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Kanthal Abc
Essay specific features
Written by:
Alfred H
Date added:
April 11, 2017
Level:
University
Grade:
A
No of pages / words:
2 / 380
Was viewed:
9011 times
Rating of current essay:
Essay content:
Administrative, sales and marketing costs were treated as a fraction of product cost indifferently from the product type and the order.
It seems after analyzing the fraction of each of the costs in the total product cost that overhead is not negligible and that the company cannot afford going on using the same account management system without an important loss of profitability...
displayed 300 characters
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Or, at least, that the company could be much more profitable if an activity based costing was applied to reestimate the cost per product and per order (and therefore per costumer) and review the prices depending on the the type and volume of each order.
After analyzing the product costs for each costumer, it seems that the cost for some of the big costumers is higher than expected and that the profit margin is negative...
displayed 300 characters
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