Activity Based Costing Essay Example | Topics and Well Written Essays - 1000 words

Activity Based Costing - Essay Example More than that, it traces back the cost to the activities and processes (Heisinger, 2010). Above all, use of activity based costing (ABC) method especially in companies with diverse centers and distribution channels has proven to be suitable. Unlike other methods, the activity based costing (ABC) method ensures that there exists a direct correlation between the related overhead costs and the occurrence of an activity (Chang, 2010). Without doubt, the marketing manager decision to use the activity based costing (ABC) method, as a way of critically analyzing the customer support and distribution costs is more suitable, as compared to taking the store with the highest contribution margin ratio.... Without doubt, the marketing manager decision to use the activity based costing (ABC) method, as a way of critically analyzing the customer support and distribution costs is more suitable, as compared to taking the store with the highest contribution margin ratio. Workings Cost allocation based on revenue Total revenue is $ 500,000 1) Department Stores = $150,000/ $500,000 = 0.3 2) Specialty Shops = $100,000/ 500,000 = 0.2 3) Gift Shops = $250,000/500,000 = 0.5 (Bragg, 2002) i) Variable production cost is $150,000 Department Stores = $150,000 * 0.3= $45,000 Specialty Shops = $150,000 * 0.2 = $ 30,000 Gift Shops = $150,000 * 0.5 = $ 75,000 ii) Production Overhead $120,000 Department Stores = $120,000 * 0.3= $36,000 Specialty Shops = $120,000 * 0.2 = $ 24,000 Gift Shops = $120,000 * 0.5 = $ 60,000 iii) Selling & Distribution Costs $180,000 Department Stores = $180,000 * 0.3= $54,000 Specialty Shops = $180,000 * 0.2 = $ 36,000 Gift Shops = $180,000 * 0.5 = $ 90,000 Activity Based Costin g (ABC). Total costs/No of orders places $40,000 10 90 900 Cost drive is the number of orders placed Department Stores = $40,000 * 10/1000= $400 Specialty Shops = $40,000 * 90/1000 = $ 3,600 Gift Shops = $40,000 * 900/1000 = $ 36,000 (Finkler, Ward & Baker, 2007) Total costs/No of sales calls 80,000 5 195 800 Cost drive is the number of sales calls Department Stores = $80,000 * 5/1000= $400 Specialty Shops = $80,000 * 195/1000 = $ 15,600 Gift Shops = $80,000 * 800/1000 = $ 64,000 Total costs/No of shipments 60,000 20 480 1,000 Department Stores = $60,000 * 20/1500= $800 Specialty Shops = $60,000 * 480/1500 = $ 19,200 Gift Shops = $60,000 * 1000/1500 = $ 40,000 Allocation of other costs is based on the

Art History Writing Assignment Example | Topics and Well Written Essays - 500 words

Art History Writing - Assignment Example These paintings were oil based and mostly portrait. The influence of religion on the approach used by the artist of the era in the presentation of their ideas is evident from the type of pictures and paintings produced. Both the sculptures and painting of the era comprised of beautiful figures moving gracefully in multi-figure compositions conveying humanity and the perfection of God. Despite the growing influence of the Italian renaissance humanism, it was not able to influence artists outside Italy (Kleiner 589). Therefore, artists in Europe were not influenced by the humanism approach employed in the art from Italy. Northern painters travelled to Rome and are known as Romanists because they were influenced by the works of Michelangelo and exhibited the stylistic tendencies of mannerism. The northern renaissance in northern Europe was not influenced by the Italian renaissance but was closely linked with the protestant reformation. The series of internal and external conflicts between the Roman Catholic Church and the protestant groups had a lasting effect on the type of art developed in northern Europe. In contrast to the 1500 to 1600 art, the 1700 t0 1800 art was comprised of the concept of enlightenment. The frivolous paintings of Fragonard and the politically charged moralizing images of David influenced art (Kleiner 583). The leadership of the king of France who ruled by divine light and the development of the enlightenment thinkers indicates a change from the 1600 art. The art of the era was defined by Neo-classicism, which included the support of the revolution. It exhibited movement from the roman art that proceeded the era, which contributed significantly to the characteristics of the art depicted by Mona Lisa painting, and other paintings related to Christianity. In fact, the roman art was based on religion and the perfection of God and the role of spirituality in changing the behaviors of people with the focus being on the nature of