...1. Why would any customer, let alone large advertising agencies and departmental stores, go to Colorscope rather than go to large printers listed in Exhibit 3? Before desktop publishing became popular, Colorscope had a competitive advantage through its expensive proprietary computer equipment that could produce complicated print special effects. Colorscope had also been able to build strong relationships with valuable customers through the years and had a good reputation for providing high quality work in its field. Another reason why Colorscope could compete with the large printers was the high fragmentation of the pre-press industry. This was due to the fact that most pre-press companies focused on just a few print products (e.g. catalogs, newspapers or coupons) and had strong specialized expertise in these. Because of that, Colorscope could provide higher quality than the large printers in the fields where it had specialized. Before the dawn of desktop publishing, which led to commoditization of the services, competition was more based on quality than on price. As a small agency, it is also probable that Colorscope could be more flexible in meeting specific demand and provide more tailored services to the few customers it served, compared to the large printers which would have a bigger and more bureaucratic organization. 3. What you have done above is a “full-cost” analysis. This is in contrast to a “direct-cost” analysis that ignores overhead costs. Is full cost...
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...Recommendations for COLORSCOPE INC. By GROUP – 2 (GROUP - CD) A report submitted in fulfillment of the assignments for MANAC - II WMP 2013 [pic] Indian Institute of Management, Lucknow Noida Campus 2010 Date: 28/October/2010 |WMP6004 |AKSHAY BANSAL | |WMP6005 |AMIT AGARWAL | |WMP6007 |ANKIT SURI | |WMP6008 |ANKUSH VED | |WMP6009 |ANUBHAV KUMAR JAIN | |WMP6012 |BIKRAMJIT DEBNATH | |WMP6015 |CHANDER SHEKHAR SIBAL | |WMP6052 |SUROJEET SADHU | CASE NAME: ColorScope Situation: Colorscope is an example of a small firm seeking ways to compete in an increasingly intense competitive environment in pre-press printing. The external environment had changed with the advent of new technology, and new players entering the market had increased the supply side of the industry. Because Colorscope was not the market leader, its only option is to adopt a cost containment and quality control strategy. A simplified activity-based costing system was used to measure customer profitability. Complications: Colorscope found that many customers were unprofitable, and a few customers were responsible for most of the firm's profits. On further analysis, it was determined...
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...III. Two Stage Cost System Analysis The two stage method is always used in Activity-Based Costing, which assigns resource costs to cost objects base on separate activities. In stage one, the total overhead costs are allocated to the separate activities base on different resource drivers. In stage two, the costs of activities are allocated to each cost object base on cost drivers. In this case, because the wages and depreciation costs can be traced directly to each workstation, we only need to allocate the rent and other indirect costs to the five workstations. In stage two, we have to assign the overhead cost of each workstation to each job base on the labor hours that each job consumed. Table 1: Stage One: The total overhead allocation to different workstations Job Preparation Scanning Assembly Output Quality Control Idle Total Wages $ 8,000 $ 32,000 $ 64,000 $ 10,000 $ 11,000 $ 125,000 Depreciate 500 25,000 $ 10,000 14,000 500 50,000 Rent 2,000 2,000 8,000 4,000 1,000 13,000 30,000 Others 1,311.5 5,246 10,492 1,639 1,311.5 20,000 Total Overhead 11,811.5 64,246 92,492 29,639 13,811.5 13,000 225,000 Allocation rate $ 73.82 $ 100.38 $ 72.26 $ 148.20 $ 86.32 In table 1, we allocate the total overhead costs to different workstations. Because the labor hours of each workstation are available in this case, we can use the labor hours as the cost drive to assign the overhead of each workstation to each job. The overhead cost per labor hour is the rate that...
