1.1 Background of Delphis Ltd
? Rapid growing company with growing gross sales and expanding customer acceptance in the beach and surf erupt clothing
? Target market of 18- 30 years old
? Sales atomic number 18 made on tie internationally and locally as well as franchised outlet
? Positioning to enter Ski wear market
? Current wordy recovery of US and European market
1.2 Company Objectives
? Keep speak to low and sale price competitive and defy a profit
? Produce Ski wear while maintaining the competitive determine of swim and surf wear without affecting the shareholder repute aversely
? Improve the accuracy of the existing of their products.
2. Traditional Activity found Costing vs Activity Based Costing
2.2 Traditional Based Costing
? Andrade at al (1999, 176),reasons why traditional cost methods were adequate
o The constituent of total product cost due to the direct cost comp unrivalednt was substantially larger than the indirect cost component
o The indirect cost component was[is] inherently more dear(predicate) to determine than the direct cost component.
As the result it cogitate that traditional costing was considered satisfactory for general purposes.
? The traditional costing uses one cost driver across production line and all production cost is lumped together in one overhead cost pool.
2.2 Activity Based Costing
? Activity base costing was designed for several important purposes.
o permit manager about cost information that help them to make strategic decision. An appreciation for the potential benefits of an first rudiment system whitethorn suggest to the marketing manager that a change to an ABC system will be desirable. (Dickinson and Lere 2003, 301),
o essential to helper pricing decision and product mix decision.
? Manufacturing overhead is attributed to the unhomogeneous significant activities that need to be performed for the...If you want to get a full essay, order it on our website: Ordercustompaper.com
If you want to get a full essay, wisit our page: write my paper
No comments:
Post a Comment