Ch 8 Assignment .# 1 What is the difference between the order-to-cash cycle and the order cycle?The OTC is the same as the order cycle plus the flow of money back to the seller# 2 In your own words, what is activity based costing?This one is hard to put into my own words; it identifies the activities that a firm performs and then assigns costs to products. Only thing I can think that it means is maybe the Holidays, like Christmas, prices always seem to go up on gift products.# 3 How is order management and customer service related?I have been in customer service before and whenever I had to deal with customers. I found myself having to order parts and or products for my customers. In my opinion customer service and order management are related.Current order fill rate: 80%Number of Orders per year: 5,000Percentage of unfilled orders back-ordered: 70%Percentage of unfilled orders cancelled: 30%Back order cost per order: $150Lost pretax profit per cancelled order: $12,500# 4 Of the 5,000 orders, how many are filled correctly (with an 80% fill rate)? 4000# 5 Of the 5,000 orders, how many are not filled?
This is the end of the preview.
access the rest of the document.