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In the Picture Frames Unlimited case (a case used in the semester), we sought to identify the upstream, downstream and activity-based customer costs for two
In the Picture Frames Unlimited case (a case used in the semester), we sought to identify the upstream, downstream and activity-based customer costs for two types of cost objects: the customer distribution channels and individual customers. The information contained in Table 1 below represents a sample of summary data for the activity analysis of the indirect customer costs at Picture Frames Unlimited. A. I. As part of her advice to the Picture Frames Unlimited CFO Sherri, Melissa [the business analyst] has suggested the need to continually review the cost drivers used for each of the activity-cost pools. Why might this be necessary? 3 marks II. Briefly outline the consequences of poorly constructed activity cost pools in an ABC system. Use the indirect customer costs activity matrix in Table 1 to illustrate your answer. 3 marks B. With reference to the Picture Frames Unlimited case, clearly articulate ONE key benefit of well executed customer profitability analysis. 3 marks C. In completing the Picture Frames Unlimited case, we made significant use of spreadsheets, databases and the SQL query function. Briefly outline how the use of the SQL query function is able to support management decision-making. Provide an example to illustrate. 3 marks In the Picture Frames Unlimited case (a case used in the semester), we sought to identify the upstream, downstream and activity-based customer costs for two types of cost objects: the customer distribution channels and individual customers. The information contained in Table 1 below represents a sample of summary data for the activity analysis of the indirect customer costs at Picture Frames Unlimited. A. I. As part of her advice to the Picture Frames Unlimited CFO Sherri, Melissa [the business analyst] has suggested the need to continually review the cost drivers used for each of the activity-cost pools. Why might this be necessary? 3 marks II. Briefly outline the consequences of poorly constructed activity cost pools in an ABC system. Use the indirect customer costs activity matrix in Table 1 to illustrate your answer. 3 marks B. With reference to the Picture Frames Unlimited case, clearly articulate ONE key benefit of well executed customer profitability analysis. 3 marks C. In completing the Picture Frames Unlimited case, we made significant use of spreadsheets, databases and the SQL query function. Briefly outline how the use of the SQL query function is able to support management decision-making. Provide an example to illustrate. 3 marks
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