Overhead Case Studies Samples For Students

Abstract

Steven Dewayne Bond was a passenger on a Greyhound bus when a border patrol officer squeezed his luggage after conducted an immigration check of the passengers. Bond allowed the officer to open his luggage when asked, and a brick of methamphetamine was discovered that was wrapped in duct tape and rolled in a pair of pants. Bond was charged with possession and intent to distribute as well as conspiracy. In pretrial matters, Bond’s attorney filed a motion to suppress the methamphetamine claiming that the search conducted by the officer was unreasonable and in violation of the Fourth Amendment. ...

Statement of the Problem

Destin Bras Products Co. (Destin) is a company engaged in the manufacture of valves, pumps and flow controllers. Destin is a highly competitive company, having at its helm Steve Abbott, John Scott and Roland Guidry and is a local success story in Destin, Florida.

Recently, Destin has come under fire by way of significantly shrinking gross margins due to price pressure from competition. The production of valves has contributed about 24% of the company’s revenues and has comfortably retained a 35% gross margin. Pumps, which contribute 55% of total revenue, have been under siege recently because of similar pumps in the market ...

Statement of the Problem: Shelby Shelves which produces two varied shelves meant to be used in the grocery stores is concerned about changing its next month’s production plan. The two different shelves produced are S and LX. Shelby Shelves is a small time company which due to the fierce competition that is prevalent in the market needs to think twice before offering its product at a costlier price. The company by revising its production plan for next month wants to augment its profit volumes. Since, pricing the products at a higher range is not an option for the company, Shelby Shelves ...

(Financial) Management Accounting Case Study
Every single organization of the world is now trying to flourish their growth comparatively better than that of their competitors (Bradtke, p.45). The thing that really matters for them to have the same comparative growth potential is the management of operational cost. Operational Cost, though a common thing for an organization, but emerged as a real gangrene if the proportion of the same would be on a higher node (Cokins, p.34).
Cost-Volume Benefits always bring positivity in the functions of the company, as it has the ability to manage the operational cost in such a manner ...

Part 1

Milton manufacturing is facing a number of issues that include:
Inaccurate costing of tables and chairs, there is an equal allocation of overheads to chairs and tables resulting in the chairs being allocated more than a fair share of the overheads while the tables under absorb overheads.
Resistance to change, Mr. Smith is reluctant to change the costing techniques arguing that they have traditionally allocated overheads to tables and chairs equally.
The organization has a closed climate where employees are not able to freely communicate. For instance, Mr. Smith tends to dominate the meeting and members are afraid of ...

- You are required to evaluate, the two options for the production of product Z.

Comment and advise Tony accordingly in the production of product Z.(25 marks)

Answer:
Assuming 40,000 production levels, the cost associated with both the options are as below:
It can be easily seen that the cost of producing 40,000 units is less in case of labor intensive option than the machinery option. For low production levels, it is recommended that labor intensive option is a better option.
However, as the production level goes up, machinery option covers up for the extra machine rental expense and at some level produces units at a lower cost ...

Statement of the problem

Shelby shelving is a small company that manufactures shelves for grocery stores. The company has two models of shelves that it manufactures: model S and model LX. The process of manufacturing involves stamping, forming, and assembly. Each of these processes has a cost in form of labor hours and material costs. For example model S requires 0.25 hrs on the forming machine and the stamping machines operates for only 800 hrs a month. The production of model PX has a monthly capacity of 1400 units and model S has a monthly capacity of 400 units of model. The industry has a lot of competition and ...

Strength

The government has played a very fundament role in ensuring the insurances owners buys the liability insurance hence pushing for a gross income of $20,000 per capita. The organization also gets the government support in the sense that the Korean government has the duty of regulating the financial industry. It thus means that all market participants are bonded by certain guideline and policies. Presents of the five teams have increased the overhead cost but it has significantly been advantageous to the organization especially in the provision of quality services and the general operations for both the headquarters and the entire ...

The Korea Auto Insurance Co Inc. case study presents an illuminating and interestingly scenario on how cost allocation plays a role towards the overall assessment of the branch performance. Ideally, the contest in the case study relates to the use of the traditional cost allocation method which is pegged on the revenue amounts against the currently popular activity based cost allocation which considers unique cost drivers for unique situations. This paper seeks to discuss the contest in the context of the Taejon Branch under the able leadership of Jin Kim. The paper shall employ the SWOT analysis approach in the ...

GPS-to-GO Takes On Garmin Case Analysis

Central Problem
The case study highlights the challenges faced by GPS-to-Go, a Global GPS’s subsidiary when venturing into consumer GPS market. GPS-to-Go had already succeeded in creating complex GPS systems for air traffic and logistic. The company’s management led by Michael Scott now wanted it to venture into the consumer GPS market by developing new products including GO I GPS, GO II GPS, and GO III GPS. The management was optimistic that the company could outdo the well-established competitors in this market due to a vast portfolio of patents from Global GPS, its parent company. Nonetheless, the ...

