...1 Dakota current allocates warehousing, distribution and order entry cost equally to each customer. DOP’s pricing system is generally independent of the specific level of service provided for customers. They just chose a single cost drive. However, it’s not believable and proper to use this simple method to analyze costs when costs are more complex. So we need to use activity-based cost system to chose different cost drives and allocate costs based on the activity. 2 We identify four different activities for all costs, order handling cost, ship carton cost or normal commercial shipment cost, desktop delivery cost, and order processing cost. As we noticed, the distribution center team reported 90% of their workers proceed carton in and out of facility. So, the total cost for order handling is $4,160,000, which is the sum of 90% of warehouse personnel expense and warehouse expenses (excluding personnel). This cost only depends on the number of cartons moved in and out of storage. So the total handling cost need to be allocated by the number of cartons processed in year 2000, which is 80,000 cartons. Then we get the overhead rate for handling cost that is $52.00 per carton. We only have the freight cost that is associated with normal shipment. We divide total cost $450,000 by the number of carton shipped only through normal shipment, which is 750,000 cartons. Then, we get the overhead rate for ship carton, which is $6.00 per carton. We also have desktop deliver option for...
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...Case 4: Dakota Office Products Summary The general manager of Dakota Office Products (DOP), John Malone was concerned about the financial results for the fiscal year 2000. The company had suffered a historic first loss in spite of sales increase from its prior year as noted in the income statement in (Exhibit 1). DOP distributes office supplies and offers a comprehensive product line. DOP had an excellent reputation for customer service and response time. It had operated several distribution centers with storage locations and shipments pending customer orders. DOP normally ships its orders through commercial truckers and had recently attracted new business by offering a “desk top” option by delivering the packages of supplies directly to individual locations at the customer’s site. The company charges a premium price percentage for the service with hopes of improving margins in its highly competitive business. Products are priced to its end-use customers by first marking up the purchased product cost by about 15% to cover the cost of warehousing, distribution, and freight. Then it adds another markup for general and selling expenses as well as for profit. Pricing is adjusted according to relationship and competitive situations. In the year 1999, Dakota has introduced electronic data interchange (EDI) and a new internet site in 2000, which allowed an automated ordering system that did not require a manual input of data. Even after those...
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...profitability evaluation is highly affected by cost allocation methods. For instance, in question 1, Bismark Bock was ranked as the most profitable label when the plant-wide allocation method based on direct labor hours was used. 3. In theory the two different allocation methods should have no effect on the ending net income. This is because sales prices, number of batches produced and total production costs remain unchanged. According to the calculations, the net income is $51 greater when using activity based allocation compared to using plant-wide allocation (see Exhibit 3-a, 3-b), because the rounding issue. But we think no matter what the allocation method we use, the whole company’s net income will not change. 4. The problem South Dakota Microbrewery faces is the major discrepancies in its profit margin percentages when using the two different cost allocation methods. The company's current plant-wide allocation system concludes that Buffalo Ale is the least profitable label and Bismark Buck is...
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...under-utilized. In contrast, this is not the situation for banks being weak in liquidity, especially some small banks like BacA Bank, whose charter capital is about VND 3,000 billion. Moreover, due to its small scale, it lacks high prestige among households and enterprises to have more depositors than the larger, which forces them to pay high mobilizing interest rate to attract more capital to maintain its deposit base. In order to retain depositors, larger banks also follow the move, though they do not lack capital for lending. The race of interest rate starts and to win against the giants, the small banks often have to offer higher and higher interest rate to be chosen. Many experts believed it was crazy to raise more and more funds in case of low credit growth and lending standstill. Nevertheless, the only way for small banks to sustain...
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...Chelsea Ginsberg 02/22/13 ACCT2301 South Dakota Microbrewery Case 1. Prepare a complete product cost estimate for Buffalo Ale, Bismark Bock an Four Heads Stout (see Exhibit 4) using: a. The plant-wide allocation based on direct-labor hours b. An activity-based cost system Activity rates: Cost estimate based on activity rates: 2. For each costing method, what is the gross margin per batch for each beer label, in dollars? What is the gross margin percentage? What is the total gross margin for each beer label? Plant-wide allocation method: ABC method: 3. What are the advantages and disadvantages for both allocation systems in #1? For the plant-wide allocation based on direct labor hours, the advantages include that it’s an easy method that doesn’t require much to calculate. You get the total cost simply from adding the direct material cost, direct labor cost, and manufacturing cost and divide by the number of materials (in this case, bottles). It’s easier to use for small companies, because, as a disadvantage, it can be an inaccurate method of allocation. In this particular case, each beer has different resources and processes and the estimated price probably doesn’t reflect the actual value. As for the ABC allocation method, it takes into account the different level or resources that the other method doesn’t, making it a more accurate price. It can be used accurately for large companies as opposed to smaller companies; however its disadvantage...
