Color scope Case Management Accounting Essay

Printing sector, which is due to the new technologies coming to the market, that made a assortment the competitive position of the company. The impact of the external environment ? Problem Identified ? Lowering of the barriers to entry due to the cheaper technologies implemented in the market ? Advanced engineering science grinding down the quality-based competitive advantage. ? High competition from large national chains and small stand-alones ?Price pressures and loss of high margins, i. e. rent Management history The Original Allocation ?The company faced inaccuracy issues in identifying customer profitability, using of the Activity Based Costing (ABC) ?Calculating rent of Assembly Sq. ft. We took the total arrive of rent and divided it by the total amount of the square feet which is 30000/15000 and then multiplied it by the square feet of the assembly department cost pool 4000, which adds up to $8000.($30,000/15,000 sq. ft. )*4,000= $8,000 ? Calculating Others for Assembly L abour hrs. Using the same method, but using the total amount of the number of labour hours instead of the square feet utilized. ($20,000/2440hrs)*1,280= $10,491. 8 ? In order to maintain a competitive advantage, this report is to review the system they are using and point out what needs to be done to scatter the issues faced