Premium Essay

Case 2 - Management Decision Making

In: Business and Management

Submitted By JackLim
Words 1348
Pages 6
Managerial Decision Making, Case 2, Greetings Inc. Activity Based Costing
|Case 2 |
| Greetings Inc.: Activity-Based Costing |
|This case is from the book: Managerial Accounting: Tools for Business Decision |
|Making, 5th Edition |
|Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso |
|©2010 |
|And was answered by some students. |
| |
| |
1. Activity Based Costing benefits businesses that are more complex in nature. In this case, Greetings. INC has added a new product line, Wall Decor, which permits them to grow without expanding their physical stores; however, they have significantly raised their overhead costs by multiplying their cost drivers. Not to mention the fact that they have incorporated a largely automated system into their product line, which we know calls for an ABC system. The main reason to move to ABC though, I’d say, would be because it will allow management to make better decisions and move away from the “cash machine” and “lemonade stand” metaphor simply because overhead costs will be allocated in such a way that corresponds to either framed or unframed prints instead of considering the same overhead for both products. By doing so managers will be able to price the prints competitively while still maintaining a profitable margin. An activity-based costing system may be appropriate for Wall Décor, when overhead allocation based job-order costing provides product cost distortion. Wall Décor should change its costing system for selling its high volume produced products whereas low-volume produced products have good profit.
2. The activity-based overhead rates:
| Activity | Estimated Overhead | Expected use of Cost Drivers | Activity-Based Overhead Rates |
| | | | |
|Picking prints |$36,000 |102,000 prints |$0.30 per print |
| | | | |
|Inventory selection and management |$91,700 |131,000 components |$0.70 per component |
| | | | |

Similar Documents

Premium Essay

Accounts

...Course Outline School: Department: Course Title: Course Code: Course Hours/Credits: Prerequisites: Co-requisites: Eligible for Prior Learning, Assessment and Recognition: Originated by: Creation Date: Revised by: Revision Date: Current Semester: Approved by: Business Graduate Studies Accounting for Managerial Decision Making ACCT 701 56 N/A N/A Yes Basil Chan, John Harris Summer 2013 Geoffrey Prince Summer 2014 Winter 2015 Chairperson/Dean Students are expected to review and understand all areas of the course outline. Retain this course outline for future transfer credit applications. A fee may be charged for additional copies. This course outline is available in alternative formats upon request. ACCT 701 CENTENNIAL COLLEGE Accounting for Managerial Decision Making Course Description This course will introduce the student to the principles of management accounting. Topics include costvolume-profit relationships, relevant costing, performance measurement, and the application of management accounting concepts and techniques to support business decision making. Program Outcomes Successful completion of this and other courses in the program culminates in the achievement of the Vocational Learning Outcomes (program outcomes) set by the Ministry of Training, Colleges and Universities in the Program Standard. The VLOs express the learning a student must reliably demonstrate before graduation. To ensure a meaningful learning experience and to better understand...

Words: 2727 - Pages: 11

Premium Essay

Manasci Syllabus

...INSTRUCTOR: MR. ENRICO L. CORDOBA (lance_emeric@yahoo.com) COURSE DESCRIPTION: MANASCI (MANAGEMENT SCIENCE) is a 14-week course on the study of quantitative techniques in business decision-making. The course covers linear programming models and its special algorithms; network (PERT/CPM) models; decision-making theories and processes; and decision tree construction and analysis. LEARNING OUTCOMES (LO): On completion of the course, the student is expected to be able to do the following: |ELGA |LEARNING OUTCOME | |Effective communicators |To present in class the application of quantitative techniques to management decision | | |models through case analysis | |Critical and creative thinkers |To develop analytical thinking and proper reasoning in the application of quantitative | | |techniques to management decision models | |  |To acquire the essential skills for the proper use of quantitative techniques in | | |business decision-making | |Technically proficient...

