California Cream Case

Full work monetary value Full point of intersectionion cost (per gal) of Polynesian envisage and Vanilla a. Old be regularity: Polynesian Fantasy 2.00+1.20+(1.20*2)=$5.6/per gallon Vanilla 1.80+1.20+(1.20*2)=$5.4/per gallon b. immature be system: PolynesianFantasy 2.00+1.20+(18,000/286)/ nose candy+95,000/1,846*3/ degree centigrade+(80,000/909)/50+122,000/ coulomb0*0.6/ degree Celsius+175,000/1,936*1.0/100+110,000/1,100*0.3/100=$9.06/per gallon Vanilla 1.80+1.20+(18,000/286)/2,500+95,000/1,846*3/2,500+(80,000/909)/1,000+122,000/1000*0.3/100+175,000/1,936*1.0/100+110,000/1,100*0.2/100=$4.65/per gallon Effect on unmarried product cost and thorough connection profits There atomic number 18 obviously differences among two costing rules. The new costing system makes separately cost much accuracy. The comparison of overhead be for Polynesian Fantasy and Vanilla by the two costing regularitys is: Polynesian Fantasy Vanilla Old Costing method 5.6 5.4 New Costing method 9.06 4.65 Change (New-Old) 3.46 (0.75) There wint be any change on total company profits.

But it give be some differences on individual product between applying two methods. What should Will do The new method (Activity-Based Costing) attempts to provide a better modeling of the cost of producing products or providing services and delivering them to customers. It promises to depict costs more accurately by means of a deeper understanding both(prenominal) of the activ! ities involved and the resources consumed by individually of these activities. Will should use Activity-Based Costing. Although this method will not affix total company profit, it will help him analysis concern on individual products and emend the manufacturing process in install to increase the company profitability. S.W.O.T. for CCI Strengths: atomic number 20 Creamery, Inc (CCI) provides highest-quality, ultra-premium ice cream. They offered 25 polar ice cream flavors. The exotic flavors...If you want to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay