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 $1-$page brief.

Address the following elements in your $1-$page brief:

$1.$ Use the information in case Exhibits $1$ and $2$ and other necessary data in the case on

activities and costs to develop an activity$-$based cost system for JBI to use to determine

customer profitability.

$2.$ Use the ABC system to estimate customer profitability for Saver Superstore, Oscar$$s

OddLots, Midwellen Supermarket, and Downtown Retail.

$3.$ Compare the estimated costs you calculate using an activity$-$based costing system to the

estimated costs using the current system of allocating customer service costs.

$4.$ What causes the different costing methods to produce different results? Which costing

system provides management of JBI with better information? Why?

$5.$ What are the strategic implications of your analysis? What recommendations do you have

for the management of JBI?