Words: 1361 - Pages: 6

Premium Essay

Case Study Solving

...Case Study Method in Management Management education is mainly aimed at developing managerial skills in students. Amongst the various methods adopted in teaching management and management functions, the case study method developed in 1910 in U.S.A. and is now being propagated during the last decade or so, providing opportunities to both the teacher and the taught to promote managerial I understanding and competence, since it helps in contemplation and discussion of an actual situation. It is a wrong notion that the case studies are confined to management students. Cases may pertain lo any discipline, where skills for solving complex unstructured problems or preparing plans are required. The origin of case study methods itself can be traced to Harward Lawyers. Cases may describe problems facing individuals, groups, institutions or even Nations. Through a case study one learns a broad range of skills and has many alternatives. Case studies encourage the practice and attainment of analytical and communicative skills. Case studies allow a different kind of learning. It is close to the learn by doing' approach. Cases are intended to stimulate the reality of the manager's job. The material in the case provides data for analysis and decision-making. Cases require the student to make decisions about the situations presented and to defend those decisions. In real decision-making the student will have lo persuade superiors that his analysis and solutions are the best and hence the...

Words: 3549 - Pages: 15

Premium Essay

Business

...NZIM Diploma in Management NZIM Diploma in Practice Management (Health) NZDipBus 530 Organisation & Management Assessments & Marking Guides Student ©SBG 2010 Page 1 of 23 530 Organisation & Management PRESCRIPTION: 530 ORGANISATION AND MANAGEMENT This prescription replaces 130 Organisation and Management. CORE PRESCRIPTION Level CREDIT VERSION INTRODUCED AIM 5 20 1 2006 Students will understand the factors that influence management and the organisation and apply a range of factors. Nil PREREQUISITES ASSESSMENT WEIGHTINGS Learning outcomes 1. Students will identify the purpose of organisations and management. 2. Students will understand the importance of the development of management philosophies and their influence on current management practices. 3. Students will demonstrate their understanding of the influence of environments on organisational behaviour, by applying knowledge to a typical situation. 4. Students will understand the importance of ethics and social responsibility within an organisation. 5. Students will understand the elements of problem solving and apply a range of techniques that aid operational decision making. 6. Students will understand the purpose of planning and control and apply processes to a given situation. 7. Students will discuss two organisational structures, evaluate and recommend a structure for a given situation. 8. Students will understand and apply knowledge of leadership, motivation and delegation. 9. Students...

Words: 5778 - Pages: 24

Premium Essay

Case Method

...PASSION FOR LEARNING CASE & CASE METHOD PGP Orientation 20/6/2015 Prof. Avinash Mulky Slides Courtesy Prof. Ganesh Prabhu Nature of Management Activity Management is the continuing process of organizing human, physical, technical and knowledge elements towards the achievement of a stated mission in line with a vision and a value system and under constrained resource conditions. Managerial Decision Making • Management decisions often involve the projection of consequences into a highly uncertain future. • Management decisions have enormous variety and most decisions depend on the decision context. • Management decisions can relate to both repetitive and unique situations. • Management decisions often have to be taken on an imperfect knowledge of underlying phenomena. • Management decisions often have to be taken on basis of untested cause-effect relationships. Data for Managerial Decision Making • All the data required for taking good managerial decisions is rarely if ever available or complete. • Data used can range from subjective to objective. • Data used can range from quantified to judgmental. • Probability judgments, expectations and intuitions are needed to prop up management decisions. Good Managerial Decision Making • Managers often need to create new responses to managerial situations never experienced before. • Good managerial decisions making requires the ability to accumulate...

Words: 508 - Pages: 3

Premium Essay

Laudon Ch5

...Management Information Systems MANAGING THE DIGITAL FIRM Kenneth C. Laudon New York University f Jane P. Laudon Azimuth Information Systems PEARSON feerttifie tall Pearson Education International Brief Contents Part One Chapter 1 Chapter 2 Chapter 3 Chapter 4 Part One Project Organizations, Management, and the Networked Enterprise 1 Information Systems in Global Business Today 2 Global E-Business: How Businesses Use Information Systems 38 Information Systems, Organizations, and Strategy 80 Ethical and Social Issues in Information Systems 124 Analyzing Business Processes for an Enterprise System 165 Part Two Chapter 5 Chapter 6 Chapter 7 Chapter 8 Part Two Project Information Technology Infrastructure 167 IT Infrastructure and Emerging Technologies 168 Foundations of Business Intelligence: Databases and Information Management 222 Telecommunications, the Internet, and Wireless Technology 260 Securing Information Systems 312 Creating a New Internet Business 351 Part Three Chapter 9 Chapter 10 Chapter 11 Chapter 12 Part Three Project Key System Applications for the Digital Age 353 Achieving Operational Excellence and Customer Intimacy: Enterprise Applications 354 E-Commerce: Digital Markets, Digital Goods 388 Managing Knowledge 428 Enhancing Decision Making 470 Designing an Enterprise Information Portal 508 Part Four Chapter 13 Chapter 14 Chapter 15 Part Four Project Building and Managing Systems 509 Building Systems 510 Project Management:...

Words: 3508 - Pages: 15

Premium Essay

Baller

...BUSINESS "The Frank G. Zarb School of Business at Hofstra University provides a quality education that prepares professionals for a dynamic, globally oriented environment “ DEPARTMENT OF MANAGEMENT, ENTREPRENEURSHIP AND GENERAL BUSINESS GBUS 180 - Business Policy and Strategy Spring 2013 (undergraduate course) All Students are responsible for reading this course syllabus carefully, and complying with all course requirements stated in it. INSTRUCTOR’S NAME Dr. Matthew Sonfield OFFICE HOURS Tues & Thurs 8:00 – 9:30 AM and by appointment LOCATION OF OFFICE 229 Weller Hall CAMPUS TELEPHONE 463-5728 E-MAIL ADDRESS Matthew.Sonfield@ hofstra.edu (e-mail messages will receive responses much faster than voice-mail messages) HOME PAGE http://people.hofstra.edu/hu/faculty/matthew_sonfield/ GENERAL INFORMATION Location of Department Office 228A Weller Hall Telephone of Department (516) 463-5726 Department Chairperson Dr. Li-Lian Gao HOFSTRA UNIVERSITY BULLETIN DESCRIPTION OF COURSE A capstone course enabling students to integrate functional area knowledge in order to effect managerial decisions and assume leadership roles in organizations. Theory and concepts are applied using both case analysis and a computer-based business simulation. Topics include: elements of the strategic planning process, such as strategy formulation and implementation; ethics and corporate social responsibility;...

Words: 5257 - Pages: 22

Premium Essay

Aicpa

...Ethical Obligations and Decision Making in Accounting Text and Cases Steven M. Mintz, DBA, CPA Professor of Accounting California Polytechnic State University, San Luis Obispo Roselyn E. Morris, PhD, CPA Chair and Professor of Accounting Texas State University-San Marcos Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St. Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney Taipei Toronto Table of Contents Chapter 1 Integrity: The Basis for Ethics in Accounting 1 What Is Ethics? 1 Definition 1 Application of Ethical Reasoning in Accounting DigitPrint Case 33 32 Conclusion 34 Discussion Questions 34 Endnotes 36 Chapter 2 Cases 37 2 Case 2-1: A Faulty Budget 38 Case 2-2: Better Boston Beans 39 Case 2-3: Eating Time 40 Case 2-4: Is Internal Whistle-Blowing "Right"? Case 2-5: Play Ball 43 Case 2-6: Supreme Designs, Inc. 44 Case 2- 7: The City of West Buckle 46 Case 2-8: The CPA Review Course 47 Case 2-9: The Ethics ofiPod-ing 48 Case 2-10: The Tax Return 49 Distinguishing between Ethics and Morality Religious and Philosophical Foundations of Ethics 3 Teleology 4 Deontology 6 41 Acting with Integrity Personal Integrity 8 7 The Moral Point of View 7 The Six Pillars of Character.... 8 Trustworthiness 8 Respect 10 Responsibility 10 Fairness 11 Caring 11 Citizenship 12 Chapter 3 Ethical Decision Making in Business 50 What Is Business Ethics...

Words: 1401 - Pages: 6

Premium Essay

Mgt4760-Course Outline-Sem 1-1213

... | |INTERNATIONAL ISLAMIC UNIVERSITY MALAYSIA | |COURSE OUTLINE | | | |Kulliyyah / Institute |Kulliyyah of Economics and Management Sciences | |Department / Centre |Department of Business Administration | |Programme |Bachelor of Business Administration | |Name of Course / Mode |Strategic Management | |Course Code | | | |MGT 4760 | |Name (s) of Academic staff / | | |Instructor(s) ...

