Publicly Traded Company that Engages in E Commerce Activities Paper

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Business Finance

Description

  1. Activity-Based Costing (ABC) in Service Industries
    Research a publicly traded company that engages in e-commerce activities. Write a 5–6-page paper in which you:
    1. Describe the company you researched in 1–2 paragraphs.
    2. Discuss how an Activity-Based Costing (ABC) system can be implemented in the company you researched and the benefits that the use will yield to the business performance.
    3. Assess how using an ABC system can provide a competitive advantage to the company in the e-commerce marketplace for which it competes and the resulting impact to the business performance. 
    4. Examine the potential impact of ABC costing on e-commerce activities compared to those provided through traditional channels, considering how this knowledge will impact decisions made by management about these services.
    5. Use at least three quality academic resources in this assignment. Use the Strayer Library to conduct your research. Note: Wikipedia and other websites do not qualify as academic resources.
    6. Your assignment must follow these formatting requirements:
    • Typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
    • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. Check standardization to see if SWS language should be added for grad courses.
    • This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.The specific course learning outcome associated with this assignment is:
    • Evaluate the impact an Activity-Based Costing (ABC) system could have on a company’s business performance, competitive advantage, costs, and management decisions.
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Explanation & Answer

Attached.

Running head: ACTIVITY-BASED COSTING (ABC) IN SERVICE INDUSTRIES

ACTIVITY-BASED COSTING (ABC) IN SERVICE INDUSTRIES

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Introduction
When talking about the Activity-based costing one of the best industry that can be used in
the context is the United Parcel Service. It is abbreviated as UPS which is an American
international package delivery and supply chain management company. The international logistic
company is based in the city of Sandy Springs in the United States (Holsen). The main function
of UPS is to do a distribution of packages and documents across the world, moreover, for the
past few decades, the company has protracted its services portfolio which involves the less than
truckload transportation in the United States and the supply chain services. The company is
divided into three segments which are domestic package operations and here the company is
involved in the time definite conveyance of letters, important documents and parcels across
America.
International package operations comprise the distribution to more than two hundred
countries and territories globally and the activities include shipment outside the United States
and distribution either inside or outside. Supply chain and freight operations at UPS is involved
in the forwarding of contract logistics operations and also the UPS freight and other business
units which are segmented under this operation like the UPS store and the UPS capital (Gil, 2018).
UPS was then able to develop the usage of the Activity Based Costing system so they could be
able to link the behavior of the product to the customer segment costs. Furthermore, there was a
need to support the current and the new product pricing decisions and lastly to have a clear and
consistent report on the relia...


Anonymous
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