Capp Stone

In: Business and Management

Submitted By wisdom
Words 884
Pages 4
Discuss how company’s can use activity-based costing to evaluate financial performance.
Activity-based costing can be used to evaluate company’s financial performance for management to improve profitability. Activity measures in both financial and nonfinancial forms. These measures are used to evaluate how well an activity how well an activity was performed and what was accomplished. They are setup to see if constant improvement is being realized. Measure of activity performance focuses on three major dimensions:
Efficiency which concentrates on the relationship of activity inputs to outputs. To improve activity efficiency is to produce the exact activity output with lower cost for the inputs used. Cost and trend then becomes important to measures of efficiency.
Quality main concern is doing things correctly the first time it is done. If activity is defective, activity will have to be repeated which causes unnecessary cost and reduction in efficiency.
Time required performing an activity which is critical. Longer times means, more intake of information and less ability to respond to customer demands. Time measures of performance are usually nonfinancial. (Palepu, Shank, Knapp, Gibson, Mowen, 2010, p.277)
Identify the pros and cons of using an activity-based system over functional-based cost accounting.
Functional-based overhead costing has two important stages: overhead costs are assigned to an organizational unit (plant or department), and the other is overhead costs which is assigned to cost objects. Activity-based costing (ABC) traces cost to activities and then to cost objects. The main assumption is that activities consume resources and cost object in turn consume activities. ABC is also a two stage process; however, ABC stresses direct tracing and driver tracing (exploiting cause-and-effect relationship. While a volume based costing system…...

Similar Documents

Oliver Stone

...Oliver Stone’s USA Wesley Kostovetsky 3070 Spring The History Behind Oliver Stone’s Success Oliver Stone is called by many a historian. Some call him a cinematic historian. Others call him a type of public historian. Oliver Stone likes to refer to himself strictly as a dramatist and in some cases a docu-dramatist. Whatever title chosen there is no doubt he has a made a huge impact through his films; though some may argue in a negative way. Oliver Stone has written and/or directed films about the Vietnam War, Kennedy’s assassination, Nixon’s presidency, Wall Street, the military dictatorship in El Salvador, and many other subjects. Stone’s expertise in film lay in what most “Hollywood executives prefer to avoid. Historical and political cinema is supposedly deadly at the box office.” Stone’s films are known to make audiences “uncomfortable” and cause “controversy”. Through four essays, including one written by Oliver Stone himself explains the reason why his films have made huge impacts and controversies; as well as, the differences between written history and history on film, and the life experiences leading to the creation of some his films and his connection to them. Since the beginning of his career Stone has been “viciously attacked” by critics about his films. The main argument by critics of history films is that they are too fictional for a number of reasons. Though containing “numerous authentic elements” and details the invention of scenes, dialogue,......

Words: 2032 - Pages: 9

Sticks and Stones

...Sticks and Stones by Trezza Azzopardi He races to the top of the dune and looks down onto the strand. There is water and wet sand and dry sand and small pokes of sharp grass dotted along the beach. He stands on the lip of the concrete defence; looks east, to the line of groynes, then west, to the lighthouse in the distance. There's no one he can see, no one he can call to for help. Below him, the drop onto the beach is fifteen, maybe twenty, feet. He jumps because he has to, jumps out into the air, and sees as he falls one more thing; a cloud of white birds hanging on the skyline. There is a hot taste filling his mouth, like molten iron, and a black pain, and the knowledge that his teeth are through his lip. It's always this same dream that Lewis has, and he does the same thing when he wakes; he reaches up to feel the place where his bottom lip was opened, running a finger over his chin. He has a scar there still, almost imperceptible to the casual eye, like a ghost mouth that never opens, like a horizon. It has been fifteen years since he jumped and fell, and he has never been back to the beach. He has spent his adult life in the heart of England, at the very core of the city, as if putting himself in the dense centre of a world would protect him from another fall off the edge of it. But now he has returned to his mother's house, and the dream is more vivid here, in colour, with sound effects and rising panic, as if it too has finally come home. “There's a letter for you”...

