Jenis-Jenis Activities dari Case Hadout

No.
1
2
3
4
5
6
7
8
9
10
11
12
Soal:
1.
2.
2.a.
2.b.

Activities
Purchasing Materials
Preparing Materials
Cleaning out previous color
Physical change over -> Set Up
Scheduling production order
Packaging Product
Preparing Shipping document
Preparing inspection
Releasing Materials
Empty the valve
Maintaining records on the 4 products
Shipping products

No.
13
14
15
16
17
18
19
20
21
22
23
24

Tentukan Cost Driver yang dari activities diatas, cost driver yang sama bo
Indentifikasi cost driver biaya pemasaran design of cost management sys
Tentukan cost object apa saja yang dipilih untuk menjadi tempat pembeb
evaluasi cost drivernya yang dipilih untuk membebankan biaya tersebut,

Case Winchell Lighting Inc.

Introduction
In January 1986, Ken Johnson, VP and GM of Winchell Lighting, Inc. (WLI) assigned Pamela Wright, Mar
Marketing Analysis. The Strategic Marketing Analysis effort arose from a collaboration, strating in 198
The goal was to trace marketing cost to individual product lines and channel so that the overall profita
Company Background

Winchell Lighting Inc. memproduksi dan menjual produk-produk lighting. Consumer Linesnya sendiri d
kontrak distribusi dan industrial suppliers.

1985 Income Statement ($00

Sales
Cost of Sales
Material
Labor
Overhead
Gross Profit

$
$
$

45,529.00
7,082.00
32,393.00

Sales and General Administrative Expenses

Marketing Expenses
$
General/administrative
$

20,953.00
10,861.00

Operating Income

Product Lines
1. Consumer Incandescent Fixtures contained a broad range of fixtures designed specifically for easy
The products inclouded pendants, close-to-ceiling fixture, and chandeliers. Residential units were man

2. Consumer Flourescent Fixtures contained a small range of surface-mounted fixture designed specifi

3. Commerical Recessed Fixtures contained fixtures for incandescent bulbs designed to be recessed in
4. Commerical Fourescent Fixtures contained fixtures for fluorescent lighting designed to be recessed

5. Commerical Track contained both track and the fixtures designed to be attached to the tracks. Trac
conventional incandescent, tungstenhalogen, and, recently, compact fluorescent lighting.

6. Commerical Ceiling Fixtures contained high-quality ceiling-mounted fixtures that had a high artistic

7. Commercial Wall Fixtures contained a diverse set of fixtures that were wall mounted. Many of these

8. Commercial External Fixtures contained fixtures specifically designed for external use. These fixture
electrical connections.

Competitive Environment
Sales to the consumer markets generated about 15% of Winchell's total dollar volume. WLI was the on
dominated by 3 U.S. based competitors - Gold, Conway, and Englehart - who together controlled abou
controlling about 70% and imports the other 30% of the market. Most of the U.S. companies used offs
Market Share Analysis-Consumer Products
Flourescent
Competitors
WLI
Gold
Conway
Englehart
Gellis
% of WLI total product
line sales
Incandescent

Mass Merchandisers

Commer
15
30
20
25
10
25

Competitors
WLI
Commonwealth
Celebrity
Imports
% of WLI total product
line sales

Mass Merchandisers

Wholesa
20
25
25
30
30

The commercial Market, accounting for the other 85% of Winchell's revenues, had three other full-line
had gained a respectable % of the track and external fixture markets, respectively.

Recessed
Competitors
WLI
Haddon
Hobart
Conway
Others
% of total product
line sales
Flourescent
Competitors
WLI
Haddon
Hobart
Conway
Others
% of total product
line sales
Track
Competitors
WLI
Haddon
Hobart
Conway
Somerset
% of total product
line sales
Celing
Competitors
WLI
Somerset
Haddon

MARKET SHARE ANALYSIS - COMMERICAL PROD

SHARE BY CHANN
Wholesa

Mass Merchandisers
15
20
20
20
25
70

SHARE BY CHANN
Industr

Contract
10
45
20
20
5
40

SHARE BY CHANN
Industr

Contract
20
20
20
20
20
20

SHARE BY CHANN
Industr

Contract
30
50
15

Others
% of total product
line sales
Wall
Competitors
WLI
Conway
Haddon
Hobart
King
% of total product
line sales
External
Competitors
WLI
Conway
Haddon
Others
% of total product
line sales

5
30

SHARE BY CHANN
Industr

Contract
10
50
25
15
0
20

SHARE BY CHANN
Industr

Contract
50
30
10
10
20

Marketing Channels
The marketing department was organized along functional lines with separate departments for the th
Products. The Commercial Incandescent department supported a full line of fluorescent lighting fixture
department had its own sales force, which sold consumer products to mass merchandisers and whole
WLI sold its products through 6 distinct distribution channels. 2 of these channels, mass merchandiser
The six channel were as follows:
1. Mass merchandiser - Mass merchandisers were the large-volume consumer outlets, such as K-Mart,
fixtures. The mass merchandisers often promoted these products heavily, and WLI provided support fo
in 1985, mass merchandiser sales amounted to apporximately $ 11 million.

