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Title: Kanthal Abc

Essay Details

Subject: Business
Author: Saundra C
Date: July 27, 2016
Level: University
Grade: A
Length: 2 / 380
No of views: 0
Essay rating: good 0, average 0, bad 0 (total score: 0)

Essay text:

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...

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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...

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