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Treatment of allocated costs

Retrieve any report in the organization, such as Wal-mart, that allocates common costs to a division, product, or service. Recast that report with unallocated costs and comment on the usefulness of the revised report.

If you cannot identify specific actual amounts, make a reasonable estimate and apply the tool as if the data were factual.

If you are unable to identify any report with allocated costs, create a report that you think may apply to an organization, such as Wal-mart, and treat the data as if it were factual.

Your report should include:

1) The name and nature of the organization
2) The activity and time period you used
3) The inputs you used
4) Your results
5) Any implications from your results

Thank you for your assistance!

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About Wal-Mart

Founded in 1962 by Sam Walton, Wal-Mart followed an amazing pattern of success and growth, eclipsing all other U.S. department store retailers by the early 1990's. In early spring 2001, Wal-Mart enjoyed a huge market capitalization of over $230B, which was down from highs of nearly $300B in early 2000. Wal-Mart Stores, Inc. is the world's largest retailer and the largest company in the world based on revenues, ignoring profits (income), assets, and market capitalization. In the fiscal year ending January 31, 2002, Wal-Mart had $219 billion in sales and $6.6 billion in net income. It employs over 1 million people in the United States at 3,400 stores and 1.4 million people worldwide at 4,500 retail units in 10 countries: the United States, Mexico, Puerto Rico, Canada, Argentina, Brazil, China, Korea, Germany, and the United Kingdom (where it owns the ASDA chain of supermarkets).

Sam Walton, the founder of Wal-Mart, opened the first Wal-Mart store in Rogers, Arkansas in 1962. The company is publicly traded at the New York Stock Exchange under the symbol WMT and has its headquarters in Bentonville, Arkansas.

Allocation of Costs

We will use activity based costing to allocate costs. Activity-based costing can be used to ...

Solution Summary

This solution generates a report of allocated costs and actual amounts