California Cream Case

Full performance monetary value Full increaseion cost (per congius) 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/ ascorbic acid0*0.6/ carbon+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 supply connection profits There argon obviously differences among two costing modes. The new costing regularity makes separately cost more(prenominal) accuracy. The comparison of overhead be for Polynesian Fantasy and Vanilla by the two costing manners is: Pol ynesian 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 will 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 sit around 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 some(prenominal) of the activities invo lved and the resources consumed by individu! ally 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 meliorate the manufacturing process in install to increase the company profitability. S.W.O.T. for CCI Strengths: calcium Creamery, Inc (CCI) provides highest-quality, ultra-premium ice cream. They offered 25 polar ice cream flavors. The foreign flavors...If you want to get a full essay, order it on our website: OrderEssay.net

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