377.E璧山福禄山泉饮用水业成本控制探究 外文原文

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1、University Tees: Introducing fundamentals of management accounting in a small businessPeter C. Brewer a,*, Michael A. Garamoni b, Joseph Haddadca Department of Accountancy, Miami University, Oxford, OH 45056, United States b Miami University, Oxford, OH 45056, United States c University Tees, Inc.,

2、26865 Center Ridge Road, Westlake, OH 44145, United States article info AbstractKeywords: This case introduces sophomore-level managerialManagerial accounting accounting students to pricing decisions. The caseCost drivers also offers an opportunity to discuss the conceptsRelevant costs of business s

3、trategy, business risk, and cost driversBreakeven analysis Students draw on concepts such as relevant costing,Contribution margin break-even analysis, and contribution format incomePricing decisions statements to recommend price quotes for a small business.12008 Elsevier Ltd. All rights reserved.1.

4、IntroductionJoe Haddad and Nick Dadas founded University Tees () in 2007 to sell customized t-shirts, embroidered apparel, and other promotional items. While Joe and Nick sensed that there would be a niche for their business in the college town of Oxford, Ohio (home to Miami University), they unders

5、tood that success would not come easy given the daunting reality of small business failure rates. The success of their venture hinged in large part on being able to calculate intelligent bid prices for new business opportunities. If bid prices were too low, then the company would secure many custome

6、r orders, but it would not generate any profit. If bid prices were too high, then the company would not secure enough customer orders, let alone earn sufficient profits. The question Joe and Nick wrestled with was obvious: How do we develop a pricing strategy that will enable us to grow our customer

7、 base and our profits at the same time?” As a starting point, Joe and Nick decided to focus their attention on pricing their companys most important product line, t-shirts. 2. Customer analysisUniversity Tees serves college students and the organizations and activities that they participate in, such

8、 as intramural sports teams, sororities and fraternities, theatre and band groups, and professional societies. These student groups have a large amount of bargaining power with t-shirt suppliers for two reasons. First, the quality of screen-printed t-shirts is largely the same regardless of who supp

9、lies them. Second, numerous price quotes can be easily obtained through phone calls or internet-based inquiries and then readily compared to one another. While switching costs tend to be minimal, student groups often remain loyal to a supplier who makes a favorable impression while handling their fi

10、rst order, primarily because setting up accounts and payment plans through university-held funds can be complicated and time-consuming. University Tees customers typically use four factors in choosing a t-shirt supplier. First, college students and student organizations often have a limited amount o

11、f money, so cost is a critical factor. Second, college students tend to be short on time, and they fulfill their extra-curricular commitments in the evening hours and on weekends. This requires that suppliers provide hassle-free service and convenient business hours. Third, students busy schedules s

12、uggest that they need suppliers that can deliver products on short notice. Fourth, customers prefer t-shirts with visually appealing art work that is customized to their creative vision. While students often have interesting ideas about how to design their t-shirts, they do not have the artistic ski

13、lls to translate those ideas into a drawing that can be used for silk screening purposes. 3. Competitor analysisUniversity Tees faces two types of competitors. First, numerous internet companies sell customized t-shirts and ship them directly to the customers door. These companies are geographically

14、 dispersed across the United States and usually have standard business hours (via telephone access) specific to the time zone where they are located. Internet suppliers rely primarily on clip-art to create t-shirt designs, or they require customers to submit artwork. The standard delivery time for a

15、n internet company is 1014 days from the date when the artwork is completed and the customer places the order. University Tees second key competitor is College Custom Apparel (CCA), a bricks-and-mortar business in the city of Oxford. CCA maintains normal weekday business hours at its production faci

16、lity and retail sales office located about one half mile from the Miami University campus. CCA works with customers to create customized artwork. The company purchases the appropriate quantity of t-shirts from its suppliers and then uses its own production facility to create and add the desired scre

17、en-printed patterns to the t-shirts. CCA notifies customers by telephone when their order is complete, and the customers return to the store to pick up their finished goods. The table below summarizes the prices charged by University Tees competitors for various quantities of t-shirts with a one-col

18、or design on the front and another one-color design on the back to be delivered in the standard time frame of 1014 days: Quantity CCA Average internet competitor 25 shirts $12 per shirt $13 per shirt 50 shirts $10 per shirt $11 per shirt 100 shirts $8 per shirt $10 per shirt 200 shirts $7 per shirt

19、$9 per shirt 4. University Tees strategy and cost structure University Tees strategy is to differentiate itself from competitors in four ways. First, University Tees reduces its fixed overhead costs by outsourcing t-shirt production. Given that t-shirt quality is largely the same regardless of who p

20、roduces the garment, University Tees decided not to spend money creating manufacturing capacity that mirrors the capabilities of its competitors. Instead, the company focuses its resources on marketing and on-campus customer relationship management. Second, University Tees uses students as commissio

21、ned-based sales representatives, available to customers via cell phone seven days a week, day or night. Third, the company employs an artist who meets with customers at a location of their choice to create artwork that exactly corresponds to their preferences. Fourth, the company provides customers

