Assignment: Glaser Health Products
Complete: Case 5A (Glaser Health Products)
In this case, management needs assistance in evaluating and classifying costs identified within Glaser Health Products in order to implement an activity-based costing system. Please address Questions 1 through 6 at the end of the case. Based on the case questions, you are required to provide a two to four double-spaced written report providing management with the necessary guidance in implementing an activity-based costing system. The written report should be properly formatted according to APA guidelines and demonstrate research and critical thinking skills. Explanations and recommendations should be supported by at least 3 scholarly sources from the Ashford Library or other external sources, excluding the textbook.
For Questions 1 through 3, create a chart to classify and identify a cost driver for each of the costs provided in the text. The chart should be included as an appendix to the written report. Explanations of the classifications and identifications within the chart should be included within the written report, supported by references to the appendix.
Questions 4 through 6 should be addressed in fully developed explanations/instructions as part of your written report. The written analysis should be supported by at least three scholarly sources, excluding the textbook.
Required: 1. Identify each of the costs with the appropriate division: Operations, Sales, Administrative.
2. Identify each of the costs with one of the following:
(a) Unit-level activities.
(c) Product-level activities.
(b) Batch-level activities.
(d) Facility-level activities.
Organize these classifications by division: Operations, Sales, Administrative.
3. Specify an appropriate cost driver for tracing costs associated with the various levels of activities to the next cost objective or products, whichever is appropriate.
4. Glaser Health Products is interested in using activity-based costing to identify as many costs as possible with the products. These costs will be used for planning and control decisions rather than for inventory valuation. The controller decided that all operation costs will be related to products but only those sales and administrative costs that are classified as unit-level, batch-level, or product-level costs should be related to products. Using preliminary stage cost drivers, explain how individual items of costs will be traced to activity groupings.
5. Using primary stage cost drivers, show how the costs should be related to products.
6. Explain why it is necessary to use preliminary stage and primary stage cost drivers.
Week 3 Written Assignment should:
• Demonstrate graduate level work including appropriate research and critical thinking skills.
• Be presented as a written analysis (not a question/answer format).
• Incorporate case questions into the overall analysis.
• Follow APA formatting guidelines including title page, reference page and in-text citations.
• Consists of two to four double-spaced pages of content.
Provide at least three scholarly sources, excluding the textbook.
Information related to above question is enclosed below:
Attachment:- Week3Assignment-CASE5A.rar