Keeping the body healthy and in shape is probably the big aim of everyone. However, all of those desires differ a lot on the gender, age and motivation basis. This assignment will demonstrate the analysis of two case studies. For both of them some recommendations and calculations will be given.

Anyways, some calculations are needed in order to get the entire picture of his body condition.

Secondly, Chad’s BMR is 1865.04
Finally, it is essential to implement the Karvonen formula in order to find out Chad’s target heart rate at 60% and 80%.
The answer looks as follows: Target HR (60%) = 131
Target HR (80%) = 148
At this point of time it is ...

1. Explain the main differences between absorption and contribution income statements. Will net income always be the same under the two approaches? If not, explain the difference.

An absorption costing income statement is created for stakeholders apart from the company’s own employees and internal management. This method ensures that all overhead costs are included in the inventory of the company. In other words, all costs that are directly linked to manufacturing including; labor and material are added to the inventory. Consequently, the cost of manufacturing is transferred from the inventory costs to ...

Statement of the Problem

1. Mueller-Lehmkuhl GmbH (MLG) is a major producer of apparel fasteners. It has a market share of 17% and competes in an industry whose growth is projected to be just 1% every year.
2. MLG’s business model is to produce fasteners for the apparel industry and to support the sales by forming close relationships with its clients. To do so, it offers the sale or rental of attaching machines, free-of-charge maintenance, and has developed an over-all R&D, general management and distribution network to maintain its hold on the market.
3. MLG is currently threatened by a new player ...

Statement of the Problem

1. Destin Bras Products Co. (Destin) founded by Steve Abbott, John Scott and Roland Guidry and is a local success story in Destin, Florida and is in the business of producing valves, pumps and flow controllers.
2. Destin is facing stiff competition. Currently Destin’s revenues come from valves (24%) earning the company a 35% gross margin, pumps (55%) which has been observed to be weakening to a gross margin of only 22% and flow controllers (21%) even after increasing prices by 12.5% have not been attacked by competitors. With no technical patents or other advantages, Destin has no idea how ...

Statement of the Problem

What steps should Destin Bras Products Co. (Destin) take to address the current loss in market share due to a sharp decline in the price of competitors? How could Destin remain profitable in all of its market segments?
This is the question that the management of Destin, a local producer of valves, pumps and flow controllers is asking. What do the competitors know or how are they doing their business such that they remain profitable despite a significantly lower selling price. Destin is very competitive despite not having any design advantages, nor would any competitor so technical superiority is out of ...

Statement of the Problem (1 page)

Mueller-Lehmkuhl GmbH (MLG) is a German producer of apparel fasteners. In 1982, it formed a joint venture with the German subsidiary of the Atlas group, an American multinational for the purpose of benefiting from MLG’s technological superiority and access to other markets through the Atlas subsidiary. However, the effect of the joint venture essentially was the limiting of MLG’s markets to Europe and Africa.
MLG is one of the major competitors in the very mature European market for apparel fasteners. Its market share is currently 17% (although three other firms have about the same market share), taking a slightly ...

The business organization under analysis in this case is Mueller-Lemhmkuhl that is involved in production and sale of apparel fasteners and it is located in Germany, Europe. The company has operations on the international front though it is faced with multiple challenges that inhibit is profitability and market dominance. The cost accounting model used has flaws and impinges on pricing of fasteners leading to reduced earnings due to intense competition from rivals. The President of the company, Dr. Richard Welkers attested that HI, a Japanese firm poses a great challenge to Mueller- Lemhmkuhl due to their price wars, as they price ...

Statement of the Problem

Ajax Manufacturing Company (Ajax) is a company engaged in the manufacturing of industrial products (herein referred to as Products A, B and C).

Ajax wishes to maintain an average gross margin of 35% across all its products by employing a traditional cost accounting method. This method adds the unit cost of raw materials, unit cost of labor, unit overhead costs computed by summing all overhead costs and then dividing by allocated labor hour use, and a 35% gross margin. This approach has earned the company varied results such that it has been able to sell 10,000 units of Product A at a ...

The current paper examines the issues of strategic management accounting including stages of strategic management process, the roles of management accounting, concept of opportunity costs, concept of relevant and irrelevant costs, cost classification and practical application of breakeven analysis. Besides, it contains examples illustrating some of the above listed concepts. The claims are supported with relevant arguments; the examples reflect the issues associated with running business in contemporary market environment. Each task is divided into sections related to different parts of each question. Each part of the question contains appropriate conclusions.

Main Stages of Strategic Management Process

According to ...

General explanation of the procedure followed

Contribution refers to the excess the unit selling price of a product over the direct costs of production related with the production of the said product. This accounting procedure is based on the assumption that fixed costs are incurred on timely basis (fixed costs are fixed for a certain duration of time) Hence, the fixed costs are considered irrelevant in decision making regarding the production of the said product.
Contribution per unit is thus defined as ‘the revenue generated to cover certain fixed costs, as well as cater for the profit margin of the trader. It is prudent for a manufacturer ...