Words: 1982 - Pages: 8

Sticks and Stones

...”Sticks and Stones” by Trezza Azzopardi Fear is a curious thing. It has been said that fear is important. Because it's our survival instinct. It's what keeps one from touching a red hotplate. This story centers around the fear of being bullied. We're all very familiar with it. At one point, everyone has either been bullied or been the bully. Even if they don't want to admit it. It's a fact. The important thing is, not to dwell on it, but rise again stronger than before. It has also been said ”What doesn't kill you makes you stronger”. That's probably also true. Even though it might not seem that way at first. The story takes place in England, London. There are several characters in this story. Not a lot of information is given about all of them. Lewis is probably around 25 years old. ”It has been fifteen years since he jumped and fell” And he was probably around 10 or 13 at the time. He moved back to his mother's house. He has been having the same nightmare about the day he jumped. Only it's more vivid now. It's possible that he feels guilt about what happened with Paul Fry. ”Sometimes, he imagines he's the kind of person that challenges teachers like Scott and Walker, the kind that the Headmaster takes seriously” That must mean that he is quite the opposite. A very scared person who doesn't stand his ground. It seems that all he has been doing his whole life is running from this. Or ”jumping” when things get too dangerous. When he jumps off of the concrete defence,...

Words: 880 - Pages: 4

Sticks and Stones

...Sticks and Stones As a child, you can be so traumatized that you will never recover. The trauma can be several different things. But parental failure, mistrust, and abuse are some of the most horrible things a child can be exposed to. Some children are never able to let their traumas go, so they can live on with their lives. And therefor it will keep hunting them for the rest of their existence. Questions like “Why didn’t my mother belief me?”, “Why me?” and a lot of similar questions will always be right there, right in the back of your head. Ready to strike when you least expect it, and in that way, strike the hardest.   Exactly like in “Sticks and Stones” where Lewis is wondering what would had happened if his mother and the headmaster had done something before it was too late.  In “Sticks and Stones” the agent ‘flashback’ is used repeatedly. Mostly to show the reader why Lewis is, whom he is at this point of his life, and to show why he has not been able to go on with his life. It is furthermore to show how the traumas have shaped the boy into an obsessed man. The flashbacks are used to make the reader almost feel the pain that Lewis felt by being ignored by his mother, when he cried for help after the incident on the edge. “Even when his mouth healed, and it was easier to say the words, she didn’t believe him. “It’s all in your mind,” she said” (p.15, ll. 119-120) Flashbacks are also a means to get the reader caught up in the story. It creates a different frame of......

Words: 425 - Pages: 2

The Rolling Stones

...The Rolling Stones are an English rock band formed in London in 1962. They were in the vanguard of the British Invasion of bands that became popular in the US in 1964–65. At first noted for their longish hair as much as their music, the Rolling Stones are identified with the youthful and rebellious counterculture of the 1960s. The band was instrumental in making blues a major part of rock and roll, and of changing the international focus of blues culture to the less sophisticated blues typified by Chess Records artists such as Muddy Waters, writer of "Rollin' Stone", the song after which the band is named. American music critic Robert Palmer said the Rolling Stones' "remarkable endurance" stems from being "rooted in traditional verities, in rhythm-and-blues and soul music" while "more ephemeral pop fashions have come and gone". The first settled line-up consisted of Brian Jones on guitar and harmonica, Ian Stewart on piano, Mick Jagger on lead vocals and harmonica, Keith Richards on guitar, Bill Wyman on bass and Charlie Watts on drums. Jones left the band less than a month prior to his death in 1969, having already been replaced by Mick Taylor, who left In 1975. Since then Ronnie Wood has been on guitar in tandem with Richards. Following Wyman's departure in 1993, Darryl Jones has been the main bassist. The band was first led by Jones, but after teaming as the band's songwriters, Jagger and Richards assumed defacto leadership. The Rolling Stones were inducted into the Rock...

