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You are in a meeting with some of your company's more junior managers. After the discussion about the special services and custom product and delivery expectations of some customers and "going the extra mile" for the customer one manager comments we need to do that because the customer is always right. You are in the business of providing products to home builders and are getting many requests for non-standard paint colors. You are also seeing many special requests for job site deliveries at difficult to reach locations and very narrow delivery time windows causing much extra wait time for your trucks and drivers.
Question 1. What are the key concerns related to excessive focus on nonfinancial customer metrics such as customer loyalty and satisfaction?
Question 2. How might you use Activity Based Pricing to address your particular customer challenges?
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
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Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
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Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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