22、with an average order-to-delivery cycle time of 710 days. Since University Tees uses United Parcel Service (UPS) for product delivery, customers can place and receive orders without ever having to leave their residence. Since University Tees does not have any bricks-and-mortar facilities to maintain

23、, it has very low fixed costs as follows: Combined salaries of two partners $20,000 per year Overhead costs (e.g., website, phone, fax) $5000 per year Marketing costs (e.g., newspaper ads, fliers, pens) $2000 per year The variable costs incurred by University Tees include sales commissions of $0.50

24、per shirt sold, a $20 artwork fee per design (paid to the companys artist), plus the following costs to acquire finished t-shirts from suppliers: T-shirts $3.00 per shirt Printing $0.50 per side, per color, per shirt for orders of 150 shirts $0.40 per side, per color, per shirt for orders of 51100 s

25、hirts $0.30 per side, per color, per shirt for orders of 101150 shirts $0.20 per side, per color, per shirt for orders greater than 150 shirts Screens $15 per screen (each design requires a separate screen for each color in the design; assume customers do not put the same design on the front and bac

26、k of a t-shirt) Shipping $0.60 per shirt For example, if University Tees received an order for 70 t-shirts that had one art design on the front requiring two colors and another art design on the back requiring two colors, the total variable cost of the order expressed on a per t-shirt basis would be

27、 computed as follows: T-shirts ($3 per shirt) $210.00 Sales commission ($0.50 per shirt) $35.00 Shipping ($0.60 per shirt) $42.00 Artwork design ($20 per design) $40.00 Printing ($0.40 per side, per color, per shirt, or in this case $1.60 per shirt) $112.00 Screens ($15 per screen) $60.00 Total vari

28、able costs (a) $499.00 Number of t-shirts (b) 70 Variable costs per t-shirt (a) . (b) $7.13 5. Bidding on customer orders Joe and Nick believed that with the right pricing strategy they could sell between 5000 and 15,000 t-shirts in the coming year. Their suppliers could easily provide 15,000 t-shir

29、ts if the best-case scenario materialized; however, Joe and Nick realized that expecting to sell more than 15,000 t-shirts in the coming year was overly optimistic given that their start-up company was beginning operations with no brand recognition on the Miami University campus. As Joe and Nick rev

30、iewed three current bid opportunities and their average order profile, they wondered what price per t-shirt to choose for each of these four scenarios. Order 1 Order 2 Order 3 Average order Number of t-shirts 30 60 300 50 Front of the shirt Number of art designs 1 1 1 1 Number of colors 1 2 2 1 Back

31、 of the shirt Number of art designs 1 0 1 1 Number of colors 2 0 2 1 Questions ：1. How would you describe University Tees strategy? What risks does University Tees face that may threaten the attainment of its strategic objectives? 2. What key factors influence the prices that companies establish for

32、 their products and services? 3. Define the cost driver for each of University Tees variable costs. Without calculating any numbers, would you expect the total variable cost expressed on a per t-shirt basis for high volume orders to be higher or lower than the total variable costs expressed on a per

33、 t-shirt basis for low volume orders? Explain your answer. 4. What is the total variable cost expressed on a per t-shirt basis for each of the four order scenarios in the case? 5. What bid price per t-shirt would you establish for each of the four order scenarios in the case (round your answer to th

34、e nearest dollar)? Would your answer differ depending on whether each order was placed by a repeat customer or a new customer? Why or why not? 6. Are University Tees fixed costs relevant to its pricing decisions? Why or why not? 7. Assuming that all of University Tees sales conform to its average or

35、der profile, use your recommended selling price to determine the number of t-shirts that must be sold to break even. Also, prepare a contribution format income statement that shows University Tees net operating income if it sells 15,000 t-shirts at your recommended price. 8. Assume that all of Unive

36、rsity Tees sales conform to its average order profile. Prepare two contribution format income statements: (a) assume 12,000 units are sold at a price of $9 per t-shirt and (b) assume 8000 units are sold at a price of $10 per t-shirt. What insights about the relationship between price, quantity sold,

37、 and profits are revealed by these income statements? 6. Implementation guidance The University Tees case is intended for sophomore-level managerial accounting classes. The case strikes an appropriate balance between offering a realistic business context that will engage students and providing the s

38、implicity that is necessary for an introductory course. This balance is an important contribution of this case, given that a majority of cases are written for an MBA audience and possess too much complexity for sophomores. Students will need prerequisite knowledge in six areas to successfully analyz

39、e the case. First, they will need an elementary introduction to the concepts of strategy and business risks. Second, they will need to understand the difference between variable and fixed costs. Third, they will need to understand how to compute a breakeven point. Fourth, they will need to understan

40、d how to prepare contribution format income statements. Fifth, they will need a basic understanding of the meaning of relevant costs. Sixth, the case will generate a more engaging discussion if students have been introduced to some fundamental pricing concepts, such as cost-plus pricing and market-b