Statement of the Problem

Mueller-Lehmkuhl GmbH (MLG) is one of the four major suppliers of apparel fasteners in Europe. It currently holds the top position, having a 17% share of the whole market but is closely followed by major competitors having almost the same market share. As such, the mature market for apparel fasteners works under an almost-oligopolistic system wherein there are a lot of buyers and a few sellers. Coupled with long-standing relationships with these clients acting as a barrier to entry, future participants would find competing in this market very difficult.

The surprise entry of Hiroto Industries (HI) not only threatens the business of MGL, ...

Statement of Problem

The business organization whose analysis is presented in this case is Destin Brass Products Company that is involved in the production and sale of pumps. It is noticeable that there is stiff competition from the organization’s rivals who have been continually reducing prices on pumps therefore affecting the profitability of Destin Brass Products, as affirmed by Roland Giuidry, the President of the company. The organization does not have any unique design advantage as compared to its competitors in the industry and has forced the organization to also cut price so as to compete effectively with them (Crosson & ...

Total purchasing price

The reason of choice. The point of using money is an exchanging the money for something. Money is important for any company. If a correct investment will be made, money can return twice as their size or even more.
Mark. At first it might look like Atomic Products (AP) price is less than one that Nuclear Vessels (NV) offer ($1,232,000 against $1,560,001). However, we should take a closer look to estimated shop rate, shop overhead and material cost. AP's estimated shop rate is much higher than NV's ($24/hour against $16/hour). It means that if AP's ...

Allocating Fixed costs

Fixed can be described as those costs the form or organization incurs whether or not it is producing any goods or services in the current period. In simple terms, costs that do not decrease or increase with change in production. They are only affected by structural changes or changes in the rate of inflation (BPP, 2013). Fixed costs are only variable in the long run but constant in the short run hence their name fixed costs. Allocation of cost can be said as the process of aggregating, identifying costs and allocating cost to cost entities. Hence, allocation of fixed ...

Julie Bornstein, the senior vice-president of Sephora Direct group is in charge of all direct marketing for the products of Sephora group as well as the digital marketing initiatives. She is seeking additional funding so as to double the budget used in social media in the company for effective marketing. So as to determine whether additional funding for social media is viable for enhancing sales of the firm, it is imperative to explore the background of the company so as to explore whether such funding is necessary.
Sephora Company was started in the year 1969 and entered the ...

The Impact of 9/11 on Global Logistics

Q1. Is a security oriented culture applied to the supply chain just good business? Explain!
- Before making assumptions whether security-oriented culture in logistics is just to maintain good business, it is important to understand what security-oriented culture is about. It is the application of procedures, policies and technology to protect assets within the supply chain from eminent threats (Closs et al., 2002). Given the description of security and the culture it implies, its application to supply chain is just good business. It is because security is part of process strategy that involves implementation of effective security measures for ...

Differences between managerial accounting and financial accounting

Financial accounting is mandatory since some external parties like tax authorities’ creditors and shareholders’ require such periodic statements, while managerial accounting, is not mandatory. Managerial accounting reports are prepared for use by managers while financial accounting reports are made for external parties. The former must be prepared according to the GAAP standards, while in managerial accounting some provisions are ignored. Though the two procedures use the same data, the relevance is different; financial accounting data are verifiable and objective and used when to solve situations at hand (Tulsian, 2002). On the other hand, managerial accounting data is flexible and ...

1. Introduction
The purpose of this report is to evaluate the 1958 marketing plan proposed by Fred McNicholas, owner of the McNicholas Automobile Sales Company, which he hoped would:
a) Better utilize the time of his team of new car salesmen, and
b) Focus more on selling to women, which he felt would pay dividends in increased new car sales.
This report evaluates the McNicholas Marketing Plan as outlined and provides a view on its viability and practicality, including my recommendations on whether it should be put into practice and my conclusions as the final section of this ...

Statement of the Problem: Shelby Shelves is a small company that produces two different types of shelves namely S and LX for grocery stores. Though the company is making profits with its production mix of these two models which is (S = 400 & LX = 1400), the company is not able to meet the expenses of production costs of Product S from the revenue generated from Product S. The company is selling Product S at $1800 whereas the cost of producing each unit of Product S is $1839.

Executive Summary: Shelby Shelving case’s main aim is to maximize the profit ...

Outsourcing decision

Outsourcing can be defined as a process of contracting a third party for a specific period of time to perform a given task, operation or job.
Companies opting for outsourcing services should carefully conduct a thorough feasibility study to determine its cost effectiveness.

Outsourcing has advantages and disadvantages as well. The IT manager should evaluate each advantage and disadvantage to determine the degree of effect to the company. If advantages outweigh disadvantages then it will be beneficial to outsource services, otherwise the company will make losses in case disadvantages outweigh advantages.

The reasons why managers prefer to outsource services include:

Shortage or lack ...