Viaks Case Study Pricing

Glaser Health Products manufactures medical items for the health care industry. Production involves machining, assembly and painting. Finished units are then packed and shipped. The financial controller is interested to introduce an activity-based costing (ABC) system to allocate (or distribute) indirect costs to products. Indirect costs, as distinct from direct costs, cannot be unambiguously linked to specific products. The controller would like to calculate product costs based on ABC for planning and control, not inventory valuation.

Assuming no other gifts have been previously made, Ann and Bob can use the unified credit toward part of their gift. Ann and Bob can combine their exclusion and give each donee $28M each year. If Ann and Bob give any amount to one individual over $28M in one year, as the donnee, Ann and Bob will be required to file a federal gift tax return. The excess above the annual exclusion results in the donee incurring the gift tax and offsets the life exclusion of $5.34M per donee. If they give each child and grandchild $1MM, that equals $22MM in gifts. Regardless of whether or not Ann and Bob split the gift, they have exceeded the exemption equivalent of $5.43MM per donee. Therefore, the tentative tax is $345,800 plus 40% of the excess over $1MM.

The commercial, The Real Cost, starts off with the teacher dissecting what he thought was a dead creature. The teacher goes on to explain that the creature he is dissecting contained a multitude of chemicals that can cause several health issues. The teacher then turns his back away from the creature, and as he does so the creature begins to gain its life back. The students begin to panic as the teacher has no knowledge of what is going on behind him. As the students scream in fear, the creature jumps from the table onto the floor, and climbs into a cigarette box. The commercial then ends with an image of the creature inside the pack and the statement, “ if cigarettes looked as dangerous as they are, you’d run like hell, find out the cost of

1. What is the competitive situation faced by Wilkerson? The critical product in term of market competition is the pumps of Wilkerson Company. The pumps are Wilkersons major product line with a production of about 12,500 units per month. Pumps currently have the lowest gross margin among all products, because competitors had been reducing prices on pumps and Wilkerson adopted its prices in order to remain competitive and to maintain the volume. 2. Given some apparent problems with Wilkersons cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense? Our conclusion is, that they should not adopt

1. What is the competitive situation faced by Wilkerson? The critical product in term of market competition is the pumps of Wilkerson Company. The pumps are Wilkersons major product line with a production of about 12,500 units per month. Pumps currently have the lowest gross margin among all products, because competitors had been reducing prices on pumps and Wilkerson adopted its prices in order to remain competitive and to maintain the volume. 2. Given some apparent problems with Wilkersons cost system, should executives abandon overhead assignment to products entirely by adopting a contribution margin approach in which manufacturing overhead is treated as a period expense? Our conclusion is, that they should not adopt a

The primary goal of a firm is to maximize profits. This implies, of course, that each decision a manager makes is consistent with that goal. Although managers are expected to rely on internally-produced reports, such as balance sheets and income statements, to help them make decisions, most of the information that appears on these statements is period-based rather than decision-based. A balance sheet shows the sum total of a firm’s assets and liabilities at a given point in time. If the firm sold off all of its assets at book value and used the proceeds to pay its liabilities, what remains is owner’s equity: the amount that is owed to shareholders. An income statement is the difference

The implementation of Maximo through SOARD will impact hundreds of medical centers and thousands of staff. This software will affect essential processes to asset management, purchasing, maintenance, inventory, and facilities management. These innovative capabilities would further support the VA’s combined objective to build its capacity to serve Veterans and its employees efficiently and effectively by the utilization of a department-wide management system. Maximo will make data-driven decisions, appropriately distribute resources, and manage results. These capabilities will uphold the VA’s Strategic Goal to improve internal customer satisfaction by investing in human capital. A more advanced enterprise-wide asset and service management system will fulfill the requirements as set by the Federal Information Security Management Act (FISMA) of 2011.

It is hard to believe that my year of service is soon coming to an end, it seems not too long ago I was reviewing my VAD and wondering how I was going to be able to complete with success the task outlined. The thought of it all was overwhelming yet a welcomed challenge as I knew the outcome would be playing a part in increased food security for families who depend on both food pantries I am serving at as well as continued sustainability for the pantries.

Using the payback method, Proposal A has a payback period of 6 years and 3 months, as calculated using the formula:

The provided information is used to access whether investment propose by the Rich Stenson, marketing manager, is feasible or not. The NPV analysis is made to assess the feasibility of Champ Sport investment in alloy which will be used to produce and sell metal baseball bats.

Which method of determining product costs, job-order costing or process costing, would be more appropriate in each of the following situations?

Since Kokosing is a privately held organization that gains projects through bidding, many of the specific numbers and formulas for determining price are confidential. Thus, information concerning the company’s price or business information is not publicly available. Therefore, to collect data concerning Kokosing’s pricing strategy, Mr. Bart Moody, a current employee of Kokosing, was interviewed to gain insight to the process. Mr. Moody is currently the lead estimator responsible for multiple asphalt divisions of Kokosing, but he also spent many years as an estimator himself. He has much experience with calculating the price Kokosing bids to conduct a multitude of projects, so he has a strong grasp on the company’s pricing strategy. The interview consisted of six questions concerning Kokosing’s pricing strategy, specifically how demand affects the profit margin added to each project. Additionally, other factors were discussed to determine other influences that may also be responsible for the variation in pricing. The full interview and questions can be viewed in the Appendix.

On our first meeting with our sponsor, we were asked to do a cost analysis to determine what is the lowest price that the company can charge for each style and when would they break even. Since the company had taken reserves on almost all the shoe styles for Dr. Comfort, we had to determine the net inventory after the reserves. To accomplish this task, we created an excel worksheet that lists all the items that have been assigned a percentage of reserves (Please refer to the worksheet in Appendix).

There are a myriad of strategies and techniques used by organizations to manage transfer pricing, with many of them designed for tax advantages across varying national and regional boundaries. As institutional factors of a given nation including the economic, political and legal systems all impact the creation, direction and future composition of national accounting systems, an organization's taxation strategies need to take these factors into account (Shenkar, Luo, 2007). Any given national accounting system will have a direct impact on a given firm's investment, asset management and foreign currency management strategies. Transfer pricing is also used for averting taxation between nations as well, as the GlaxoSmithKline PLC case illustrates.

Viacom is currently one of the most prominent conglomerates of American media. From films and television shows to music awards and record labels, it is unlikely that one would not run across one of Viacom’s many acquisitions. Beginning in 2005, Viacom has continually expanded throughout the United States and even abroad. Viacom makes use of a variety of different media techniques and strategies to maximize their profits and grow their company. In order to completely understand the business model of Viacom, it is crucial to analyze its role as a conglomerate as well as its use of integration, synergy and the franchise model.