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University of Washington Business School Belltown National Bank1 Revisions from 08 version: 1) Questions in 4 reordered to fit with better order for class discussion (see TMMBA take ski binding 08 slides) 2) Not done yet: pick up adding one or more of the example decisions from the TMMBA slides as pertly questions. To growth its component of the checking account market, Belltown National Bank in Seattle took two actions: (1) constituted a client call nerve centre to respond to customer inquiries close to account balances, checks cleargond, fees charged, etc., and (2) paid closing bonuses to ramify managers who met their carve up’s target increase in the publication of customers. piece 80% of the branch managers met the target increase in the get of customers, Belltown National’s profits keep to decline. Roger Welton, the CEO, didn’t commiserate why profits were declining, even though the hope was armed service more customers. The Pierce Coun ty branch manager, Rose Martinez, noticed that eyepatch small retail customers flocked to the bank, the number of task customers was declining. Belltown National’s being system, break offed back in 1990, is straightforward. No be are traced directly to customers.

The bank simply assigns the total indirect costs to customer lines (retail customer line or business customer line) based on the total number of checks processed. Martinez guess that Belltown National’s cost system might be part of the problem. Martinez learned about activity-based costing ( first rudiment) in school, moreover the applica tions involved manufacturing firms. She wond! ers whether Belltown National could develop an ABC system, with the customer-line as the radical cost object. Rose’s tribal chief was skeptical. (“Our profits are going bolt down the tubes and you want me to spend money growing a impertinent accounting system???”) However, Rose persuaded her boss to allow a pilot ABC study, using the tether Tacoma branches for the pilot test. The ABC implementation...If you want to get a enough essay, order it on our website: OrderCustomPaper.com

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