Allied Office Products Case Solution

Case Solution

Cooperated business things' is attaching in order to advance product things to its customers their organizations on worth included organizations maxim. Starting now, it has a traditional maintenance costing system which relegates costs to all customers in perspective of an overhead rate, disregarding the development of customers. 'Joined forces office things' is considering exhibiting SBP esteeming structure. In perspective of the examination, it is found that Allied should solidify this system in the business as it will give them key information on their customers. The examination showed that 'customer An' is less reliable; then again, it is likewise profitable to the association. It is in like manner endorsed that Allied should execute 'without a minute to extra' stock organization.

Excel Calculations

Distribution Services Costs

·         Overhead Allocation                           

·         Activity Based Cost Analysis                          

·         Total Cost for Customer A                              

·         Total Cost for Customer B                              

·         Distribution Services Costs                             

ABC Based Service Costs

·         Cost of Value added Activities           

·         Storage Charge

·         Requisition Handling Charge  

·         Basic Warehouse Stock Selection       

·         Data Entry Charges     

·         Charge for “pick-pack” Activity         

·         Charge for Desk Top Delivery  

Questions Covered

1.      Using the information in the text and in Exhibit 2, calculate "ABC" based services costs for the TFC business.

2.      Should TFC implement the SBP pricing system?

3.      What managerial advice do you have for allied about the Total Forms Control (TFC) business? How does Exhibit 6 relate to this question?