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...EXAMPLE OF A LETTER OF PROPOSAL ENGL 405: TECHNICAL REPORT WRITING INTERNET COURSE Dakota State University Dr. Mark Haas, AssistantProfessor of English This example is fictional and is for illustration purposes only. LETTERHEAD August 12, 2006 Mr.Kevin J. Hanson, Director Newton Hills State Park Canton, South Dakota 57146 Dear Mr. Hanson: Recently I noticed a letter in the editorial section of the Argus Leader in which the writer expressed concern over the present condition and problems relating to Newton Hills State Park, near Canton. A week later I read your reply to that letter, and I was very pleased to find that plans were being developed to improve park conditions. Having visited the park many times myself, I have become aware of the many design problems the park now holds. Participation in outdoor recreation and related activities is growing tremendously across the country. Park managers and supervisors are finding their parks unable to stand the greatly increased use. Roads developed for a few Sunday visitors are almost totally inadequate for the masses of people who converge on parks on warm, sunny weekends and hills erode after large numbers of people trample the vegetation. Moreover, recent events such as the antique car show and the annual folk festival brought even more people into your park, putting an additional strain on the park's resources. However, these problems can be solved...
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...South Dakota v. Dole a U.S Supreme court case challenging the limitations that the constitution puts on the authority of the U.S congress when it uses its power to influence or persuade a individual state. This court case is a conflict between the individual state and the federal power over the state minimum drinking age. The main question of interest in South Dakota v. Dole is when congress wants to promote certain actions or put laws into the works should they be able to use their power to influence the state to adopt the law for example in this case states that did not raise the legal drinking age to 21 would 5 percent less money for their highways. The reason congress wanted the drinking age up was because of a incident involving 4 19...
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...Reconstruction and the West HIS/120 The South After the Civil War, the South was pulverized. It had to make huge adjustment to become sufficient again, this was going to take time and allot of money. It succeeded in compositionally and financially to reinvent itself. In about 35 years after the damage was done it succeeded with steel. Southern iron business grew, especially with supplying the Railroads advancements. he Southern economy was engendered and prospered, in spite of the way that it could never thoroughly equal the North in advancements or wages. Without further ado that there were assuredly 4 million liberated slaves living in the South and a monstrous people of poor white people, there was a great deal of terrible work and business visionaries misused authenticity. What kept the South from a robust Industrial change was the frailty of the White men to work adjacent the liberated slaves. State of psyche at the liberated slaves had not transmuted and was disintegrating. Dull Southerners were proscribed from working in current vocations and simply a little rate of White Southerners were utilized in these vocations, thusly advancement couldn't transpire. The South commenced on the right course and for a period of time it looked akin to the Incipient South had climbed yet hate towards the Black Southerners was the mechanical change rout with The South still unequivocally depending after cultivating as the economy stabilizer. Clearly, the Incipient South was...
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...Case: The Vermillion Housing Initiative The City of Vermillion is a college town of about 10,000 residents situated on the northern Great Plains. The University of South Dakota is the City’s largest employer but it has recently acquired a large high tech company and a mining equipment manufacturer. About two-thirds of the people who work in Vermillion reside outside the city limits because of the lack of suitable housing. Vermillion would like to grow so that it can provide citizens with higher quality of life—more citizens means more tax dollars available. The Vermillion Chamber Development Company recently came up with a 5-year Strategic Plan for expansion (see below). However, developers have been reluctant to put capital at risk believing that it would be hard to make a profit in such a small market. Using what you have learned from this week’s reading and PowerPoint presentation, discuss ways in which Vermillion might use tax policy to stimulate development. Once you have generated some tax policy ideas, evaluate them with respect to fairness. If you were a citizen of the community, would you support any of these policies? Vermillion may implement a tax increment financing policy, which funds economic development projects. This would allow the project to self-finance from property taxes. Community Advancement 5 Year Strategic Plan GOALS Increase Population by 500 Increase Average Taxable Growth by 25% (This data is currently tracked by Clay County Assessor...
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...He along with other Lakota’s decided to live off the reservation in the Powder River area. The treaty was made to bring peace between the Sioux and the white settlers that agreed to settle within the Black Hills Reservation in Dakota. The treaty also guaranteed the Lakota important land and the Black Hills Territory. Following the Fort Laramie Treaty, Crazy Horse left the reservation and made friends and followers of some Brule. He married a Northern Cheyenne woman and later an Oglala woman as well. Sitting Bull’s bad intuition about the treaty became true in 1873 when plans were being made by the Northern Pacific Railroad to lay tracks through the Yellow Stone...
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...Analysis: The Plague of Doves Western Governors University Analysis: The Plague of Doves There were many compelling choices for my first Introduction to Humanities analysis. But Louise Erdrich had previously caught my eye while reading the course material, and I remember how much her work had made an impression on me; her dedication to writing about the Native American experience, and how multiculturalism in America had not necessarily been kind to them (MindEdge, Inc., 2015). So I was pleased to see that one of the choices was the first chapter of her novel “The Plague of Doves”. After reading the first chapter my initial thought was; “I want to read more!” It was well written, easy to read, and presented the turn of the 20th century life of the Native American vividly. The author’s use of words and prose transported me back to that time, how the narrator’s great-grandparents met, ran away, and eventually returned to the reservation. Their struggle to survive together amidst racial segregation and violence was well interspersed with stories of the burgeoning love life of the narrator in the 1960’s. This was the one aspect that impressed me the most, how the stories of the two generations were interspersed together in a way that tied them together, each story flowing from one to the other, but in a way that was easy to track and understand. The impression that I got from this style of writing was the apparent contrast and similarities of the generations, and at the...
