Assignment 1 – Manufacturing company Johnson & Johnson
Johnson & Johnson is an American multinational company that was founded in Brunswick, New Jersey in 1886 by American entrepreneurs Robert Wood Johnson and Edward Mead Johnson. It manufactures pharmaceuticals, medical devices and consumer products. Johnson and Johnson and its subsidiaries have operations in over 60 countries and sell their products in over 175 countries. They are one of the world’s largest manufacturer of health care products and the largest developer and manufacturer of medical treatment and diagnostic devices. It is recognized for its corporate repute, strong customer base, brand loyalty and brand image. Johnson & Johnson has an excellent research and
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There are several uses of ABM that Johnson & Johnson can implement, if not already in place, to achieve a profitable outcome. Attribute analysis, which classifies and combines cost and performance data into manageable and controllable clusters. Strategic analysis, which explores various ways a company can create and sustain a competitive advantage in the market place. It emphasizes future opportunities and challenges, using a combination of both physical and financial measures to explore the impact of alternative strategic positions. Benchmarking, which identifies an activity as the standard and is used to assist managers in identifying a process or technique to increase the effectiveness or efficiency of an activity. Operational analysis, which seeks to identify, measure and improve current performance of key processes and operations within a firm. Profitability / pricing analysis, which assists a company in analyzing the costs and benefits of products and processes in both the as-is and post-improvement to-be scenarios (Horngren et al., 2009). The two most common methods of inventory costing are Last-in-first-out (LIFO), and first-in-first-out (FIFO), choosing the correct method of inventory accounting could be detrimental to the income statement and the statement of cash flow, and also it would affect the balance sheet of the company. For Johnson & Johnson, it is
Those target markets who rely on Johnson & Johnson health and medical needs are mostly patients, doctors, nurses and civilians. Therefore, the company need to sustain their products and services over all these years to ensure that lower income people and underprivileged patients are able to access on their medicines. This however requires the company to balance patient’s access and competitive dynamics in line with their need as the company need to have enough resources to keep on being innovating, creating new and better medicines and at the same time making sure there will be a fair return to the shareholder as well. Johnson & Johnson also work closely with the governments, physicians, non-government organizations and the international donors all around the world to provide its products within an affordable prices to its
Johnson & Johnson (J&J), incorporated in 1887, is one of the largest companies in the pharmaceuticals manufacture industry. The company is engaged in the research and development, manufacture and sale of a range of products in the healthcare field. The company has a well-diversified landscape operating in three major segments: consumer products, pharmaceutical and medical devices and diagnostics. The company 's corporate headquarters is located in New Jersey but has facilities in 57 countries. With over half its sales
After reading Chapter 6 of the textbook and the materials I found that I was struggling to understand the material more than usual. Before reading this chapter I had a slight idea of how much effort went into keeping track of the costs and inventory. The most that I knew was that you had to keep track of it, I didn’t know that there are different ways to keep track of those costs. After reading more into the different ways to keep track of inventory I found that the one that stuck out most to me and was the one that I spent the most time trying to understand was the LIFO (Last In First Out).
45. (LO1) ATW corporation currently uses the FIFO method of accounting for its inventory for book and tax
There are four accepted inventory methods: Specific Unit Cost, Average Cost, FIFO, and LIFO. Unique inventory items are recorded in inventory by the cost of that unit or specific unit cost. Non-unique items use one of the other 3 methods. The average-cost method is: average cost = cost of goods available / number of units available. The first-in, first-out (FIFO) method assigns the first costs into inventory to the first cost of goods sold. The last-in, first-out (LIFO) method assigns the last costs into inventory to the first cost of goods sold. Since inventory costs can vary, companies may choose an inventory method based on tax advantages. When prices are falling, FIFO will have the lowest taxable income. When prices are rising, LIFO has the lowest taxable
The second types of inventory methods to value its inventory that CVS uses is the most common one used for most business the First-In, First-Out (FIFO). First-In, First-Out (FIFO) is defined as the first inventories bought are the first ones to be sold. CVS only uses FIFO for Some Retail Pharmacy and Rest of Business (Front store). CVS utilizes this method because; the fresher products have to be out the door first. Also, FIFO is an easier method than Weighted Average Cost. And most importantly it may over inflate cost because the last products bought and out the door first are usually the most expensive products.
Last-In, First-Out is figured out by calculating the total amount of goods sold and removing them from the inventory at the cost of the last purchase made. In other words, the oldest products will be counted as inventory while the newest will be expensed.
The Last in first out (LIFO) liquidation Inventory valuation method was changed as Inventory level in1984, 1983 and 1984 was decreased by Harnischfeger. By adopting this process, inventory that was purchased at lower cost in previous years was sold at higher prices.
The company of my choice is Hubs Machine & Manufacturing, Inc, according to their company website, Hubs Machine & Manufacturing, Inc. is located in Cedar Hill, Missouri, it is a manufacturing company that not only designs, but also distributes Close Tolerance Industrial Survey Targeting and accessories. Among the items they manufacture are Laser Trackers, Photogrammetry, Theodolite and other Coordinate Measurement systems, and the design of custom targeting and fixtures.
Although inventory is an asset it is recorded as a cost, anything recorded otherwise would be unethical and would be hard to report the cost of goods sold once inventory has been depleted.
Wriston’s Detroit plant is no longer a viable operation due to long-term capital underinvestment and product-process mismatch. It is recommended that the plant be phased out of operations over a five-year period with production and staff gradually shifted to a new plant to be built in the Detroit area. Further, it is also recommended that division accounting procedures and evaluation mechanisms be modified to allocate revenues/costs allowing for the synergistic benefits of Detroit’s products, and to recognize inherent manufacturing complexities, respectively. Issues Detroit’s production is unique when compared to other Wriston plants. Runs are typically lowvolume, involve significant set-up time, and vary significantly due to the sheer
Johnson & Johnson is a global American health care manufacturer founded in 1886. The Family of Companies – as they call themselves – consists of more than 250 operating companies in 60 countries employing about 118,000 people worldwide. (J&J)
Q1. Based on the 2004 statement of profit and loss data, do you agree with Water’s decision to keep product 103?
Today one of the largest health care companies in the world is Johnson & Johnson. They now have over 128,000 employees and more than 250 operational subsidiaries located in 60 countries around the world. Johnson & Johnson has more than $132.6 billion in total assets. Johnson & Johnson’s headquarters, however, is still located in New Brunswick, New Jersey. Johnson & Johnson research, develop, manufacture, as well as sell health care products all over the world. (Johnson & Johnson)
Unlike IFRS, inventories are measured at the lower of cost and market. Under US GAAP FIFO (first in first out) method is allowed. Also, inventory is written down to market when net market is less than the cost, in difference with IFRS that states that it should be