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Super Bakery

? What strategies did the management of Super Bakery, Inc. use.

? Why did Super Bakery's management think it was necessary to install an ABC system? Do you agree with their reasoning? If you disagree, identify your recommended costing system, including your rationale, to management.

? Would a job order cost system or a process order cost system work for Super Bakery. Why or why not?

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? What strategies did the management of Super Bakery, Inc. use.
Super Bakery Inc uses the strategy of doing only the core, strategic function of the business and the remaining activities are outsourced. Super Bakery is able to pull together a number of companies together and organize the work flow. The strategy of the company is to add maximum value but at the same time reduce investment in permanent staff, fixed assets, and working capital. Its strategy is to leverage to the maximum its core competencies.
The strategy of Super Bakery is to outsource its functions like selling, manufacturing, warehousing, and shipping and to reduce the costs of outsourcing. The strategic objective of Super Bakery is to provide maximum value to the company.
? Why did Super Bakery's management think it was necessary to install an ABC system? Do you agree with their reasoning? If you disagree, identify your recommended costing system, including your rationale, to management.
Super Bakery thought it was necessary to install an ABC system because it suspects a wide variation in the cost of serving customers in different parts of the country. The problem it faced was that the traditional methods of costing used by Super Bakery spread costs over the entire customer based. The objective of Super Bakery was to control the cost of outsourced activities. Super Bakery wanted to identify orders with high profit margins at the same time it wanted to accurately assign the cost of each order. ...

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Super Bakery is discussed in great detail in this solution.

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