Words: 370 - Pages: 2

Healing with Stones

...Healing with Stones by Dr. Oleg Torsunov His lectures can change your heart. His books can fill your life with happiness and meaning. “May everyone by happy. May everyone be free of infirmity and be strong and healthy. May everyone care for the wellbeing of others and I too want to bring goodness to others. May no one know any suffering May no one have any suffering.” -The Motto of Ayurveda Subscribe to our mailing list at the author’s website www.torsunov.com. Also available on the site are free books and audio lectures. Please feel free to distribute and make copies of this article I wish everyone happiness! 2012 © Dr. Torsunov - www.torsunov.com Oleg Torsunov [Ayurveda- the Science of Life] 9. Healing with Stones This article, based on O. Torsunov’s lecture “Healing with Stones”, has been compiled by Yekaterina Korbut In contrast to traditional western medicine, in Ayurveda, the use of personalized treatment methods for each concrete individual is customary. This approach serves as the foundation, for example, for: herbal reflexotherapy (treatment through use of individually selected herbs); selection of diet from smell of food products, etc. After thorough research into the principles of this ancient knowledge, Dr. O.Torsunov created his own method of treatment with semiprecious and precious stones based on Ayurvedic principles. His goal was a much higher effectiveness of treatment as compared to traditional western medicine. For example, using......

Words: 3835 - Pages: 16

The Stone Tower

...October 6, 2012 CRW150 - Introduction to Creative Writing - Class # 27071 Doris Patton Midterm Part 1: Creative Story The Stone Tower 1 “Can you get a clear shot Draz?” asked Tankus. “If he takes a step forward I can,” answered Draz. Daylight was disappearing in the forest as dusk began to set, but there was still enough light for the two friends to observe the movements of the tracker who had been silently tailing them for a good part of the day. “What kind of tracker is he?” said Tankus. “He looks like some kind of rat or something.” The tracker was hunched over now, trying to pick up their scent which he had lost several yards back in the brush. Skin like beaten old leather stretched over his long thin bones giving him a scare-crow like appearance, but it was the long, pointed nose set between black, beady eyes that made him look like a rat. He edged forward suddenly picking up their scent again. "Fwoooosh!" Draz’s laser arrow found its mark in the tracker’s temple. “Okay that’s cool,” said Tankus, “we know he’s been with us for several miles, so where do you suppose the rest of his entourage is? Where are the meat and the brains that sent out this dog?” “I don’t know,” said Draz, “I just hope we have enough fire power to keep them back. I don’t know how much more time Kalem needs to break into that old place.” Tankus raked his blonde goatee with his long nimble fingers, trying to add things up in his mind quickly. He was the planner of the group......

Words: 1037 - Pages: 5

Stone Mattress

...Nicole Encalada Professor: Rachel Bellande Language and Literature A February 25, 2015 Written Task 2, Part 4: Literature – Critical Study: Stone Mattress Prescribed question chosen: How could the text be read and interpreted differently by two different readers? Title of the text for analysis: Stone Mattress Part of the course to which the task refers: Part 4: Literature – Critical Study Outline of the essay: I - INTRODUCTION - Any text can be read and interpreted differently depending of its different readers, since everyone has a different way of seeing and understanding things depending on our ideologies, context etc. * Overview of the short story. * Explanation of the main audience; feminists given the strong feminist ideology. * Description of the two readers; feminists (II) and non-feminists (III). II – FEMINISTS * Description of feminism * Explanation of the feminist’s interpretation of the short story. * How certain actions in the story can be interpreted specifically. * Effect of the story on feminist readers. III – NON-FEMINISTS * Description of non-feminists and what do they support. * Explanation of the non-feminist’s interpretation of the short story. * Meaning of the short story for this reader. IV – CONCLUSION – Any text can be interpreted differently and there are no rules when you read. Not everyone thinks alike and there are different opinions. We can’t judge a story or even a person given our......

Words: 1146 - Pages: 5

Stone Corporation

...Stone Container by penguin8448 | studymode.com Background J.H. Stone & Sons, a cardboard container and paper products manufacturer was founded by Joseph Stone in 1926 and after World War II reincorporated as Stone Container Corporation. Early on in its conception Stone was able to grow significantly by way of acquisition. The company had a policy of paying for its acquisitions either entirely in cash or borrowing funds with early repayment. Continuing to grow, the company became publicly-owned when it issued its first 250,000 shares of stock in 1947. After its first IPO, Stone was able to widen its reach demographically. The company began acquiring even more to better diversify itself in the paper industry. By 1987 Stone had quintupled its production capacity but had borrowed heavily to do so. Stone Forest Industries, a subsidiary of Stone Container, was created to relieve some of this debt and Stone Container was able to diminish the rest. In 1989, Stone was back at it when it acquired Consolidated-Bathurst Inc in conjunction with its $3.3 billion of debt. Even with its high standing in the industry, in 1993 Stone Containers future was a shaking one; one that came down to how it would avoid defaulting on its $4.1 billion of debt. Problems Facing the Company Due to heavy acquisition, Stone Container Corporation has put themselves in a tight financial situation with upcoming debt and interest payments. Stone's plans to finance its large acquisitions such as...

