Report to GM Sales & Marketing: Identification, Evaluation and Justification of Expenses or Cost Cat

Identification, Evaluation and Justification of Expenses or Cost Categories

Requirements:

The only information you have is available through the public domain and the additional information provided for this assignment (this is fictitious information used only for the creation of this assignment). Therefore, you are to limit your research, review and analysis and any report and recommendations to the information obtained through the public domain. Do not contact Methven or any persons associated with the company about this assignment.

1.Write a report to the GM Sales & Marketing that addresses the following:

a)Identify, evaluate and provide justifications of areas of expenses or categories of costs, as defined in the financial statements and fictitious scenario, which are of concern to you including the current costing system.

b)Evaluate the results of your pilot Customer Profitability Analysis using ABC principles.

c)A brief review of any problems and practical issues that may be faced in carrying out an ABC-based customer profitability analysis.

d)Complete an action plan of any changes or improvements you would address for any issues identified in a) and/or b) above. Present this in bullet point format, with a brief explanation of each action point.

e)Identify and discuss risks that the GM Sales and Marketing needs to consider for 2015 - 2016 that should then be discussed at Board level.

2.Identify and attach an academic or research article that support your evaluation for Question 1a) and/or 1b) above. From the article, prepare a maximum 200 word summary which provides the links to your evaluation in Question 1.

Question 1

a)Identification, evaluation and justification of expenses or cost categories

which concern you. This includes any relevant calculations.

b)Evaluation of pilot CPA

c)Review of problems and practical issues with CPA

d)Action plan

e)Identification and discussion of risks for the Board