The Allocation Problem session long project 4 (walmart) accounting Essay

The Allocation Problem session long project 4 (walmart) accounting - Essay Example The company allocates its administrative expenses to all the divisions and these common costs are used in this analysis. From the annual report of Wal-Mart, the incomes from various divisions are gathered. The administrative expenses are then allocated to each division. The allocation depends on a number of factors including the scale of operations in the division, number of stores operating in the division and the revenue generated (Wal-Mart Financial Review). The incomes from various divisions are presented below: The above report indicates that the Wal-Mart U S has the highest profit margin standing at 7.5 % ($ 19522 million / $ 258,229 million). However the International division has a low profit margin at 5 %. These performances are based on the incomes generated after taking the common costs into account. In order to identify the actual performance of the various divisions, the report is recast without taking the common costs into consideration. The recast report above without the unallocated common costs (administrative expenses, in this case) reveals that the International division contributes significantly towards the total income and towards covering the common costs. It is a known fact that the administrative expenses are hard to predict and are very unstable in large organizations. Hence the above report without the administrative expenses can be used to predict or estimate future performance of the divisions. Thus the common costs (in this case, the advertising expenses) are analyzed for Wal-Mart. The recast report with the unallocated costs reveals a number of facts about the profitability, thus giving a clear picture of the performance of the various divisions. This information without the allocated common costs can be useful in analyzing the contribution of the division to the company as a

Background on Boeing & Airbus Essay Example | Topics and Well Written Essays - 500 words

Background on Boeing & Airbus - Essay Example Airbus was founded in 1970 and it has in headquarters in Toulouse in France. The company took over the commercial airline business in the 90s and it has recorded tremendous growth in the past two decades. The company has majorly invested in manufacturing travel aircrafts for the global commercial market. In 1967, Airbus produced its first commercial Airplane, the A300. The Airbus A340 and A330 were later developed and Airbus along with its partner companies went into the Aircraft market with a brand that would take over the market shares globally (McGuire 1997). Airbus, just like its Boeing counterpart has always been led by the urge to maintain innovativeness throughout its period of existence, the company has always posed a challenge to itself to always improve on it previous models and to beat their rivals. This has majorly been achieved through investing in building and testing challenging ideas, perfecting them and ensuring that the final products meet the international standards in terms of quality and capacity (Thornton 1995). Boeing is the largest American Aircraft manufacturing company that was founded in 1916. Based on the time that the company has been in the business, its position in the competition in the industry is justified. It has developed some of the largest models of aircrafts in the world and it has given Airbus a run for their money with the introduction of very large airplanes. In its initial manufacturing days, the company was majorly a war aircraft producing company but it later shifted to fully developing high capacity airplanes. The 737 mode was among its first best performing commercial airplanes. The 787 Dreamliner is among its most recent aircrafts that has attracted a good reception in the global market (Boeing 2013). The competition in the aircraft business has traditionally based on the capacity