ABC-ABM at Hewlett-Packard Europe for customer support

Hewlett Packard is an American group specialized into the computing sector and the converse market. Hewlett Packard is organized by product into several Business Units. The traditional accounting system gave information on costs per department. crimson if there are worldwide accounting system rules, separately manager of a business whole can utensil new accounting system.

b.Calculate the unit cost of the delivery processes for France and the unit cost of the delivery process ?HP On-sit? by activities for FranceActivityDriverVolumeCost per unitCall receiptNumber of peal calls 91 300 0.02Call qualificationNumber of call qualifications 61 875 0.03Dispatching(people and parts)Number of dispatchings 36 ergocalciferol 0.03Logistics(parts handling) Number of make ups with parts go 40 000 0.09FreightNumber of repairs with parts moved 40 000 0.06POP(customer Assis (part/unit sent))Number of customer assist repairs 3 000 0.52On-site HP CENumber of hours for HP CE repair + travel 40 000 0.25On-site TempsNumber of hours for Temps repair + travel 10 000 0.08On-site third party CENumber of repairs where a 3rd party engineer went on-site 12 000 0.14CourierNumber of repairs that go finished courier 5 000 0.12CE AssistNumber of repairs with require CE Assist 10 000 0.16EscalationNumber of repairs that require HW escalation 400 3.88RopsTotal number of repairs in Repair run Processing 83 000 0.



03ActivityRemote resolutionCourier Assist(Exchange)POPII.Describe all possible uses of ABC for decision-making and equalise them with HP needs and possibilitiesThe ABC system is the more apply to allocate costs.

It uses drivers such as resources and activities to allocate cost agree to a cause-and-effect consumption relationship.

This method is very heavy to execute up but (as we can see in HP?s case) seems sometimes to be necessary to have a precise and accurate cost allocation method.

1. The ABC method makes managers have a precise view on all(prenominal) activity.

As cost pools are activities, the ABC method enables...

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