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...Discrimination has been around as long as humans have been in existence. It has enslaved millions and millions it has forced entire tribes to migrate from state to state. It has locked up countless number of innocent people and it stripped the right to vote for many, even when it was promised to them. It even denied entry into this country. Skin color, gender or even social class greatly affected the way one was treated. But during the 1800s it was mainly skin color that determined how you were going to be treated. If you were white then you were always treated with great respect. Equality is a very simple concept but why doesn’t everyone always get it? My mother always used to stress this to me “Treat others the way you want them to treat you”. We all want to live in a world of perfect harmony and interaction. But for equality to truly exist everyone has to sacrifice some of there pride and present respect in the same manner they wish to receive it in. As simple as the concept of it may be, the meaning of it however never seems to be exact not to even mention unachievable. Whenever philosophers, lawyers or professors elaborate on the “principle” of equality, no conclusion can ever be drawn. If you were to compare two toy dolls from the same make and the same exact model, they both will look similar or equal in proportion. However in reality there is no such thing because every object however similar they seem, can be perceived from a different angle because the objects or...
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...McBride Financial Marketing Plan University of Phoenix McBride Financial Marketing Plan McBride Financial Services is a mortgage lender that specializes in conventional, FHA, and VA loans for home purchasing and refinancing. The company is presently headquartered in Boise, Idaho and is looking to expand its operations into Wyoming, Montana, North Dakota and South Dakota. McBride Financial Services current mission is to be the preeminent provider of low cost mortgage services using state of the art technology in the five state areas of Idaho, Montana, Wyoming, North Dakota, and South Dakota. With the implementation of a successful marketing plan, these future goals of McBride Financial Services to expand and become a preeminent provider of low cost mortgage services should easily become easily attainable. Naturally, the first step in the marking plan would be to research. The primary interest of McBride Financial Services is to establish a new market of people in need of assistance with financial services. In order to achieve this, McBride Financial Services will need to perform research on the areas current market trends and market values. This information will provide a better understanding of what products to market and how to market the products. The company will also need to look at current internal marketing plans in place to determine strengths and weaknesses, so that a better picture is made as to what areas to improve. This research will also help determine...
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...Mount Rushmore Grab your cameras and get ready to take some pictures of the 5,725-foot statue of the four presidents in the Black Hills of South Dakota. There are many different things to do at Mount Rushmore and there are many campsites to stay at. Mount Rushmore is a beautiful place to visit. On a typical day you might see several different species of wildflowers, deer, chipmunks and turkey vultures. The three things that make the Black Hills an exciting place to visit, includes the background history, activities, and near by sights. In 1923, Doane Robinson was the one who suggested carving some giant statues in the Black Hills of South Dakota. The giant statues were made to attract more people to the Black Hills with Colossal carvings of Western heroes. Robinson was not alone in carving the statues into the Black Hills. “Robinson had help from Senator Peter Norbeck and Congressman William Williamson” (nps.gov 2). “Congress passed legislation authorizing the mountain carving in Harney National Forest Preserve (now Black Hills National Forest)” (nps.gov 2). Robinson then contacted Gutzon Borglum, who agreed to come out to the Black Hills in 1924 to look at the area to see if the Carvings were possible. The plan was to carve the Needles area into tall granite figures, but he later found them to be too thin and weathered to support sculpture on a grand scale. Later Borglum was told about Mount Rushmore and immediately searched the area for a perfect area for the statues. “When...
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...When I was stationed in South Dakota I owned a 1994 Audi A4. I enjoyed the vehicle so much that ever since then I have wanted to own a new Audi A4. The current price of a 2013 Audi A4 is $33,395. In twelve years I assume that in order to keep consumers returning to their product they will continue to keep the price about the same. My goal is to save up enough money in 12 years to pay with cash. Let assume that I have found an investment that that promises an average return of 10% per year. The desired item is a new Audi A4 The cost in 12 years will be about $33,395 The average interest rate of the investment is 10%. The Present Value Formula is P = A(1+r)-n where P is the present value that will amount to A dollars in n years at interest rate r compounded annually. The numbers are plugged into the formula P = A(1+r)-n and the quantity raised to a power and has a negative exponent of –n. It will look like: P = 33395(1 + .10)-12 Next I will add inside the parentheses. P = 33395(1.10)-12 Now by using the rules of exponents the negative exponent will change position and convert to a positive by finding the reciprocal and I will calculate 1.1012. P = 33395(1.10)12 P = 33395/(1.10)12 P = 33395/3.138428… Finally I will show the value of P using the formula. P = 10640.67 Looking at the results of the formula, if I invest let’s say $11000.00 today I will have the $33395 and some change in 12 years to purchase my...
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