Costing Methods

In: Business and Management

Submitted By mbisor
Words 298
Pages 2
Costing Methods Paper
Monisha Bisor
ACC/561
November 21, 2011
Carol Demuth

Super Bakery, Inc. Super Bakery, Inc. was formed in 1990 by Franco Harris, a former professional football player. Super Bakery sells vitamin and nutrient-enriched baking goods as a virtual corporation. Super Bakery’s selling, manufacturing, warehousing, and shipping activities are outsourced to external companies in different locations.
Strategy
Super Bakery faced several challenges in the first four years of operating. They needed to penetrate an existing market that had seen little growth in the baking goods sector. Management realized the need for change. They began to develop unique strategies. The first strategy was to target the school system segment of the food market with healthy, low-calorie, nutritious donuts. This was appealing to the school system market because Super Bakery’s product would help increase sales that were declining due to increased government health requirements. Next Super Bakery began refrigerating, vacuum sealing, and distributing their products across the nation. They were able to break the barrios of local markets and they became a national presence. They gained numerous customers and provided good customer service. Super Bakery helped its customers saved money, too. Finally, Super Bakery was able to lessen investment in permanent staff, fixed assets, and working capital by outsourcing all operating activities and becoming a virtual corporation. The manufacturing, distributing, and selling functions are all performed externally. This means that all costs associated with these activities were outsourced as well.
ABC System

References 1. Kimmel, P.D., Weygandt, J., & Kieso, D.E. (2009). Accounting: Tools for business decision making (3rd ed.). Retrieved from The University of Phoenix eBook collection database.…...

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