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...TSA Screenings & Your Rights Sai / saizai.com Updated 14 Jan 11 http://bit.ly/tsarights Rights 1. URL is.gd/ihEwf You have the right to not go through electronic strip search (aka AIT, MMW, WBI) … but if you are “selected” (e.g. “SSSS” mark) and choose not to go through, you will get an “enhanced pat down” … and even if you do go through, you might get an “enhanced pat down” anyway 2. 3. 4. 5. 6. You have the right to a patdown by someone the same gender as you present yourself … unless they’re short staffed—but you must be told so before going through the metal detector is.gd/ihEHd is.gd/ihEHd is.gd/ihF11 is.gd/ihFkn is.gd/ihEfc#4 is.gd/ihJ0Y is.gd/ihFCu is.gd/ihIgo#p63 is.gd/ihIws is.gd/ihIJe is.gd/ihFU6 bit.ly/eNvwqQ is.gd/ihFNv bit.ly/g3bP4t You have the right to have patdowns witnessed by someone of your choice … so long as they’re allowed to be there at all (e.g. they’re flying with you) You have the right to have patdowns conducted in private You have the right to have your belongings in view at all times … but not to access / touch them You have the right to take photos/videos in public areas, and to not delete anything … except of xray screens, or if it would interfere with / slow down screening … except if the airport, state, county, or city has a rule/law against it 7. You have the right not to be touched by anyone without your consent … except the minimum “necessary to detect weapons or explosives” … but you must be told before...
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...3. Firs of all, full absorption cost analysis can guide pricing decisions. To be survive and profitable in the long run, the prices charged must exceed total costs. As indirect costs, such as rent cost, are also necessary supporting cost to complete the job, indirect cost should not be ignored. If Colorscope uses the direct cost analyses to make its pricing decisions, the product will be under cost, resulting in under pricing. The underpriced product, although the manager has originally thought that it could bring about increasing, will in fact lead to less revenue than the cost of resources they use. What’s more, by taking indirect costs into consideration and allocating overhead costs to the product, company can calculate a cost of each particular product depending upon the resources it consumes. In addition, full cost analysis contributes to better management. Inaccurate product costs will mislead managers about the profitability of different products. Therefore, managers might unknowingly promote unprofitable products while deemphasizing profitable products. Lastly, full absorption cost analysis helps to find unnecessary costs that should be eliminated, to manage the overhead costs that are usually fixed in the short run but are variable in the long run, and to improve product quality through better product and process design. The full cost analysis is based on the assumption that overhead costs are variable with cost object. For example, the supervision, quality control...
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...|San Patricio De Cúmbaya | |Teléfono 083184574 • Correo Electrónico taty87_taga@yahoo.com. | | | QUÍMICA – ESPECIALIZACIÓN ALIMENTOS Tatiana Alexandra Feijoo Vallejo [pic] |Información personal | | | | | |Estado civil: Soltera | | |Nacionalidad: Ecuatoriana | | |Cédula de identidad 172036731-5 | | |Edad: 26 años | | |Lugar de nacimiento: Quito | | |Fecha de nacimiento: 9 de Abril de 1987 ...
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...Job# | Revenue | Direct cost | O/H allocated cost | | Profit | Profitability % | | | | | | | | 61001 | 9600 | 5400 | 8332 | | -4132 | -43.0% | 61002 | 9600 | 3500 | 7253 | | -1153 | -12.0% | 61003 | 23000 | 4500 | 13013 | | 5487 | 23.9% | 61101 | 12000 | 1800 | 5007 | | 5193 | 43.3% | 61102 | 11000 | 1500 | 4863 | | 4637 | 42.2% | 61201 | 11000 | 1500 | 5324 | | 4176 | 38.0% | 61202 | 23000 | 3300 | 9537 | | 10163 | 44.2% | 61203 | 22000 | 3400 | 10184 | | 8416 | 38.3% | 61204 | 20000 | 3200 | 9522 | | 7278 | 36.4% | 61301 | 50000 | 13000 | 39554 | | -2554 | -5.1% | 61401 | 7800 | 1800 | 5025 | | 975 | 12.5% | 61402 | 8000 | 3100 | 6305 | | -1405 | -17.6% | 61403 | 8000 | 3900 | 5612 | | -1512 | -18.9% | 61404 | 9000 | 2100 | 6129 | | 771 | 8.6% | 61405 | 9800 | 2000 | 5842 | | 1958 | 20.0% | 61501 | 11000 | 2200 | 6160 | | 2640 | 24.0% | 61502 | 11000 | 3600 | 6983 | | 417 | 3.8% | 61601 | 20000 | 3300 | 9425 | | 7275 | 36.4% | 61602 | 2000 | 600 | 1607 | | -207 | -10.3% | 61603 | 1400 | 1000 | 1827 | | -1427 | -101.9% | 61701 | 8000 | 2100 | 5973 | | -73 | -0.9% | 61702 | 10000 | 2500 | 6290 | | 1210 | 12.1% | 61801 | 4000 | 1600 | 1753 | | 647 | 16.2% | 61901 | 2000 | 1700 | 1751 | | -1451 | -72.6% | 61902 | 12000 | 2200 | 6336 | | 3464 | 28.9% | 62001 | 0 | 200 | 553 | | -753 | | | 0 | | | | 50039.73361 | | Total | 315200 | Exhibit 9 | Hours clocked | Job# | Job Preparation...
