The existing costing system, also known as conventional costing system, which costs are allocated to one single cost driver. It may cause inappropriate cost allocation. The recommended costing system is activity-based costing (ABC) system. An ABC system, which activities associated with production are determined, and costs are allocated to products based on individual products ' consumption or demand for each activity. Using ABC system, it involves higher cost and complex steps than using the traditional costing system. The limitations of inappropriate cost allocation will lead to overcosted and undercosted a product which will significantly affect the profitability of the company.
From this report, it is recommended Cambden Cakes using ABC system instead traditional system to improve cost utilization and maximise the profitability of the company.
A refined costing system can reduce the use of board average for assigning the cost of resources to cost objects and provide better measurement of the cost of indirect resources used by different cost objects. There are three principal reasons for the demand for refinements to the costing system are increase in product diversity, increase in indirect costs and competition in product markets.
Cambden Cakes is a private company which manufactures and distributes a variety of cakes and pastry products to superm...
... middle of paper ...
...different cost category. It only recognises the amount of produced as the only driver.
However, the other resource drivers also play an indispensable role in the manufacture process. As a result, the consequences of running current costing system to Cambden Cakes are inaccurate price of products, incorrect decision about products’ volumes, and unreasonable wages for employees. As the name, ABC system, suggests activity based on costing is a system, which focuses on activities on the basis of cost objects and uses the costs of these activities as building blocks for compiling the costs of other cost objects.
In a nutshell, the use of an activity based on costing system can help Cambden Cakes to develop a way to analyse and justify manufacturing cycle-time improvements and increase the efficiency in the production and ultimately boost its revenue in effective way.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Joe Sparks and Vergile Tea Cakes: Comparism and Contrast. All over the world, marriage is one of the main things that define a woman’s life. In fact, for women, marriage goes a long way to determine much in their lives including happiness, overall quality of life whether or not they are able to set and achieve their life goals. Some women go into marriages that allow them to follow the paths they have chosen and achieve their goals while for other women, marriage could mean the end of their life goals.... [tags: Marriage, Wife, Domestic violence, Cakes]
1033 words (3 pages)
- Joe Sparks and Vergil Tea Cakes: Comparism and Contrast. All over the world, marriage is one of the main things that define a woman’s life. In fact, for women, marriage goes a long way to determine much in their lives, including happiness, overall quality of life, whether or not they are able to set and achieve their life goals. Some women go into marriages that allow them to follow the paths they have chosen and achieve their goals while for other women, marriage could mean the end of their life goals.... [tags: Marriage, Wife, Domestic violence, Cakes]
1030 words (2.9 pages)
- See what I did there. Although I may have borrowed Shaw’s title, this essay will (arguably) have a bit more romance than the Pygmalion, but that is an entirely different essay. Growing up I have always been surrounded by every aspect of food imaginable. My mother owns a catering business and has been cooking all of her life (and I would like to think I picked up a skill or two along the way). One thing is for sure though; I have grown to appreciate many different aspects of food. Naturally, being a sugar crazed adolescent, one of my favorite dishes were her specialty cakes.... [tags: Value, History, Properties]
1096 words (3.1 pages)
- Internship Report Format 1. Title Page One original title page, prepared in the same format as the Sample Internship title is given at the end. Page submitted with the original signatures of Program coordinator. The date on the title page will depend on the semester you will receive your degree. 2. Acknowledgements If you wish, you may include a page with a brief note of dedication or acknowledgment of help received from particular persons. 3. Table of Contents The contents page should clearly and accurately index the page numbers of the various sections of the dissertation.... [tags: Internship Report]
1200 words (3.4 pages)
- Employee Privacy Report 1 In this report, I will be addressing e-mail, Internet use, and privacy policies in my workplace; the current laws regulating employee e-mail and Internet privacy; the reasons to companies carry out e-mail and Internet use policies; the assumptions employees make about their privacy at work; and how these policies affect employee privacy at work. E-Mail and Internet Use , Privacy Policies The E-mail/Internet usage and privacy policies at my job are part of a system of written decisions established by the organization to support and to build a desire culture through managing risk, regulation, and administration.... [tags: Privacy Report]
986 words (2.8 pages)
- Problem Gambling Service Coordination Demonstration Project Report 25 June 2010 Contents Project Background 3 Project Methodology and Outcomes 4 Project Deliverables 5 Project Report: Integrating Service Coordination & Problem Gambling Treatment 7 Recommended Actions 8 Appendices 9 Project Background The project is an initiative of the Victorian Government’s Taking Action on Problem Gambling Strategy (2006 – 2011) developed to enhance problem gambling treatment and the responsiveness of the problem gambling service system.... [tags: Project Report]
1526 words (4.4 pages)
- FINDINGS: Severe right-sided chest pain. The __ reported a friction rub. A PM lateral showed questionable mediastinal adenopathy. The patient had no cough or sputum production of ___. CT scan in ___ showed a possibility of a 1x2 cm right paratrachial lymphnode. Several smaller anteromediastinal lymphnodes which were all less than 1 cm were also evaluated. The patient was treated with Indocen with relief of her chest pain. ___ level was 64.5 with a ___ 50. PPD was negative, controls were positive.... [tags: Medical Report]
616 words (1.8 pages)
- How To Write A Great Report 1. Plan the report. Select an idea or topic for your report. Gather information for your report. Identify the information you want to include in your report. Remember you should have at least three ways to support the main idea of your report. Include details and specific information that will help you make your point. Write a draft. Review what you have written. Try reading the report out loud. It can help you catch mistakes. Check spelling and punctuation.... [tags: Report Writing]
176 words (0.5 pages)
- Confidential The names in this Observation Report have been changed to protect the privacy of the parents and the child. Student’s Name : Calvin Sex : Male Place of Observation : Inside the classroom of County Preschool. Time of Observation : In the morning, 10.30 a.m. and it was a sunny day. General View : • The classroom was pretty well organized ( clean, tidy and many facilities inside such as books, games, a computer and so on ) • It was a pretty large group in the class, 13 children were there and the teacher was present as well.... [tags: Direct Observation Report 2014]
1000 words (2.9 pages)
- I observed an upper level biology class, in which the teacher is applying a combination of collaborative (team-based) learning, problem-solving approaches, discussions on "what-if" scenarios and student-teaching. Below you will find a general overview of the class, a crude analysis of reasons for various successes and problems, and finally a more detailed analysis of things to address in this particular class. Overview The class atmosphere was congenial and the students were actively engaged in discussion.... [tags: Teacher Observation Report 2014]
1500 words (4.3 pages)
- Is It A Serious Problem?
- William Shakespeare 's Romeo And Juliet
- The Civil Rights Movement Vs. Women 's Rights
- The Immigration System And Racism Over Time Have Destroyed The American Dream Of Freedom And Liberty
- Racial Profiling Of African Americans
- Why I Have Not Been Before And Take Me Out Of My Comfort Zone