Strategic Management Assignment - CPU4U case study

Added on - 28 May 2020

  • 12

    pages

  • 3005

    words

  • 0

    views

  • 0

    downloads

Showing pages 1 to 4 of 12 pages
Running head: STRATEGIC MANAGEMENT ACCOUNTINGStrategic Management AccountingName of the Student:Name of the University:Author Note:
2STRATEGIC MANAGEMENT ACCOUNTINGAbstractThe main purpose of the assignment is to analyze the case study for the company named asCPU4U. In this particular assignment, proper emphasis has been given on explaining both thepricing approach (Activity-based approach and Traditional based pricing approach). CPU4Umanufacturers’ hardware components for computers, phones, automated manufacturingequipment and electronic equipment. The business report elucidates the current situation of thecompany that is needed for conducting strategic decision-making about pricing and control ofcosts. Proper explanation had been made in this business report about how the raw materials areallocated to three products (FMC6, RAMX2 and FMCL3) as computed under ABC approach.The business report even focus upon specific difficulties that can be seen with new productpricing by using fixed mark-up approach as part of the report.
3STRATEGIC MANAGEMENT ACCOUNTINGTable of ContentsIntroduction......................................................................................................................................3Discussion of the key aspects of the industry and current situation of CPU4U Ltd that is relevantfor strategic decision-making about pricing and control of costs....................................................3An analysis of pricing and profitability that would be useful for decision-making using the twocosting methods and any other techniques......................................................................................5An explanation on how the raw materials costs were allocated to the three products under theABC approach.................................................................................................................................6Discussing the particular difficulties with new product pricing as part of the report and providingan evaluation and recommendations that is appropriate for CPU4U Ltd........................................7Making a comparison of relevant strategic industry factors and any potential synergies as a basisfor recommendation to Matsuka......................................................................................................8Conclusion.......................................................................................................................................9Reference List................................................................................................................................10
4STRATEGIC MANAGEMENT ACCOUNTINGIntroductionThe case study is about the company CPU4U that engages in manufacturing hardwarecomponents for computers, phones, automated manufacturing equipment and electronicequipment (Theriou 2015). After completing the report, it will be easy to understand and explainthe concept of strategic management as used in the contemporary business environment. It willeven help in identifying the suitable objectives as well as strategies used by CPU4U in givensituations. The current segment or business report applies strategic management accounting toolsas well as techniques such as ABC costing and traditional costing pricing approach (Peppard andWard 2016). For this study, Lin had asked the team to conduct analysis of profitability andpricing strategy adopted by CPU4U. This was done by using both traditional overhead allocationas well as ABC costing approach. The business report had been written so that Lin can use as thebasis for a Board discussion on costing as well as pricing strategy (Rothaermel 2015). Thecurrent segment properly recommends at the end as to which costing approach should be used byCPU4U in their business operations so that they can maximize profits and minimize cost.Discussion of the key aspects of the industry and current situation of CPU4U Ltd that isrelevant for strategic decision-making about pricing and control of costsIn this question, it is needed to discuss about the key aspects of the industry and thenportray the current situation of CPU4U (Renz 2016). This company belongs to manufacturingindustry where they are engaged in manufacturing hardware components for computers, phones,automated manufacturing equipment and electronic equipment. Currently, the company has agood reputation as they manage the business carefully. They have to further work upon
desklib-logo
You’re reading a preview
card-image

To View Complete Document

Become a Desklib Library Member.
Subscribe to our plans

Unlock This Document