activity based cost in and income statement need solution
Not what you're looking for?
Gomtek Auto Performance Parts Ltd.
Domenic Cianflone, MBA, PhD, FCMA (see attached file)
Gomtek Auto Performance Parts Ltd. is an importer of after-market auto parts, located in Toronto. Since its inception in 2001, the company has developed a reputation for sourcing rare performance parts (mainly exhaust systems) for luxury vehicles.
The CFO of the company has engaged your services to understand the cost to serve its four largest customers. Its first customer, Hillson Auto, is a large chain of retail-based auto parts stores that uses Gomtek to supply its own private-label brand. The second customer is Mauro's Automotive, an automotive repair shop that specializes in luxury Japanese vehicles. The third customer is Hambley Auto Parts, which specializes in luxury German vehicles. Finally, Drossel Automotive is a high-end retailer of auto parts that services automotive enthusiasts.
Gomtek's Controller has developed the following information:
* Refers to shipping charges incurred when shipping product back to suppliers.
The CFO is concerned about who is the most profitable to service, as there have been considerable pressures to hit higher profits. He has engaged your service to assist with this initiative.
Required
Use activity-based costing to prepare income statements for each individual customer. Hints: calculate your cost per driver then use all information in the case to prepare the income statements.
©D.Cianflone 2009
See attached file.
Purchase this Solution
Solution Summary
The solution discusses activity cost in and income statement.
Education
- B. Sc., University of Nigeria
- M. Sc., London South Bank University
Recent Feedback
- "Thank you."
- "thank you Chidi Ngene.. if you have any APA references would be great"
- "Thank you so much for your help, your explanations were easy to understand and apply!"
- "are you able to highlight the equations used either on the xlsx or a word doc as to how each graph was formed- overall looks fine i just need help understanding this myself"
- "Chidi Ngene, M. Sc. Was extremely helpful as without the help and guidance I would have failed, but with the help I passed. I still have a lot to learn and in need of the guidance to understand and learn more on the subject. I would recommend Chidi Ngene and BrainMass to anyone that are in need of help. Thank you!!"
Purchase this Solution
Free BrainMass Quizzes
Employee Orientation
Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.