ABC-ABM at Hewlett-Packard Europe for customer support. Isabelle Lacombe & Pierre-Laurent Bescos

Topics: Cost accounting, Costs, Cost Pages: 4 (1067 words) Published: February 15, 2010
TABLE OF CONTENTSQuestion 1a ……………………………………………………………………………………………………………………….3b ……………………………………………………………………………………………………………………….3c ……………………………………………………………………………………………………………………....4Question 2 …………………………………………………………………………………………………………………………………5Question 3 …………………………………………………………………………………………………………………………………6Question 4 …………………………………………………………………………………………………………………………………6References …………………………………………………………………………………………………………………………………7QUESTION 1a.Calculate the cost of the activities for France.

Table 1.4 Calculation of the ABC results for Q3 1998; cost per activity in € thousandsActivity FranceGermanyItalyUKTotalCall receipt1.4502.2509001.5006.100Call qualification1.6503.0008002.0007.450Dispatching (people and parts)1.2501.0009509754.175Logistics (parts handling)3.5004.9502.6003.90014.950Freight2.5003.1501.2003.0009.850POP (Customer Assists (Parts/Unit sent))1.5501.3508002.1005.800On-site HP CE10.07517.1005.6009.00041.775On-site Temps7759006006002.875On-site 3rd party CE1.6509006001.0504.200Courier6001.3505003002.750CE Assist1.5502.4751.0001.2006.225Escalation1.5502.4751.1001.5006.625Rops2.4004.0501.8002.10010.350Total30.50044.95018.45029.225123.125b.Calculate the unit cost of the delivery process for France, and the unit cost of the delivery process 'HP On-Site' by activities for France.

Table 1.9 Unit cost of repair per delivery process for France, Q3 1998 (in €)Activity Remote solutionCourier Assist (Exchange)POP (Parts/Unit Sent)On-site HP CEOn-site TempsOn-site subcontractInstallationTotal Total cost in € (a)1.6411.8632.30817.3573.1122.8761.34430.500Number of repairs per process (b)24.0005.0003.00022.0009.00012.0008.00083.000Unit cost per repair in € = (a)/(b)*100068373769789346240168367Table 1.11 Cost per repair and per activity (Q3 1998): cost by activities for the delivery process 'HP On-site' (in €)Activity FranceGermanyItalyUKCall receipt17,57,56,79,1Call qualification22,050,624,824,7Dispatching (people and parts)31,121,515,119,6Logistics (parts...

References: REFERENCESMeulen van der, H. & Koomen, C. (2010) Lecture 2, chapter 4&5 Held at Nyenrode Business Universiteit, 20 January 2010.
Lacombe, I. & Bescos, P.L. (1998) ABC-ABM at Hewlett-Packard Europe for customer support.
Horngren, C.T. Datar, S.M. Forster, G. Rajan, M. & Ittner, C. (2009) Cost Accounting, a managerial emphasis, thirtheenth edition. USA, Pearson International Edition.
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