program for it : Description of Information Systems - Provide a specific example of how a company illustrates the three key principles of good metrics program for IT.
Organizational social responsibility : Should an organization always adopt a broad stance on social responsibility? Describe how you agree or disagree with this question and why you've this perspective.
Explain important information about accounting : Explain Important information about Accounting-Activity based costing and Traditional costing and Assume that the firm uses traditional costing procedures
What is the purpose of a technology road map : What is the purpose of a technology road map and What are the two main objectives when creating a road map for an organization?
Ethics and supply management : Distinguish between ethical and legal principles and practices and describe your concept of ethical behavior as it relates to purchasing and supply management function.
Science-religion and knowledge theory application : What are key arguments offered by proponents of the scientific method and the critiques of these arguments?
Hcit in terms of software development : What does the future look like for HCIT in terms of software development

Reviews

Write a Review

Marketing Management Questions & Answers

  Integrated marketing communication

Developing an IMC plan of Amazon that aims to create awareness and knowledge amongst Singaporean  consumers of the ethics involved in buying clothing made from Bangladeshi factories  .

  Multiple choice questions on e-commerce

The assignment in Computer Science or Information Technology is about multiple choice questions, particularly in e-commerce. Questions such as types of e-commerce websites, commercial websites, disintermediation, Platform for Piracy, the data that ca..

  Balanced scorecard for red lobster

The assignment in marketing is about Red Lobster, which is one US and Canada's most loved seafood restaurant. It has hundreds of outlets in US and Canada and it now wants to expand further. The approach adopted by Red Lobster has been discussed in fu..

  Marketing plan - marketing audit, swot and smart report

The assignment in marketing is about preparing a marketing plan. As part of marketing plan, the SWOT analysis, assessing the competitive position, identifying critical competitive issues, marketing objectives, strategy and actions have been suggested..

  Marketing plan

Marketing deals with preparing a marketing plan for either an existing product or a new product. Various aspects about launching a new product into the market are discussed ranging from the industry the product belongs to, goals and vision of the com..

  Yamato corporation analysis - harvard case study

Please refer to the PDF for the Case Study and questions.The case study from Harvard Business School is about Yamato Corporation, a parcel delivery company which provides door to door delivery in Japan.

  Marketing plan - create a new product

The assignment in marketing is about competitive analysis for a new product namely "heated insoles". These heated insoles can be put in shoes and they can protect the wearer's feet by keeping them warm during cold winters.

  Report on digital marketing strategy for a website

Promotion strategies of  the one's own developed website

  Integrated marketing campaign of mccafe

Integrated marketing campaign for McDonald's McCafe. McCafe has been launched in Canada. This is a case study which involves the use of digital marketing and social media marketing apart from regular marketing such as TV and radio. All these more are..

  New product development at adidas

In this paper, the researcher also determines the different kind of practices used by Adidas to manufacture shoes for its customers.

  Managing services in competitive environment

Services can be defined as separately identifiable, intangible activities which provide want-satisfaction when marketed to household consumers and/or industrial users.

  Prepare a marketing plan

A marketing plan is an essential tool for any marketer, providing direction for a brand, product or organization. A marketing plan describes the marketing environment, marketing objectives and marketing strategies.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd