Allied Office Product Case Study

Allied Office Product Case Study

Question 1

Activity Based Service Cost for the TFC business Activity | Total Activity Cost ('000) | Activity Driver | Usage | Actual Cost | Storage | $ 1,550 | Number of Cartons | 350,000 | $ 4.43 | Requisition Handling | $ 1,801 | Number of Requisition | 310,000 | $ 5.81 | Basic Warehouse stock selection | $ 761 | Number of Requisition × 2.5 lines | 775,000 | $ 0.98 | "Pick–pack" activity | $ 734 | (Number of Requisition × 2.5) 90% | 697,500 | $ 1.05 | Data Entry | $ 612 | Number of Requisition × 2.5 lines | 775,000 | $ ... Show more content on Helpwriting.net ...The ABC system will help management analyse the profitability of each customer and restore the profitability of the company. Allied needs to offer benefits such as modified compensation plan focused on growing customer revenue and profitability to help encourage sales behaviour. TFC is able to significantly improve profits by concentrating on individual account management which SBP is capable of by identifying service costs and calculate the contribution for each account and then rank the accounts according to profitable ones. TFC should charge its customers based on their service usage by using cost plus pricing. The customers would be charged based on the cost of product plus service charge based on SBP systems plus a mark–up so that it will be fair to customers that have the same sales but different level of service.

Question 5

Allied value chain process starts from the natural resources which is turned in to raw materials such as papers and then manufacture produce a standard computer printout paper and fax paper to custom–designed forms tailored to meet the demand of the client. From here on, the product is moved to sales. The business is expanded by making warehouse and distribution network. Allied build TFC to facilitate customers that have problems with inventory. TFC service has its own value chain which starts from storage and inventory financing, requisitioning, stock selection and pick–pack, order

... Get more on HelpWriting.net ...