1.Calculate the revised product costs for the four pens, based on the activity information collected by
Assignment: This case may be completed in groups of two or individually. You are responsible for finding a partner if you choose to complete the case with another student.
Purchase and read the Harvard Business School Case: Classic Pen Company: Developing an ABC Model located at the following link: https://cb.hbsp.harvard.edu/cbmp/access/27312446. (Note: The last case for the course, Foxy Originals is also contained in this course pack and should also be purchased for your final case).
After reading the case, perform the following:
1.Calculate the revised product costs for the four pens, based on the activity information collected by Dempsey. Prepare this analysis using an excel spreadsheet (please print out the spreadsheet on one page – it should fit). 2.Prepare a new Income Statement, using excel or word, for Classic Pen (by product and in total) using the ABC cost information (please print this out on one page).
3.Compare the ABC Income Statement to the Traditional Income Statement presented in the case.
4.Based on this comparison, write a memo, to me, addressing the actions this new ABC cost information could stimulate Classic Pen to pursue. Be thorough while still maintaining strong business writing skills: conciseness; clarity; critical thinking; readability; proper use of grammar, punctuation and spelling. The memo should be prepared in Microsoft Word or a comparable word processing application, use 1 inch margins, times new roman 12 point font, single spacing and not exceed 2 pages (this does not include your supporting spreadsheet data 1 and 2 above).
5.Turn in your memo and supporting data in class on Thursday, June 12, 2014.
Please note: It is a violation of the academic code of ethics to refer to case notes or solutions obtained through the internet or from people who previously performed the work or studied the class materials, cases or projects. Use of any of these materials will be considered plagiarism. Not only will this not help you on the course exams and CPA exam; it will cheat you of the academic experience. It is the responsibility of every student to report anyone who violates this principle. I reserve the right to request submission in electronic format and have access to plagiarism detection software.
You are free to discuss this case with other students; however you (and your partner if applicable) must produce your own set of work to be turned in as your deliverable. Use of someone else’s work in any form will be considered plagiarism and dealt with accordingly. I am available as a resource but I should be viewed as a “last resort”. I will answer specific questions but I will not frame the deliverable or pre-screen your work prior to submission of your final deliverable. The calculations in this case are quite straight-forward, the more challenging part of the case is framing your response to question 4 and it is good practice for you as current/future business professionals. There is not “one right answer”; your response should, however, be logical, critically thought out and well communicated. Good luck!! A Note on Business Writing:
Effective business writing is critical to your future professional success. In addition, the AICPA evaluates candidates’ writing skills in the computerized Certified Public Accountant (CPA) Exam. Please use this case as a chance to practice your business writing. A great resource to use if you feel you need help in this area is the following: Effective Writing: A
Handbook for Accountants; Claire B. May and Gordon S. May; Pearson Prentice Hall.
The Uniform CPA Examination consists of multiple-choice questions and condensed case studies called simulations. Each case study simulation will include a writing skills exercise. In this portion of the exam, candidates must read a situation description and then write an appropriate document (“constructed response”) relating to the situation. The instructions will state what form the document should take (such as a memo or letter) and its focus. The candidate’s response should provide the correct information in writing that is clear, complete, and professional. Only those writing samples that are generally responsive to the topic will be graded. If your response is off-topic, or offers advice that is clearly illegal, you will not receive any credit for the response. Constructed responses will be scored holistically. Scores will be based on three general writing criteria: Organization, Development, and Expression. Organization: the document’s structure, ordering of ideas, and linking of one idea to another:
•Unified paragraphs (topic and supporting sentences)
•Transitions and connectives
Development: the document’s supporting evidence/information to clarify thoughts:
Expression: the document’s use of conventional standards of business English:
•Grammar (sentence construction, subject/verb agreement, pronouns, modifiers)
•Punctuation (final, comma)
•Word usage (incorrect, imprecise language)