41、ased pricing. As a reference point, these topics are covered in chapters 1, 2, 6, 13, and Appendix A of Managerial Accounting, 12th edition, by Garrison, Noreen, and Brewer. This section of the paper describes three approaches for teaching the case. First, the case can be used in a group-oriented or

42、al presentation format in 50 or 75-minute classes. Each group of students can be given the case study, including the discussion questions, at least one week before oral presentations will be given in class. The professor can require all of the groups to submit an electronic copy of their PowerPoint

43、slides 24 hours before the case will be presented in class by two groups. The professor can review the slideshows to identify and select two groups that have differing approaches to setting their prices. These two groups can then be asked to present their recommendations back-to-back in 1020 minute

44、intervals. The remaining class time can be used to discuss the differing points-ofview provided by the two groups of presenters. Second, the case can be assigned as a group-oriented research and writing assignment. The scope of this assignment can expanded beyond the specific facts of the University

45、 Tees case by requiring students to read one or more of the articles included in the annotated bibliography that accompanies the implementation guidance. These articles provide a platform for students to create a written report that not only analyzes the University Tees case, but also overviews prom

46、inent pricing insights and strategies used by real-world companies. Third, the case can be taught without providing the students the discussion questions in advance of class. With this approach, students are only required to thoroughly read the case prior to arriving in class. The professor directs

47、the students to contemplate one discussion question at a time. Given that the students have not seen the questions, this approach readily accommodates small-group discussions during class. The students bring fresh energy to the questions because they have not seen them before. For example, the profe

48、ssor can pose the first question and then ask students to break into groups of 35 students to describe University Tees strategy and risks. The class can reconvene in five minutes to collectively discuss the insights generated in the group discussions. There is not enough time to have group breakout

49、sessions for all eight questions, so the professor will need to use discretion in terms of choosing which questions to use for group breakouts and which questions to discuss as an entire class. For professors who opt to use question four for a group breakout session, we recommend breaking the class

50、into four sections and asking each group to complete the required calculations for only one of the four order scenarios. The groups can then share their answers with one another, saving a large amount of class time because each group does not have to engage in four sets of redundant calculations. In

51、cluded in this implementation guidance is an annotated bibliography that can be used for two purposes. First, some of the articles can be used to frame the discussion and analysis of the University Tees case. Second, some of the articles can be used to expand class discussion beyond the specific fac

52、ts of the University Tees case to provide a broader perspective on challenging real-world issues that influence pricing decisions. Pricing decisions are among the most important decisions that companies make, yet this topic often receives limited attention in the classroom. The annotated bibliograph

53、y offers help to professors who wish to use University Tees as the centerpiece of a larger discussion of the practical realities that complicate pricing decisions. 7. Annotated bibliography Anderson and Simester (2003). Mind your pricing cues. Harvard Business Review (September), 96 103. This articl

54、e discusses many of the behavioral aspects of effective pricing strategies. For example, the authors suggest that choosing prices that end in the number nine signals a bargain to customers and therefore increases sales. This article complements J. Gourvilles Note on Behavioral Pricing” that is also

55、included in this bibliography. These two readings can be used to broaden the discussion of pricing to recognize the fascinating reality of how human behavioral tendencies influence the pricing process. Baye, Gatti, Kaufman, and Morgan (2007). A dashboard for online pricing. California Management Rev

56、iew (Fall), 202216. This article discusses online pricing strategies. Several case studies are presented for companies whose prices are listed at a price comparison website called Kelkoo. Berman (2005). Applying yield management pricing to your service business. Business Horizons (March/April), 1691

57、79. This article describes how service companies use yield management pricing to earn higher revenues from their fixed capacity of available resources. It explains an eight-step yield management pricing implementation process. Yield management is an excellent topic that allows professors to expose t

58、heir students to how service companies manage the real-world complexities that influence pricing decisions. Corey (1982). Note on pricing strategies for industrial products. Harvard Business School Publishing (pp. 117). This reading provides a comprehensive overview of many factors that influence pr

59、icing decisions including cost-based pricing, customer value and the willingness to pay, price elasticity of demand, the impact of competitors on pricing, and customer bargaining power. Dean (1976). Pricing policies for new products. Harvard Business Review (NovemberDecember), 141153. This classic a

60、rticle explains how products should be priced and repriced over their life cycle. It compares price skimming and penetration pricing strategies for new products. Dolan (1995). How do you know when the price is right? Harvard Business Review (September October), 174183. The author describes eight ste

61、ps to better pricing. These steps include assessing what value customers place on a product or service, assessing customers price sensitivity, and analyzing whether the revenue generated is worth the cost to serve. It offers excellent practical pricing advice. Dolan and Gourville (2005). Principles

62、of pricing. Harvard Business School Publishing (pp. 110). This reading provides an in-depth discussion of value-pricing. It provides an interesting discussion of how to assess a products objective value to customers and the products perceived value to customers. It can be used to expand the scope of discussion to