What problems can arise if you use the results of your full costing approach for decision accounting, e.g. •Calculation of an additional order ? •Eliminating a product? •Assortment decisions? Are there alternatives for the decision accounting?
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Please solve the following task by using the attached picture of background knowledge.
What problems can arise if you use the results of your full costing approach for decision accounting,
e.g.
•Calculation of an additional order ? •Eliminating a product?
•Assortment decisions?
Are there alternatives for the decision accounting?
Step by step
Solved in 4 steps with 4 images
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- Once upon a time, there was an amazing group of students who studied at Cronfwoman University. News had spread about how good these students were – both at school work, and at working with each other. They chit‐chatted with their neighbors in class, collaboratively worked with them and shared many a smiles with them. The amazing students were approached by an investor, Ms Finn Ance Major, who asked for their help. The investor was contemplating setting up a Sandwich Shop at the University and wondered if that was a good investment. What is your recommendation to Ms Finn Ance Major? Here is some information to get you started: 1. The Sandwich Shop will sell made‐to‐order cold and hot sandwiches, and non‐alcoholic beverages only 2. The University has an intake of 6,000 students for the 3‐year Undergraduate program and 1,000 students for the 2‐year Master’s Program per year 3. There are a 4 other food options on campus – but none of these offer sandwiches 4.…Janet has a small business which is a spa and beauty retreat where she also employs a few staff. With her growing operation she has identified the need to implement a computerized accounting information system. In order to have a system that meets her needs exactly and also to save cost, she has asked you to create a simple, customized solution for her business. Her immediate need is for a customer sales information system, so that is what you will now create. Janet’s receptionist maintains a client file that contains each client’s full name, cellphone number, favourite treatment (if known), and special considerations (e.g. allergies). When a client wants to come in for spa or beauty services, they first call Janet’s receptionist for a reservation. The receptionist books a time in her appointment book, noting a unique identifier for the visit, the date and time of the appointment, what service or services the client will receive, the total price, and which staff member will serve the…Sweet Acacia Hardware takes pride in being the "shop around the corner" that can compete with the big-box home improvement stores by providing good service from knowledgeable sales associates (many of whom are retired local carpenters). Sweet Acacia has developed the following two revenue arrangements to enhance its relationships with customers and increase its bottom line. 1. Sweet Acacia sells a specialty portable winch that is popular with many of the local customers for use at their lake homes (putting docks in and out, launching boats, and so on). The Sweet Acacia winch is a standard-manufacture winch that Sweet Acacia modifies so it can be used for a variety of tasks. Sweet Acacia sold 60 of these winches during 2023 at a total price of $20,100, with a warranty guarantee that the product was free of any defects. The cost of winches sold is $16,300. The assurance warranties extend for a 3-year period with an estimated cost of $2,800. In addition, Sweet Acacia sold extended…
- Wheels Inc. is a manufacturer of bicycles sold through retail bicycle shops in the southeastern United States. The company has two sales people that do more than just sell the product-they manage relationships with the bicycle shops to enable them to better meet the consumers' needs. The company's sales reps visits the shop several times per year, often for hours at a time. The owner of wheels is considering expanding to the rest of the country and would like to have distribution through 1000 bicycle shops. To do so, Howe the company would have to hire more salespeople. Each sales person earn $40,000 plus 2 percent commission on all sales. Another alternative is to use the services of sales agents instead of its own sales force. Sales agents would be paid 5 percent of sales. a) determine the number of sales people Wheels need if it has 1000 bicycle shop accounts that need to be called on four time per year. Each sales call lasts approximately 2.5 hours, and each sales rep has…Abdullah is engaged in a business where he uses his creativity of producing ladies bags using the stems of sunflower. What type of business does Abdullah have? a. Wholesaling b. Industry c. Manufacturing d. RetailingAfter taking business classes, Jake, an avid dog-lover, decided to start selling unique pet supplies at trade shows. He has two products: Product 1: "Launch-it"- a tennis ball thrower that will sell for $11. Product 2: "Treat-time"- an automatic treat dispenser that releases a treat when the dog places his paw on the pedal. The treat dispenser will sell for $33. Costs: Jake has hired an employee to work the trade show booths. The work contract is $1,000 per month plus a commission equal to 12% of sales revenue. Jake will also spend $450 per month on trade-show entry fees. Jake is purchasing the products from a supplier in Mexico. Launch-its cost $2 each; Treat-times cost $7.5 each. Shipping and handling on the Launch-its will cost $2 each; Shipping and handling on the Treat-times, which are heavier, will cost $7 each. The shipping and handling costs will be paid by Jake, not the customer. Assume Jake expects to sell 220 Launch-its and 130 Treat-times…