Why is r and v fashions existing pricing system inadequate

Assignment Help Case Study
Reference no: EM131474037

Case study: R&V Fashion

Required:

Write a report written from the point of view of the management accountant directed to the general manager in which you answer the following questions:

1. Why is R&V Fashion's existing pricing system inadequate for its current operating environment?

2. Develop an activity-based cost system for R&V fashion based on year 2016 data. Calculate the activity cost driver rate for each R&V Fashion activity in 2016. The activities are as follows:
Ship cartons; process cartons (we define two different activities, process cartons and ship cartons because they handle different quantities of the activity driver, as 75 000 cartons are shipped via freight and 5 000 cartons are shipped via drop-ship delivery); drop-ship delivery; set-up manual order; enter items ordered (individual order lines in an order); validate EDI order.

3. Using your answers to question 2, calculate the profitability of Customer A and Customer B.

4. What explains any difference in profitability between the two customers?

5. Explain:
a. What are the limitation, if any, to the estimates of the profitability of the two customers?
b. What are the advantages and the limitations of Activity-based costing?

Attachment:- Case.rar

Verified Expert

This is a 800 words assignment that talks about the Case study of R&V Fashion. R&V Fashion is a distributor of premium men’s and women’s fashion labels to department stores and specialty boutiques throughout Australia and New Zealand. It works closely with suppliers and clients aiming to provide clients with uncomplicated delivery of sought after brands. This offering, coupled with personalized service differentiates the company in a highly competitive market.

Reference no: EM131474037

Questions Cloud

Candadian post office create : Let's assume all 26 letters and 10 number symbols can be used. How many possible postal codes can the Candadian Post Office create?
For the given circuit derive the state table : For the following circuit, derive the state table. Use the assignments.
What did you lose lately and your financial records : What did you lose lately? Your financial records? Your wedding albums? Aunt Myra's chocolate chip cookie recipe that she got from Nieman Marcus?
Why the health status of a country plays an important role : Create a table that shows how the access, quality, and cost of health care are influenced by the low-income, middle-income, and high-income status of an economy
Why is r and v fashions existing pricing system inadequate : Develop an activity-based cost system for R&V fashion based on year 2016 data. Calculate the activity cost driver rate for each
Contestant chance of winning the car : Why is it better for the contestant to switch doors? Why does this improve the contestant's chance of winning the car?
Draw the timing diagram for the given outputs : Shown below is a 3-bit counter made up of negative edge-triggered JK flip-flops. Draw the timing diagram for outputs QA, QB, and QC in respect with the clock.
An interaction effect is a change in the simple main effect : An interaction effect is a change in the simple main effect of one variable over levels of the second.
Describe three major perspectives of business continuity : Describe two or three major perspectives of business continuity and disaster recovery that you choose to go in depth to discuss.

Reviews

inf1474037

5/15/2017 5:37:17 AM

In 5 (a) expert has not written enough.. can you get some more information added to that part.. it will be great .. in rest i will add by myself. If u can add some more in 5(a) n send me back it will b great. Thnks

len1474037

4/25/2017 8:26:30 AM

Identification, location and synthesis of information on ABC from relevant sources. (ULO 2; GLO 3) (Question 5b of case study) 10 marks (Score range 8-10) Critically analyses, reflects on, organises, synthesises and communicates complex information from a broad range of high quality digital sources in a compelling, authoritative manner. Consistently demonstrates very skilful use of very high-quality, credible, relevant digital sources to support and develop appropriate ideas.

len1474037

4/25/2017 8:26:13 AM

Only Question 1 & 5 (800 words approx.) Criteria/level Application of management accounting techniques (ABC) for costing and control; (ULO 1; GLO 1) Questions from 1 to 5a of the case study. 10 marks Excellent (Score range 8-10) Very clear, concise and thorough explanation of why existing pricing system is inadequate Correct calculation of activity cost drivers and of customers’ profitability Very clear, concise and thorough explanation and discussion of why there are differences in profitability between customers, limitations of the estimates of the customers’ profitability.

Write a Review

Case Study Questions & Answers

  From the scenario, prioritize the attributes of golds reling

From the scenario, prioritize the attributes of Golds Reling's brand from the brand map presented in the scenario according to the attributes that you believe would be most important to the new tablet's target market. Provide support for your respons..

  Discuss critically infosys current and future strategy

Discuss critically Infosys current and future strategy. What advice would you give Kris Gopalakrishnan and KShop has resulted in information overload among staff. What operational measures would you suggest to overcome such challenges?

  Review tarmac business case for diversity

Review Tarmac's Business Case for Diversity and the Learning Resources. Think about Tarmac's approach to managing diversity and how it relates to organisational behaviour concepts and human resource processes.

  Enron case shared activity

Enron was the first nationwide natural gas pipeline network in the United States. As the company grew, executives shifted the company's primary focus from energy delivery and infrastructure to investing in the stock market.

  Ebay inc internet success or fairy tale

Read the case study "eBay Inc.: Internet Success or Fairy Tale? "and answer the question below,   Use the 2002 financial statement data to replicate the Meyer's report calculations that illustrate the conclusion based on the 2001 data reached in the ..

  Mintendo game girl case study

Which option delivers the maximum profit for the supply chain: Sandra's plan, Bill's plan, or no promotion plan at all? How does the answer change if a discount of $10 must be given to reach the same level of impact that the $5 discount received?

  Splash soft drinks case study

Splash Soft Drinks Inc. (SSD) has recently achieved sales that exceeded its expectations after it introduced a new beverage that was greatly welcomed by their customers. The company is currently considering opening a new plant to which some of the pr..

  Details of the task using tesco plc

Details of the task Using Tesco plc (www.tesco.com) as a case study, prepare a report of no more than 2,500 words that:

  What are the common manifestations of alcoholic cirrhosis

What are the common manifestations of alcoholic cirrhosis? Which of these are secondary to hepatocellular failure? Which are secondary to portal hypertension?

  Judge the extent to which the marketing plan at just us

From the case study, judge the extent to which the marketing plan at Just Us! is outdated. Propose two (2) ways that Just Us! could improve the customer experience and thus sustain future growth.

  Read natasha kingery case and answer the questions

Read the DATA CASE on pages 126-127 about Natasha Kingery who is considering furthering her education and is seeking financial advice. Determine the interest rate she is currently earning on her inheritance by going to Yahoo!

  Identify the relevant facts of the case study

Imagine you are the financial controller of XYZ Ltd a corporation that is a very large donor to HOHO. You have recently become aware that its TV advertising has resulted in the charity violating the 25% expenditure ratio for its charity drive.    Id..

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!

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