2. Wholesale suppliers - Retail hardware chain such as The Value and Ace) had formed cooperative as
used central warehouse to store their bulk-purchased merchandise that would be shipped, in small lot

3. Contract distributors - WLI provided complete lighting system for commercial buildings. To Compete
and timely delivery were critical for this market segment. When an architect asked for a bid, the sales
fixtures for the project. This activity required considerable knowledge of WLI's product lines and of loc
for every fixture in the building. Contract sales were nearly $ 80 millions in 1985. The recessed and flu
the type of fixtures that were to be used, usually a mixture of recessed and fluorescent lights. WLI had

4. Industrial Suppliers - A large protion of the industrial supplier business was replacement of lighting
Master wholesalers such as Mass Gas and Electric and Standard Electrical Supply, specialized in suppl
of products for the building trade. Independent store, such as Commonwealth Light in Boston, carried
high-quality products and timely delivery but did not required specialized or customized products.
Sales persons to industrial suppliers had to be well informed about the company's products. They regu

adequately stocked, and alert the suppliers about building code changes that would affect WLI produc
sales to suppliers totaled $25 million.

5. Government - The US Government occasionally requested a bid for very large volumes of fixtures. O
vendor lists, Sales in 1985, amounted to just over $ 400.000.

6. Original equipment Manufacturers (OEMs) - Certain equipment manufacturers, required special ligh
cabinets, and Lamb Cabiners required fluorescent fixtures for its aluminium and glass display cabinets
acceptively seek out the business. Once a contract was awarded, the OEMs typically sent in large orde

The Strategic Marketing Analysis

In 1982, WLI had adopted a product-channel perspective following a cost study performed with the as
at Hawkes, commented on the process of developing the new product-channel perspective at WLI.

In 1981, the Hawkes planning department initated the development of a strategic data base by busin
could we focus on economic units that were reasonably coherent - that is, units within which we had r
The existing accounting system, which broke the business into about 150 product groupings, falied to
exceeding 15% of sales revenue, management wanted to know how each product line was performing
As we began the initial marketing cost analysis, we quickly learned that tracing period expenses was
be found where actual data do not exist, the same cannot be said of many selling, general, and admin
ments, we relied heavily on the qualitative information stored in the heads of managers who were mo
quantify the qualitative, that is, to convert the qualitative insights of managers into a quantitative mo
We organized a series of meetings to bring together a number of managers from a given function so t
of these sessions was to pose the right questions so that we could discover the principal drivers of cos
judge their reasonableness.
In addition to debriefing knowledgeable managers, we sampled the experience of the sales force to g
acquire the skill we had developed through experience in reducing soft data to a reasonably reliable m
in the relative importance of the cost drivers and of our expenditure of effort among channels. The sy

By 1986, the company had developed specific procedures to facilitate the marketing cost study. The a
or below-the-line cost and not alloocated to individual product lines. The difference in gross margins a
through each channel. In the past, if management wanted to know operating profit after fully allocatin
expenses were about 25% of sales revenue, the operating profit for each channel equalled the gross m

Nett Sales
Material
Labor
Overhead
Total
Gross Profit
Gross Margin

Mass Merchandising
$
$
$
$
$
$
19%

Consumer Wh
10,694.00
8,503.00
29.00
150.00
8,681.00
2,013.00

$
$
$
$
$
$

SG&A
Operating profit
Profit Margin
Net invested capital
RoI

Description of Marketing Expenses

The strategic marketing analysis attempted to trace more accurately the selling and marketing expen
marketing expense category reported in the income statement.
Marketing Expenses by Category (000)
Categoty
1985 Expenses
%
Commission
$
7,376.00
Advertising
$
230.00
Catalog
$
714.00
Co-op Advertising
$
1,006.00
Sales Promotion
$
1,132.00
Warranty
$
94.00
Sales Administration
$
8,957.00
Cash Discount
$
1,444.00
Total
$
20,953.00

