Distribution of Beverages to its Retail Customer Case Study

Distribution of Beverages to its Retail Customer - Case Study Example If it offers a discount or charges less price for its products from one of its customers then it has to charge a lower price for its entire customer which will result in a loss for the company. The current costing method that is adopted by Johnson Beverage Inc in order to analyze the costing and profitability of the business and understanding the cost of the business that is underlying in order to analyze the cost and the income drivers. Therefore an in-depth knowledge is required in order to understand the profitability as per the stock keeping unit. For the improvement and development of the costing and profitability of the business, the company has adopted job order costing. JBI uses or adopts this costing as it assists JBI in analyzing and evaluating the net cost of its manufacturing process over a definite period of time. Under this method of costing the accurate cost that is incurred in the cost of production of the particular unit are maintained. JBI adopts both job order costing and process costing for different parts of its operations. The main disadvantages of applying or adopting this method of costing are it is very difficult or critical in identifying the overall activities that are undertaken that influences the cost of performing this activity. It is very critical in identifying the preferable cost drive that will evaluate or analyze the cost on the basis of the various activities. JBI mainly adopts fixed cost method for its billing purpose in order to analyze the fixed cost for all its activities and it analyzes and finds out the reason for variations in price. It allows the company in leveraging its efficiency and expertise in order to gain competitive advantage. Relevant costing may be defined as the cost that will influence the decision making of the company. The most relevant and best-costing method that JBI  should adopt on the basis of Exhibit 1 and Exhibit 2 is Activity-based costing. It can be observed that in Exhibit 1 that the cost of the goods is subtracted or deducted from the revenue in order to generate the gross margin. It also calculates the customer profitability of the company.  

Emerging Markets Essay Example | Topics and Well Written Essays - 2000 words - 1

Emerging Markets - Essay Example While developing economies are usually flooded with emerging markets, the concept is not novel to developed economies. It is these emerging markets, which when successful in the future, become economic giants in the industry (Garten, 1997). The emerging markets need to consider a lot of geographical and economic concerns before setting in a foreign country. They may be small enterprises or large projects. This paper seeks to evaluate the industry of emerging markets in the United States and see how successful it has been over the years. It would also analyze how these emerging markets have affected the economy of US and all related economies. Emerging markets have had positive impacts and some negative setbacks and this paper would state both sides of the picture. The US is the third largest country in the world comprising an area of 3.79 million square miles. It accommodates over 300 million people in fifty states, and being so, it remains the most populated region in the world. The US is the most ethnically diverse nation in the world with people from all over the world staying there for work, study or leisure. It has a GDP of 14.3 trillion US dollars which proves that it is a relatively economically stable country in the world. However, about 11% of the US population lives below the poverty line (Juster, 1997). It has a very high rate of productivity and high rate of scientific developments and innovations. Also, the unemployment level in the US is fairly low and inflation is under control too. The US is bordered by the Pacific and Atlantic Oceans making it a favorable site for water travel. Also, it has sufficient nuclear weaponry and a strong army to ensure its defense against the worldly enemies. The US also enjoys fairly good relations with most economies of the world and it stands as a much unbiased nation with a lot of