Words: 2098 - Pages: 9

Cold Stone

...That’s why it’s so important that a business practice prudent financial management. Cold Stone Creamery Cold Stone Creamery was founded in 1988 by Susan and Donald Sutherland. The couple liked ice cream that was neither hard-packed nor soft-serve, and opened the first Cold Stone Creamery in Tempe, in the U.S. state of Arizona. In 1995, Cold Stone opened its first franchise in Tucson, Arizona, and grew quickly through the late 1990s and early to mid-2000s. in June 2008, a Wall Street Journal article, by Richard Gibson, examined the unusually high number of Cold Stone Creamery franchises that had closed or been put up sale by their owners, many of whom had severe financial losses and emotional distress. Challenges Facing Cold Stone Creamery Franchisees The following are the financial challenges confronting Cold Stone Creamery franchisees: 1. High prices in a tough economy. It’s hard to sell enough $4.00 scoops of ice cream in a difficult economy to support the overhead of a business that has a high overhead. 2. Saturated market. Cold Stone expanded rapidly and many franchisees complain that the stores are too close together. Its competitors also expanded in the 1990s and early to mid-2000s. 3. Believing the hype. Many Cold Stone franchisees bought in when the buzz surrounding the company was the strongest. 4. Franchisor control. In regard to specific financial issues, Cold Stone Creamery franchisees have complained about the way they are required to operate......

Words: 775 - Pages: 4

Rosetta Stone

...CASE #2 – “Rosetta Stone: Pricing the 2009 IPO” Group 2 will have to make a presentation before the entire class during the synchronous session on Monday, November 23, 2015. In April 2009, the Rosetta Stone management had to price the initial public offering of Rosetta Stone stock during one of the most difficult periods in capital-raising history. The case outlines Rosetta Stone’s unique language-learning strategy and its associated strong financial performance. Students are invited to value the stock and take a position on whether the current filing range is appropriate. The case is designed to showcase corporate valuation using discounted cash flow and peer-company market multiples. Answer the following questions in your report: 1. What is going on at Rosetta Stone? 2. Describe the economics of the Rosetta Stone business. Is this a business that you expect will generate interest among investors? What do you think the current market price is for Rosetta Stone shares? Justify your valuation on a discounted-cash-flow basis and a market multiples basis. • What are the pros and cons of using a market-multiples approach in valuation? • Consider a discounted-cash-flow model for valuing Rosetta Stone. Are you comfortable with the financial forecast in case Exhibit 8? What are the key assumptions? Is the length of the forecast period reasonable? • What discount rate is appropriate for the cash-flow forecast? • What was your approach for terminal value? How do......

Words: 285 - Pages: 2

Rosetta Stone

...economic green shoots were only a temporary rally in a longer-running bear market. There was strong concern that the magnitude of government spending would spur inflation in the U.S. dollar. GDP growth was still negative, corporate bankruptcy rates and unemployment were at historic highs, and many believed the economic void was just too big for a quick recovery to be feasible. A Wall Street Journal survey of U.S. economists suggested that the economy was expected to generate positive growth in the last half of 2009.1 In contrast, a survey of U.S. corporate executives stated that less than a third of respondents expected to see an economic upturn in 2009.2 The debate regarding the economic future of the world economy raged on. Rosetta Stone In the 1980s, Allen Stoltzfus, an economics professor, real estate agent, and history buff, was frustrated with his slow progress in mastering the Russian language. He was enrolled in a conventional classroom Russian course but found it much less effective than the process he had used to learn German while living in Germany years before. Seeking to produce a more natural language learning method, Stoltzfus envisioned using computer technology to simulate the way people learn their native language—with pictures and sounds in context. Rather than learning the language by translating one language to another, his approach would be to use 636 Part Eight Valuing the Enterprise: Acquisitions and Buyouts 1Phil Izzo, “Obama,......

