The Portable MBA in Finance and Accounting, 3rd Edition

128 Understanding the Numbers Books “ ” Us will update Customer A’s buying profile (or open a new one) in order to better serve ...

Activity-Based Costing 129 that this was how software companies made their money. Once they captured a customer with an installe ...

130 Understanding the Numbers Carol found that the infrastructure build-out would not be cheap. She es- timated that it would co ...

Activity-Based Costing 131 Value System.ETN/ W is an intermediary providing services to the Web mer- chant and its fulfillment, ...

132 Understanding the Numbers THE FIRST MEETING Denise was very happy with the work they had done. She had reviewed the ma- teri ...

Activity-Based Costing 133 company’s costs often are found within another company in the value system. Although this may sound c ...

134 Understanding the Numbers activity costs by studying their processes real time. I suggest you recreate from past data as bes ...

Activity-Based Costing 135 steps. First, we drilled down from a high-level value system view to a process map and then ultimatel ...

136 Understanding the Numbers travel to the show, but the cost is budgeted. As a result, the cost per lead de- creases as we bec ...

Activity-Based Costing 137 we discussed last meeting, on one hand, you could keep an individual log on each customer to identify ...

138 Understanding the Numbers better managed. Although our accountant classified these costs as expenses, they are really an inv ...

Activity-Based Costing 139 buy, this would be the cost, not the average of $41,000 or the higher one for worst-case. Are you get ...

140 Understanding the Numbers group and four in the latter with the following result: best-case cost to load onto network approx ...

Activity-Based Costing 141 represents the large majority of the cost, this probably doesn’t cause us any material error. In tota ...

142 Understanding the Numbers Denise said she could meet then and added one more piece of advice. “ When you do your cost estima ...

Activity-Based Costing 143 $1.275 million ($375,000 in personnel and $900,000 in systems) is of value to our customers, and they ...

144 Understanding the Numbers Denise concluded: “So, it looks like the keys to success for ETN/ W are threefold. First, study yo ...

Activity-Based Costing 145 strategic cost systems were more often under the responsibility of the en- gineering rather than the ...

146 Understanding the Numbers reside within another in the chain. For instance, the driver for the ETN/ W customer sale cost poo ...

Activity-Based Costing 147 “objects” we developed costs for in the ETN/ W example—capturing and loading a customer onto the netw ...