Time Driven Activity Based Costing Nestle

Added on - 28 May 2020

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RManagerialAccountingTime-Driven Activity-Based CostingNestle
TIME-DRIVEN ACTIVITY BASED COSTING1Table of ContentsIntroduction...........................................................................................................................................2Company Profile................................................................................................................................2Purpose of Nestle..........................................................................................................................3Values of Nestle.............................................................................................................................3Strategy of Nestle..........................................................................................................................3Strategic Roadmap Of Nestle.........................................................................................................4Time-Driven Activity-Based Costing (TDABC).....................................................................................4Time Equation to Capture Complication........................................................................................6Features of Time-Driven Activity-Based Costing (TDABC)..............................................................7Difference between Time-Driven Activity-Based Costing (TDABC) and Activity-Based Costing (ABC)...........................................................................................................................................................8Difference between Time-Driven Activity-Based Costing (TDABC) and Traditional Costing..............8Reason for why Time-Driven Activity-Based Costing is suitable for Nestle Company........................9Conclusion...........................................................................................................................................10References...........................................................................................................................................11
TIME-DRIVEN ACTIVITY BASED COSTING2IntroductionEvery organization wants to increase its productivity and manage the time and resourcestaken by each activity. Nestle Company is one of them who always want to improve itsproductivity and profit. Nestle is known as the largest company of food and beverages and awell-known brand recognized across the world. This report is going to be prepared in order toidentify whether the Time-Driven Activity-Based Costing (TDABC) will be suitable for theprocess and function of the business. The report will provide the brief description of theNestle Company along with the model of Time-Driven Activity-Based Costing (TDABC)and its features. Further, the report will differentiate between the Activity-based Costing(ABC), Traditional Costing, and Time-Driven Activity-based Costing (TDABC).Company ProfileNestle is an international company dealing in the sector of food and beverages. Headquarterof the company is in Vevey, Switzerland. It is known as the world’s biggest company offood, evaluated by metrics and revenues, since 2014. In 2014, the company was ranked onNo. 72 by the Fortune Global 500 and in 2016; it was ranked on No. 33 in the Forbes Global2000 which involve the list of biggest companies. The product line of Nestle includesbreakfast cereals, Maggie, baby food, tea and coffee, medical food, ice cream, confectionery,bottled water, snacks, pet foods, dairy products and frozen food (Nestle, 2018). Twenty-ninebrands of Nestle have yearly sales over CHF1 billion, comprising Nesquik, Maggie,Nespresso, Vittel, Nescafe, Stouffer’s, and Kit Kat. Company operates in 194 countries with447 factories, and 330,000 employees. Nestle company is the major shareholder of world’sbiggest company of cosmetics i.e. L’Oreal.
TIME-DRIVEN ACTIVITY BASED COSTING3Purpose of NestleThe purpose of Nestle is improving the life's quality and contributing to a better andimproved future. They want to contribute in shaping a healthier and better world byencouraging society to have better and healthier lives. This is their way to contribute tosociety and fulfill their corporate social responsibilities and confirming the success of thecompany for long-term (Nestle, 2018).Values of NestleThe values of Nestle are imitated by their way of pursuing business; they always follow andrespect the rules and regulation implemented by the government. They always give equalrespect to the people with whom they work.Strategy of NestleIn today's scenario nutrition act as an important aspect of everyone's life. The strategy of theNestle Company is focused towards delivering various benefits to every individual throughthe products and services they offer. The company is working hard from last 150 years andnow they have succeeded in attaining the top position by anticipating and understanding thesociety needs, and constantly familiarizing themselves to grab the presented opportunities(Nestle, 2018).The fast-changing expectations and needs of the society reconfirm the strength of ourwellness, health and nutrition strategy. The world is at the point of change. The rapidity,strength and the range of change are extraordinary. The digital disturbance is redesigning thewhole industry, relations with the company’s retailers and suppliers, and customers.Technology and science developments are providing opportunities to the Nestle Company inorder to play a major role in considering the challenges faced by the society. In the world
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