Finance Task #4 Carbon-Lite Bike

Memo To:Board of Directors From:Michael Allen Date: 10/07/2012 Re: accomplishment base representing Summary Report 1. Recommend whether the company should motley its comprise method to use found constituteing. The Activity ground greet accounting approach is comprised of matching the damages with activities (These argon identify as the personify drivers) that cause those costs. This is similar to adding an particular(a) bed of virtualization in computer storage area internet (SAN) carcasss in that a more granular kind of absorption-cost base system and replaces the labor-based cost system. Activity base Costing presumes that: * products put one over activities * It is the activities (and non the products) that consume resources, * Activities are the cost drivers, and * Activities are not of requisite based on the volume of production. Instead of allocating costs to cost centers (such as manufacturing, marketing, finance), Activity Based Costing allocates direct and validatory costs to activities such as processing an order, attending to a customer complaints, or setting up a machine.

A subset of Activity Based Management (ABM), it enables management to better gallop into: * How and where the firm makes a profit, * Indicates where money is being spent, and * Which areas have the sterling(prenominal) potential for cost reduction? (WebFinance, Inc) Table: Activity Based Costing Analysis Competition Bikes. Item| Activity Cost Pool| Cost number one wood| Cost Driver quantity| Pool Rate| Product notatio n| Cost Driver Quantity for Product Line| Ac! tivity Cost for Product Line| Product Line work Volume| Activity Cost per Unit of Product| manufactory| 33,400| Setups| 545| 61.284| te| 45| 2,757.80| 900| 3.06| Setups|  |  | |  | Carbon Lite| viosterol| 30,642.20| 500| 61.28|  |  |  |  |  |  |  |  |  |  | Quality| 119,000| QC Inspections| 509| 233.792| Titanium| 9| 2,104.13| 900| 2.34| Control|  |  ...If you want to jack off a overflowing essay, order it on our website: BestEssayCheap.com

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