Words: 1426 - Pages: 6

Premium Essay

Case Study

...SCHOOL MBA Management Accounting- ACC-701 Spring -2014 Faculty: GIFT Business School Credit hours: 03 Course level: Graduate (Elective) Campus/Location/Instruction Mode: GIFT University/On Campus/In Person Course Instructor: Mr. Naveed Ahmad Mughal naveed.mughal@gift.edu.pk Consultation hours: Monday to Friday (as proposed by the instructor) Pre-requisite: ACC-512 / 516 Timing As per university time table This document was last updated: February 18, 2014 BRIEF COURSE DESCRIPTION: The aim of the course is to provide an in depth knowledge and understanding of the use of accounting information for internal purposes contrary to the external disclosure focus of the financial accounting. In particular, the objective of the course is to familiarize students with the fundamental concepts of management accounting system, and use of such information for decision making and performance evaluation. COURSE LEARNING OBJECTIVES: The primary objectives of this course are: 1. To develop an understanding of the costing, cost calculation. 2. To develop understanding of application of different techniques of cost allocation. 3. To understand the relationship between cost and volume and application of this in making different decisions. 4. To develop ability to make different decisions by using accounting information. 5. To understand the application of budgeting and standard costing as controlling tool. 6. To apply the different tools of management accounting for...

Words: 921 - Pages: 4

Premium Essay

Operational Approach to Management

...APPROACHES TO MANAGEMENT Dr.M. Thenmozhi Professor Department of Management Studies Indian Institute of Technology Madras Chennai 600 036 E-mail: mtm@iitm.ac.in APPROACHES TO MANAGEMENT 1) 2) 3) 4) 5) 6) 7) 8) 9) Empirical Approach Human Behaviour Approach Social System Approach Decision Theory Approach Mathematical Approach Socio-Technical Systems Approach Systems Approach Contingency Approach Operational Approach REASONS & PROBLEMS 1) Semantic problems in management literature. 2) Contributions from different disciplines. 3) Misunderstanding of principles. EMPIRICAL APPROACH • • • – – – – Study of managerial experiences and cases(mgt) Contributors: Earnest Dale, Mooney & Reiley, urwick. Features Study of Managerial Experiences Managerial experience passed from participationer to students for continuity in knowledge management. Study of Successful & failure cases help practicising managers. Theoretical research combined with practical experiences. • – Uses Learning through experience of others • – – Limitations No Contribution for the development of management as a discipline Situations of past not the same as present. HUMAN BEHAVIOUR APPROACH • – – Organisation as people a) Interpersonal Behaviour Approach - Individual Psychology b) Group Behaviour Approach - Organisation Behaviour • – – – – Features Draws heavily from psychology & sociology. Understand human relations. Emphasis on greater productivity through motivation...

Words: 749 - Pages: 3

Premium Essay

Case Study

...------------------------------------------ Course Description:  The management of complex organizations requires an understanding of the nature of human behavior in corporate and other organizations, styles of motivations, personality and perceptions, company leadership, power and authority, strategies of organizational design and change, teamwork, conflict and collaboration, and culture. Organizational Behavior explores individual and group behavior within work organizations and helps students understand, describe, and explain human behavior at work. Course Objective:  The course shall be completed in 33 sessions and after completing the course the student will be able to: * Apply and analyze different concepts related to organizational behavior * Define the purpose and nature of the field of organizational behavior * Understand and learn how to Manage individuals for high performance by developing your understanding of individual and interpersonal behavior * Understand and learn how to manage groups for high performance through an exposure to theories, concepts, and principles of OB Prescribed Textbook:  Organizational Behavior, Stephen P Robbins,Timothy Judge and Neharika Vohra 14e, Pearson.      S.No. | Topic | Case | No. of Session | Concepts covered | 1 | Management Thought and OB: Definition of Management, Approaches to Management: Classical, Behavioral, Management Principles of Taylor, Weber, Fayol; Hawthorne Studies, fields contributing...

