At Deutschland Electronics, Product Lines Are Charged for Call Center

question 140

Essay

At Deutschland Electronics, product lines are charged for call center support costs based on sales revenue. Last year's summary of call center operations revealed the following:
Deutschland Electronics currently allocates call center support costs using a rate of 0.5% of sales revenue.
Required:
a. Compute the amount of call center support costs allocated to each product line under the current system.
b. Assume Deutschland decides to use the average call length for information to assign last year's support costs. Does this allocation method seem more appropriate than percentage of sales? Why or why not?
c. Assume Deutschland decides to use the numbers of calls for information and for warranties to assign last year's support costs of $65,000. Compute the amount of call center support costs assigned to each product line under this revised ABC system.
d. Deutschland Electronics assigns bonuses based on departmental profits. How might the Specialty Products manager try to obtain higher profits for next year if support costs are assigned based on the average call length for information?
e. Discuss the barriers for implementing ABC for this call center.

Identify different societal responses to deviance across communities and historical periods.

Comprehend the ways in which definitions of deviance can change over time and vary between cultures.

Examine the role of power and social class in the treatment of deviance.

Explain the concepts of social control theory, structural strain theory, and labeling theory.

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Definitions:

Market Diversification

The strategy of entering into new markets or creating new products to reduce reliance on a single market or product line.

Synergy

The combined effect of two or more individuals, entities, or factors that is greater than the sum of their separate effects.

Indemnity

A contractual obligation of one party to compensate the loss incurred by the other party due to the acts of the indemnitor or other specified causes.

Reciprocity

Refers to a mutual exchange of privileges or benefits between two parties, where each party offers something in return for what is received, often seen in trade agreements.