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Case Details: You will complete this case study with your group. Access the PDF to read the details of Johnson Beverage, then, in collaboration with
Case Details:
You will complete this case study with your group. Access the PDF to read the details of
Johnson Beverage, then, in collaboration with your peers, write a page brief.
Address the following elements in your page brief:
Use the information in case Exhibits and and other necessary data in the case on
activities and costs to develop an activitybased cost system for JBI to use to determine
customer profitability.
Use the ABC system to estimate customer profitability for Saver Superstore, Oscars
OddLots, Midwellen Supermarket, and Downtown Retail.
Compare the estimated costs you calculate using an activitybased costing system to the
estimated costs using the current system of allocating customer service costs.
What causes the different costing methods to produce different results? Which costing
system provides management of JBI with better information? Why?
What are the strategic implications of your analysis? What recommendations do you have
for the management of JBI?
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