Words: 1214 - Pages: 5

Premium Essay

Dferewrwerwe

...Business AnAlytics And intelligence Course Starting: 29 June 2014 Application Deadline: Early Decision 28 February 2014 Regular Decision 15 April 2014 (Batch 5) (Classes conducted on-campus as well as off-campus) Certificate Programme on Business Analytics and Intelligence BATCH 5 in god We trust, All Others Must Bring data - W edwards deming he theory of bounded rationality proposed by nobel laureate Herbert Simon is evermore significant today with increasing complexity of the business problems; limited ability of human mind to analyze alternative solutions and the limited time available for decision making. introduction of enterprise resource planning (eRP) systems has ensured availability of data in many organizations; however, traditional eRP systems lacked data analysis capabilities that can assist the management in decision making. Business Analytics is a set of techniques and processes that can be used to analyse data to improve business performance through fact-based decision making. Business Analytics is the subset of Business intelligence, which creates capabilities for companies to compete in the market effectively. Business Analytics is likely to become one of the main functional areas in most companies. Analytics companies develop the ability to support their decisions through analytic reasoning using a variety of statistical and mathematical techniques. thomas devonport in his book titled, “competing on analytics: the new science of winning”, claims...

Words: 4378 - Pages: 18

Premium Essay

Mis 301

...MIS 301 Introduction to Information Technology Management FALL 2010 - Unique Numbers: 03905, 03910, 03915 Instructor tructorBin Gu – bin.gu@mccombs.utexas.edu Dr. Information, Risk, & Operations Management (IROM) Dept. Office CBA 5.228 Office Hours MW 4:00-5:00 pm or by appointment Qian Tang - qian.tang@phd.mccombs.utexas.edu Teaching Assistant CBA 1.308B Office TBD Office Hours Course Description Information technology (IT) has transformed all aspects of 21st century business and everyday life. New IT investments continue to be staggering. Worldwide, over $2.5 trillion is invested in IT. In the U.S., over 50% of capital expenditures are related to IT. Information systems influence business processes, organizational structures, and the ways people do business, work, and communicate. Emerging technologies have triggered new forms of organization and business process innovation; they have also impacted organizational structure, culture, politics, decision making, and society as a whole. IT is transforming how physical products are designed, how services are bundled with products, and how individuals interact with businesses and with other individuals. A silent transformation is occurring as more and more physical products use embedded IT to improve customer experience and product performance. The pervasiveness of IT is expanding global trade and changing how and where work is performed. It is vital that future managers—in every area of business—have a...

Words: 3229 - Pages: 13

Premium Essay

Course Outline

...POST GRADUATE PROGRAMME IN MANAGEMENT AY 2015-16 TERM: III TITLE OF THE COURSE: FINANCE II CREDITS: 4 Name of the Faculty Arnab Bhattacharya Gaurav Singh Chauhan Kousik Guhathakurta Radha M. Ladkani Faculty Block/ Room No. J BLOCK C-102 A-106 J BLOCK Email Telephone Number arnabb@iimidr.ac.in gauravs@iimidr.ac.in kousikg@iimidr.ac.in; radhal@iimidr.ac.in; 0731-2439589 0731-2439592 0731-2439518 0731-2439698 COURSE DESCRIPTION The second core course in Finance deals with the core corporate finance functions in an applied setting. The participants are exposed to real world corporate finance decisions to be taken up by managers for creating value. Such an exposure is accomplished through a mix of theory and practice. The pedagogy employed reflects a judicious mix of case discussions, lectures and problem solving approach. COURSE OBJECTIVES The objective is to familiarize participants with the three major decision areas of Corporate Finance, viz. the investments, financing and earnings distribution decisions. Subsequently the participants are to be offered an integrated view of the decision areas by discussing the issues in corporate valuations and risk management. The course aims at sharpening the financial decision making skills of the participants. EXPECTED LEARNING OUTCOMES AND ASSOCIATED MEASURES At the end of the course student is expected to accomplish the following learning outcomes. Alignment of Course Learning Outcomes (CLOs)...

Words: 1664 - Pages: 7