Week Four Costing Method Paper

Topics: Pittsburgh Steelers, Activity-based costing, Cost accounting Pages: 3 (797 words) Published: December 4, 2012
Costing Methods Paper
In 1983 a former Pittsburg Steelers’ Player Franco Harris formed a company called Super Bakery Inc. the company’s management had a very rough start because they monitored and followed practices in the industry too closely. Tracking and following the company’s practices hurt the growth of the industry and customers were not satisfied with performance Franco Harris and his staff needed to create strategies that will help the company improve customer’s satisfaction at the same time The company had a rough start, especially the first four years of functioning due to them trying to follow the industry practices too closely. This was very detrimental to Super Bakery Inc. because it was hurting the growth of the company. These disappoint drove Franco Harris and his management to find new tactics to reach their customers and show them what their product is all about and grow. Throughout this paper the strategies used by management of Super Bakery will discussed; as well as the reasoning the company chose the Activity-based costing system (ABC). Finally what would be the best order cost system for Super Bakery Inc. to utilize job or process? Strategies of Super Bakery Inc.

Super Bakery Inc. already started off with a rough start by trying to follow the industry practices that turned out to be a very disappointing outcome for the company and they knew that a change was needed. Well they knew that they needed to reach to the customers and get feedback of what they want. They have several strategies that are being used which helped the company to grow and the following is the first one: what happened is Super Bakery created a low calorie, protein, enriched donut that was not only tasteful and delicious, but met USDA guidelines and able to be served in the school system, which allowed annual sales growth. Next, Super Bakery refused to limit itself to the local market restrictions of having fresh baked goods daily that they in fact began...

References: Davis, T.R.V & Darling, B. L. (1996). ABC in a virtual corporation. Management Accounting 74(9)
Kimmel, P. D, Weygnandt, J.J., Kieso, D.L. (2009) Accounting Tools for business decision making (3rd ed). Hoboken, NJ John Wiley & Sons
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