Fierce competitive pressure has resulted in shrinking profit margins. Companies may know their overall margin, but they often do not have confidence in the accuracy of the margins for individual products or services. Some are winners and some are losers but which ones? Accurate costs are essential for answering this question. Consider Taylor Corporation, one of the largest specialty printers in the United States with annual sales of more than ＄1.3 billion . Its products include wedding invitations, company stationery, Post-it notes, greeting cards, and calendars. One of its operating divisions implemented an ABC system to provide better information on the profitability of more than 3500 products. Managers used the ABC information to set an optimal product mix and to estimate the profit margins of new products.
- 1 0 年前最佳解答
First of all, you do not know the whole of vocabuary in this paragraph. Just figure key words out and you can understand what the contents of accounting.
shrinking Profit margin means 邊際利益驟減
profitability means 獲利能力
mix means 產品最大的數量
- JohnLv 61 0 年前