Words: 514 - Pages: 3

Kidney Stones

...Esteban Salazar Professor Lucker HSCS-3302 April 11, 2016 Kidney stones Kidney stones have plagued men throughout recorded history; the problem has even been “diagnosed” in Egyptian mummies that date back some 7,000 years1. At present, kidney stones have sent most three million Americans to the doctor each year, including 500,000 trips to emergency rooms1. Men are more likely to form stones than women at the ages of 20-50, with a peak of 30, but the ones that are in higher risk are those who already suffered from a stone and have a 50 % chance of forming more stones later in life1. Caucasian males are affected more commonly than African-American males, although African-American males have a higher incidence of associated infection with kidney stones whereas females of all races have been noted to have a higher incidence of hydronephrosis2. There are causes, signs and symptoms, diagnostic procedures and treatments, and preventions strategies for kidney stones. Causes of Kidney stones Kidney stones, also known as renal calculi, are commonly composed of calcium (75%), struvite (15%), uric acid (6%) and cysteine (2%)2. Kidney stones are prevalent in hot climates, and it effects about 10% of people over their lifetime3. Kidney stones arise in the kidney when urine becomes supersaturated with a salt that is capable of forming solid crystals2. Although the urine may look like a simple fluid, it’s actually a complex liquid that contains hundreds of chemicals and......

Words: 1556 - Pages: 7

Stone Corporation

...STONE CONTAINER CORPORATION Latar Belakang Masalah J.H. Stone & Sons, Produsen kardus, kertas karton dan produk kertas didirikan oleh Joseph Stone pada tahun 1926 dan setelah perang dunia II dirubah menjadi perusahaan dengan nama Stone Container Corporation. Pada awal pendiriannya Stone berkembang pesat dengan cara mengakuisisi perusahaan-perusahaan lain. Perusahaan tersebut mempunyai kebijakan membayar akuisisi tersebut dengan kas atau meminjam dana dengan pelunasan sesegera mungkin. Seiring dengan perkembangan perusahaan Stone , perusahaan memutuskan menjual sahamnya kepada publik dengan menerbitkan 250,000 lembar saham perdana pada tahun 1947. Dengan dilakukannya IPO, Stone dapat memperluas strateginya. Perusahaan tersebut mulai mengakuisi lebiha banyak dari sebelumnya dengan tujuan mendiversifikasi produknya yang bergerak dalam industri kertas. Sehingga pada tahun 1987 Stone berhasil meningkatkan kapasitas produksinya hingga empat kali lipat , namun hal tersebut diiringi oleh pinjaman yang sangat besar. Stone Forest Industries, anak perusahaan dari Stone Container, dibentuk dalam rangka untuk meringankan sebagian besar hutang Stone, sehingga pada akhirnya Stone Container berhasil untuk menghilangkan hutang tersebut. Pada Tahun 1989 Stone kembali melakukan strategi akuisisi kali ini dengan mengakuisisi Consolidated-Bathurst Inc perusahaan produsen pulp dan kertas terbesar ke lima di Canada, dengan harga $2.7 milyar , yang membuat Stone menjadi perusahaan kedua......

Words: 628 - Pages: 3

Smooth Stone

...One Smooth Stone Jennifer Riley Man 103 Management Principles Instructor Vicki Yanaga Saturday march 3, 2012 Mission of the One Smooth Stone is this, “We help clients build relationships critical to success of their business through exceptionally crafted programs and even in both physical and virtual environments.” In order to understand a company devised like One Smooth Stone it is best for discussing the different organizational structures and, other classifications also the cultures of the diversified company. Their business structures are also specialization and integration and structural integration and also delegation and the differentiation (One Smooth Stone). The One Smooth Stone is also unique how they have handled their business structures and even the cultures. This is a family oriented company that also cares about each other. Mainly their goal is also to provide the theatrical presentations and also with their clients, in the educational and fun with the empowering atmosphere to. With One Smooth Stone is really working hard for studying up on the clients and also to do the extra research on many of, their client’s needs and also offering the own expertise along with to better serve the clients. The team members also work together as a team and integrate the ideas plus take actions when it is necessary and making, each of the members responsible for their many jobs. There isn’t no one boss...

Words: 437 - Pages: 2