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...3. Firs of all, full absorption cost analysis can guide pricing decisions. To be survive and profitable in the long run, the prices charged must exceed total costs. As indirect costs, such as rent cost, are also necessary supporting cost to complete the job, indirect cost should not be ignored. If Colorscope uses the direct cost analyses to make its pricing decisions, the product will be under cost, resulting in under pricing. The underpriced product, although the manager has originally thought that it could bring about increasing, will in fact lead to less revenue than the cost of resources they use. What’s more, by taking indirect costs into consideration and allocating overhead costs to the product, company can calculate a cost of each particular product depending upon the resources it consumes. In addition, full cost analysis contributes to better management. Inaccurate product costs will mislead managers about the profitability of different products. Therefore, managers might unknowingly promote unprofitable products while deemphasizing profitable products. Lastly, full absorption cost analysis helps to find unnecessary costs that should be eliminated, to manage the overhead costs that are usually fixed in the short run but are variable in the long run, and to improve product quality through better product and process design. The full cost analysis is based on the assumption that overhead costs are variable with cost object. For example, the supervision, quality control...
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...Colorscope must alter its operation sequence in order to reduce idle time during assembly. Since the company is following a sequential processing of jobs, a high idle time for assembly means that scanning is taking a significant amount of time. Colorscope may consider purchasing the technology of the next generation. Further, Colorscope must learn not to put all of its eggs in one basket: it should not allow one customer to account for more than 30% of its business. The company should attempt to retain its currently profitable clients by providing competitive pricing specialized attention to each client. Since Colorscope is not a market leader, The five departments(prep, scanning, assembly, output, and quality control) serve as appropriate overhead cost pools for Colorscope. These are the major states in the production process. Hours are not clocked in these departments in fixed proportions. In order to effectively determine the amount of overhead in each overhead cost pool, we first allocated overhead to the cost pools(the five departments), and then allocated : Before desktop publishing became popular, Colorscope possessed a competitive advantage through its expensive proprietary computer equipment that could produce complicated print special effects. Colorscope has also been able to build strong relationships with valuable customers through the years. The company has always possessed a solid reputation for providing high quality work in its field. Another reason why Colorscope...
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...University of central Punjab Project title: Unemployment in Pakistan Assigned by: Rizwan Pasha Assigned to: Ali Haider 0043 Abrar Hussain 0057 Waleed Adil 0066 MBA 1-B Definition of 'Unemployment' Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. Unemployment in Pakistan: It is a universal problem, even the most advanced & prosperous countries of the world like USA, Britain & Japan are confronted with this problem. As a matter of fact, it is impossible to provide jobs to all. Honestly speaking, this problem exists in our country in an alarming degree. It is a fact that one person out of ten is out of work in Pakistan. The problem is serious in our country because we have unemployment among all the sections of our society among the educated & uneducated, among the skilled & unskilled. It is most unfortunate that highly qualified & professional persons like doctors, engineers & teachers are without jobs. It is painful to see them wandering from door to door in search of jobs. Many of them have gone abroad and are serving the people of other countries. It is estimated that more than a million people are entering the...
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...Seyhun Shikhaliyev CASE STUDY COLORSCOPE 1. Why would any customer, let alone large advertising agencies and departmental stores, go to Colorscope rather than go to the large printers listed in Exhibit 3? The main line from the colorscope inc background are the corporate was found in march 1976, the first target customers is local customers (small agencies), and after that colorscope growth significantly that thing can be proved in 1988 sales colorscope over than USD 5 Milion and they served Big Customer, since growth they invest capital expenditure in order to improve services. In 1990 when the overall technology growth rapidly and there are more competitor than before, this situation make the condition under pressure, the first impact from this condition is price war, so the market pressure forced him to reduce his own price. After all finally in 1994 , colorscope loss signifant & long term client ( where the client omset is 80 % of his business). If colorscope want to survive in this business they must reevaluate the industry from the operation to his pricing policy. Direct Competitor 1. Larger, more technically savvy printing companies with professional salespeople pushing bundled pricing, integrating pre-press services with printing in a single package, such as R.R. Donnelley & Sons Co. and Quad Graphics. 2. Companies that competed in several different submarkets beyond catalogs, e.g. insert, comic syndications, and coupons, such as American Color and...
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...Colorscope Case Study 1. Competitive advantages of Colorscope Colorscope, which was founded in Southern California in 1976 engaging in providing the special-effects photography services to the local advertising agencies. Since the reputation has increased with the excellent sales performance in 1988, Colorscope main client was the giants in the field of entertainment and ad-agency. Therefore, compared with other competitors, the competitive advantages of Colorscope are: * Customer loyalty and business reputation. Since Colorscope has already founded for several decades it has established a fixed customer relation with the high value customers within the print and pre-press industry. For instance, as Exhibit 3 shows that some loyalty customers of Colorscope are the large national companies which ranked at top 15 in American printers, especially the Donnelly which has ranked at first in American printers with high level sales revenue. Therefore, compared with other companies, Colorscope can provide personalized service to the specific company which needs a specialized service. * Operational and training method. Under a unique training method, the employees of Colorscope grasp multitask working skills so that they can handle all works during the producing process. In addition, the operational method was significantly efficient with the appropriate work-flows and pre-press facilities before 1990, which means its productivity can be developed at a high level compared with...
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...1. Why would any customer, let alone large advertising agencies and departmental stores, go to Colorscope rather than go to the large printers listed in Exhibit 3? The main line from the colorscope inc background are the corporate was found in march 1976, the first target customers is local customers (small agencies), and after that colorscope growth significantly that thing can be proved in 1988 sales colorscope over than USD 5 Milion and they served Big Customer, since growth they invest capital expenditure in order to improve services. In 1990 when the overall technology growth rapidly and there are more competitor than before, this situation make the condition under pressure, the first impact from this condition is price war, so the market pressure forced him to reduce his own price. After all finally in 1994 , colorscope loss signifant & long term client ( where the client omset is 80 % of his business). If colorscope want to survive in this business they must reevaluate the industry from the operation to his pricing policy. Direct Competitor 1. Larger, more technically savvy printing companies with professional salespeople pushing bundled pricing, integrating pre-press services with printing in a single package, such as R.R. Donnelley & Sons Co. and Quad Graphics. 2. Companies that competed in several different submarkets beyond catalogs, e.g. insert, comic syndications, and coupons, such as American Color and Wace/Techtron. 3. Standalone firms that competed with...
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...For exclusive use IE Business School, 2014 Harvard Business School 9-197-040 Rev. February 19, 1998 Colorscope, Inc. Introduction Andrew Cha, the founder of Colorscope, Inc., a small, vibrant firm in the graphic arts industry, had seen his business change dramatically over the years. The rapid development of such technologies as desktop publishing and the World Wide Web as well as the consolidation of several major players within the industry had radically altered his company’s relative positioning on the competitive landscape. Preparing to celebrate the company’s twentieth anniversary in March 1996, Cha pondered the issues involved in moving Colorscope ahead. Company History Born in Anhui, China in 1938, Andrew Cha immigrated to the United States in 1967 to seek a better life. Originally planning to settle in New York City, where he would pursue his craft as a painter and his wife would attend New York University, his funds ran out in Los Angeles, forcing him to work as a cook and busboy in a downtown Chinese restaurant. Through fortune and hard work, however, Cha eventually found jobs that took advantage of his artistic skills in draftmanship and photography; a succession of promotions within one graphic arts company convinced him that his abilities would enable him to start his own business. Founded on March 1, 1976, Colorscope Inc. was established as a special-effects photography laboratory serving local advertising agencies in southern California...
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