Dakota Office Case

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Title: Dakota Office Case

Essay Details:

Subject: Business

Author: Rebekah G

Date: December 24, 2014

Level: University

Grade: A

Length: 2 / 503

Essay text:

The current pricing system is also inadequate because it is incapable of accounting for even all of the known costs in addition to certain hidden costs. Certain factors are not being taken into account currently and there is room for differential pricing of products being implemented based on the services being offered and certain other factors like average accounts receivable balance, size of an order and the manner in which it is taken etc. An Activity Based Costing system would be the most accurate costing mechanism that can be implemented. We shall analyze some of the individual factors leading to inadequacy in the current pricing mechanism: ? Currently no difference is being taken into account between the manual orders and the EDI/internet-orders, although processing the EDI/internet-orders requires considerably less time than the manual orders hence cost less money...

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