Allied Office Products
Question 1
One suggested solution to the question is shown in Exhibits A and B
here. Requisition handling could also be charged per line rather than per
requisition. Data Entry could also be charged per requisition rather than per carton
line. These changes would not alter the overall result materially.
……
Question 2
One suggested solution to the question
is shown in Exhibits C and D here:
…….
Question
3
Exhibit E here is a summary of customer
profitability under the “old” and “new” accounting systems. The Exhibit ends
with the question of which is the better customer. The answer is not easy.
……….
Question
4
This question moves the focus of
the discussion from accounting issues to management decisions. Should TFC adopt
“menu pricing”?
This is a very rich question which will
support at least 30 minutes of class discussion. The basic themes are as
follows:
…….
