Printing sector, which can be due to the new technologies arriving at the market, that made a big change the competitive position from the company. The effect of the exterior environment?
Problem Identified:? Lowering of the barriers to admittance due to the less expensive technologies applied in the market? Modern technology grinding over the quality-based competitive advantage.?
High competition via large countrywide chains and small stand-alones? Price pressures and decrease of high margins, i. at the. rent Management Accounting The first Allocation:? The business faced inaccuracy issues in identifying buyer profitability, using of the Activity Based Being (ABC)? Establishing rent of Assembly Sq ft.: We-took the total amount of rent and divided it by the total amount of the square feet which can be 30000/15000 after which multiplied this by the square feet of the set up department cost pool 4000, which adds about $8000. ($30, 000/15, 500 sq . feet. )*4, 000= $8, 1000?
Calculating Others for Assemblage Labour hours periods.: Using the same method, but using the total amount of the number of labour hours rather than the square feet employed. ($20, 000/2440hrs)*1, 280= $12, 491. 8? In order to preserve a competitive advantage, this report is usually to review the system they are applying and mention what has to be done to handle the issues encountered