Dakota Office Products Case Study ID4373744
Background NAME: MEIXIA GAO Dakota Office Product (DOP) is a reputational merchandiser that is expertized in regionally distributing stationary supplies ranging from traditional office supplies to specialty copy paper. By using a typical business model, DOP ships the items from manufacturers and unloaded in its distribution centre. Based on daily orders from commercial business and institutions, those storages are delivered to customers by cartoons. In order to attract more new businesses, DOP adds “Desktop” delivery service to providing package delivery service to individual customers. Later on in 1999, electronic data interchange (EDI) was introduced to the market, which allows customers make quick online order. Despite few customers has switched to this new service, DOP is still bearing an increasing cost and first loss in its historical record in 2000 financial year.
Problem and issue From the statistics shown in DOP income statement 2000 (Exhibit 1), we can see that the total fixed cost including warehouse expense, freight, delivery truck expense etc exceeds the gross margin, which directly results in -1.3% loss in its historical record. There are several issues below which directly result in DOP’s financial loss:
1) The old pricing system is not reliable for new business model
2) New product mixed strategy
The winds of change brings about new and while fading the old away. This is true with life and it was also true for Tom Lippert, a sale representative for Dupont Engineering Polymers (DEP). DEP is faced with change as their long time GARD contact, Mike O’Leary turns over his responsibilities with his predecessor, Richard Binish. Richard trust the relationship that Mike has developed with DEP over the years however, he plans to verify DEP’s performance to his own standard.
NCB is a manufacturer and distributer of a wide range of office products. In Canada, NCB uses several distributers in different regions. One of the major distributers is Harrison Stationary and Office Supply LTD. Harrison had distributed NCB’S products for over 50 years and NCB was the largest supplier of Harrison. In January 2003 Harrison was acquired by the president of the company and four senior officers. Most of the acquisition cost was financed by bank loans. Since the acquisition, Harrison had difficulties to pay NCB for the goods and the account receivable reached to unacceptable level. In September 2005 the Harrison account was 156 days old and amounted to $ 4.4 million. In
Develop an activity-base cost system for Dakota Office Products based on Year 200 data. Calculate the activity cost-driver rate for each DOP activity in 2000.
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It is evident in the Dakota Office Products case that there is a wide variety of product created by Dakota that is shipped to their customers. That, paired with the fact that there are high overhead costs related to the desktop delivery option, also tells the reader that an incorrect accounting system is currently being used. One needs only to look at the profitability difference between Customer A & B. Currently, there is no difference in the way that the size of orders are priced. In their current system, only the larger orders create a profit for the customer.
Dakota Office Products current pricing system is inadequate for its current operating environment. Dakota Office Products is a regional distributor of office products to
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1. Is it unethical for a company to intentionally understate its earnings? Why or why not?
2. Mean service time = travel time + repair time = 1 + 1.5 = 2.5 hours
I decided to choose ABYAT Furniture Company for my Assignment . In this paper, I am going to talk about ABYAT's history, structure and what services that they provide. Moreover, I am going to talk about achieving the six strategic, In addition, I am going to know about the threats type in ABYAT Company, also I will mention how supporting these levels through information Systems, how managers can affect build and use information systems the success of their company and how achieve operational excellence in terms of customer relationship management.