Students, Please View The Submit A Clickable Rubric A 485461

Students Please View The Submit A Clickable Rubric Assignment In Th

Research a U.S. company in the service industry with e-commerce activities. Write a six (6) page paper in which you:

1. Describe the company you researched in one to two (1-2) paragraphs.
2. Discuss how a time driven ABC cost 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 market space it operates and the resulting impact to the business performance.
4. Examine the potential impact of time-driven ABC costing on services provided online with those provided through traditional channels, considering how this knowledge will impact decisions made by management about these services.
5. Use at least three (3) quality academic resources in this assignment.

Note: Wikipedia and other Websites do not qualify as academic resources. Your assignment must follow these formatting requirements: · Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format.

Check with your professor for any additional instructions. 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. The specific course learning outcomes associated with this assignment are: · Analyze the concepts of job order costing, process costing, and activity-based costing. · Use technology and information resources to research issues in managerial accounting. · Write clearly and concisely about managerial accounting using proper writing mechanics. Click here to view the grading rubric. Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following rubric.

Paper For Above instruction

In this paper, I will explore the application of Activity-Based Costing (ABC), specifically the time-driven ABC system, within a prominent U.S. service industry company engaged in e-commerce. The chosen company for this analysis is Amazon.com, Inc., a global leader in e-commerce and cloud computing services. Amazon operates a complex network of online retail services, logistics, and technological infrastructure, making it an ideal candidate to investigate the implementation and impact of advanced costing systems like ABC.

Company Description

Amazon.com, founded by Jeff Bezos in 1994, started as an online bookstore but has since evolved into the world's largest online retailer, offering a vast array of products and services. Its core business encompasses e-commerce retail, Amazon Web Services (AWS), digital streaming, and artificial intelligence. Amazon’s business model emphasizes efficiency, customer satisfaction, and innovation. Its operations include multiple fulfillment centers, a sophisticated logistics network, and an extensive digital ecosystem, which collectively necessitate precise and effective costing methods to support pricing strategies, profitability analysis, and operational efficiencies.

Implementation of Time-Driven ABC in Amazon

The implementation of a time-driven ABC costing system in Amazon involves allocating costs based on the actual time spent on different activities, such as order fulfillment, customer service, warehousing, and logistics. This system simplifies traditional ABC by using estimated driver times to assign overhead costs more accurately. For Amazon, adopting a time-driven ABC could involve utilizing data analytics, RFID tracking, and enterprise resource planning (ERP) systems to monitor the time commitment for each activity involved in delivering products and services.

The benefits of implementing this system include improved accuracy in cost allocation, enhanced understanding of cost drivers, and better insights into profitable products and services. This allows Amazon to identify high-cost activities, optimize resource utilization, and price products more competitively. Additionally, it supports strategic decisions such as expanding or phasing out specific service offerings or adjusting logistics strategies based on activity costs.

Competitive Advantage through ABC

Using an ABC system provides Amazon with a significant competitive advantage by enabling more precise cost management and profitability analysis across its diverse service offerings. For instance, accurate cost data can lead to optimized pricing strategies, promotion planning, and service differentiation. This precise costing can empower Amazon to compete more effectively against other retailers and e-commerce platforms by identifying which product categories or services generate the highest margins and which require efficiency improvements.

Furthermore, ABC facilitates better strategic decisions around product assortment, logistics optimization, and customer segmentation. These insights can translate into targeted marketing efforts, personalized services, and cost reductions, consequently improving overall financial performance and customer satisfaction. The ability to accurately allocate costs also enhances transparency and managerial control over various operational units, fostering a culture of continuous improvement and innovation.

Impact of Time-Driven ABC on Online and Traditional Services

The potential impact of time-driven ABC costing on services provided online versus those through traditional channels is substantial. Online services, such as real-time customer support, digital content delivery, and cloud computing, inherently involve different cost structures compared to traditional brick-and-mortar services. Implementing time-driven ABC allows an organization like Amazon to allocate costs more accurately based on actual time and effort associated with each service type.

This understanding influences managerial decisions regarding resource allocation, pricing, and service development. For example, if online services are found to be more cost-efficient due to lower overheads or faster transaction times, management can focus on expanding digital offerings. Conversely, higher costs in traditional channels may signal the need for process improvements or technological upgrades to reduce expenses. Incorporating this detailed cost information fosters strategic investments in technology, infrastructure, and human resources aligned with cost-efficiency goals.

Conclusion

The integration of time-driven ABC costing into Amazon’s operational framework exemplifies how advanced costing systems can provide competitive advantages, foster strategic decision-making, and optimize resource utilization in the dynamic world of e-commerce. As digital services continue to grow, understanding their true costs through sophisticated methods like time-driven ABC will be essential for maintaining market leadership and operational excellence. This approach not only improves financial outcomes but also enhances the company's agility in responding to market changes and technological innovations.

References

• Drury, C. (2018). Management and Cost Accounting. Cengage Learning.
• Hilton, R. W., & Platt, D. E. (2019). Managerial Accounting: Creating Value in a Dynamic Business Environment. McGraw-Hill Education.
• Kaplan, R. S., & Anderson, S. R. (2004). Time-driven Activity-Based Costing. Harvard Business Review, 82(11), 131-138.
• Horngren, C. T., Datar, S. M., Rajan, M., & Grewal, S. (2020). Cost Accounting: A Managerial Emphasis. Pearson.
• Blocher, E., Stout, D., Jarnik, M., & Cokins, G. (2019). Cost Management: A Strategic Emphasis. McGraw-Hill Education.
• Gordon, L. A. (2017). Cost Management: Strategies for Business Decisions. Routledge.
• O’Neill, H. M., & Sweeney, D. (2018). The Role of Cost Management in Client Service Delivery. Journal of Management Accounting Research, 30(4), 45-60.
• Kaplan, R. S., & Atkinson, A. A. (2015). Advanced Management Accounting. Pearson.
• Anthony, R. N., Govindarajan, V., & Wan, H. (2019). Management Control Systems. McGraw-Hill Education.
• Chenhall, R. H., & Langfield-Smith, K. (2019). Management Control Systems. Routledge.