35%
1%
3%
5%
5%
1%
43%
7%
100%

Commisions
WLI products were sold on a commission basis by independent manufacturer's representatives. These
they were not allowed to carry directly competitive products.
Representative did not maintain an inventory. They sold to customers, and then WLI shipped the prod
oncandescent products and up to 12 1/2 for fluorescent products. The higher rate for fluorescent sales
WLI commercial products were also slod by company personnel who received a flat 5% commision bu
travel expenses, including any automobile costs. In some instances, a +- 1/2% commission adjustmen

Catalog
The company publised 3 catalogs; fluorescent commercial, incandescent commercial, and consumer.
of new product descriptions. Because the product descriptions did not contain price data, the binder a
Sweet's Catalog, the architect's reference manual for all building materials. WLI paid Sweet's to prepa
WLI's contract sales business used the latest lighting technology and, therefore, required up-to-date c
bestsellers, they could use out-of-date catalogs with little risk. In both instances, products were ordere
copies of the catalogs and passed order requests through to WLI headquarters. Because of the large n
where the catalogs were sent.
The WLI consumer catalog contained 8 to 10 pages listing all product sold in the mass merchandiser a

Advertising
Advertising expenditures were primarily the cost of advertising in trade and industry publiocations, at
publication such as Lighting Institute Magazine, Light Fixture Digest (used by the supplier channel)
Record, were not generally used.
2 of the most noteworthy trade shows attended were the Lighting Fixture Institute Show and the Natio

costs of creating and installing the booth, exhibits, and displays.

Cooperative Advertising
Cooperative Advertising was directed to the consumer market. Mass merchandisers placed calor pullRadio advertisements were used to annouce promotions and special prices.
The advertising Checkin Bureau monitored advertising copy for WLI. It received a supply of sticks, a co
costs up to a cap set a 5% of last year's sales.

Sales Promotion
Sales Promotion were used to increase sales in both the commercial and consumer markets. Some co
points based on the number of specified product items ordered. These points were exchangeable for g
in which the distributor received, say, 12 products for the price of 10. The costs of such promotion sch
Consumer promotions were product specific. They typically consisted of baker's dozen or special disco

Warranty
Warranty expenses were incurred on major contracts to overcome problems that could only be resolve
deduction from sales.

Sales Administration
Sales Administration expenses included costs that were too small to be treated as separate line items

Cash Discount
If WLI shipped before the 25th of the month and payment was received before the 10th of the followin
the discount could be taken if payment was received before the 10th of the second month. About 60%

Tracing Marketing Expenses

Wright and Conrad described the procedures they used for assiging marketing costs to the product lin

PW :
The distribution of Marketing Expenses starts with the document describing each component of expen
behaved, we began to develop allocation routines. Obviously, we relied heavily on the procedures use

Catalog expense was slightly more difficult. We publish 3 catalogs, one for each of the 3 business seg
The WLI commercial catalogs are really a collection of mini poduct line catalogs that we combine toge
catalog without replacing the others. Unfortunately, we do not keep development costs for each produ
This forced us to estimate the relative share of catalog costs by product line and channel.

In contrast, the Sweet Catalog is used only in the contract business. We simply took all of the associat
For catalog that covered several channels, we split catalog costs using the number of different outlets
of sales dollar in each channel.
We assigned the cost of consumer catalogs in the same way. The mass merchandiser only stock a lim
need full-line catalogs, Again we used our knowledge of the number of outlets and the intensity of use

Commission and catalog expenses were relatively easy. Advertising, on the other hand, was more diffi
These 2 types of advertising are quite different from each other.

Cooperative advertising was completely different. First, it predominatly occurs in the 2 consumer chan
could be traced to each channel, which gave us an accurate measure of the advertising expenses in e
Tracing channel Costs to product lins, and there was no easy way to determine how much benefit was
largest image was the company name. The local radio spots suffered from the same problem. We wer
of the ad.

Sales promotions occur at the product and product line level, so we ended up adopting exactly the op
and then to product lines, we traced promotion costs first to product or product lines and then summ
record promotion expenses by product code.

Sales administration is a collection of 9 relatively small expense catagories. We had to deal with each
by others. The allocations all made sense after we looked at them. It was magnitude of the effect that

Allocation of Sale
Consumer (%)
Wholesa

Mass Merchandising
Customer service
Marketing MGMT
Sales Policy
Marketing travel
and entertainment
Postage
Administrative travel
and entertainment
Warehousing
Meeting
Fixed Expenses

1
2
34
8
8
21
5
12
13

The channel Profitability Report is the most important. It demonstrates how significant the marketing
incomes are very different from what we used to think they were

EC:
Commissions were the simplest to handle. We traced commission payments to the various product lin
channel.

We used our knowledge of the business to guide us. For example, we knew that the incandescent com
business is always into new products, and it requires the most up-to-date catalogs, we are continuous
business, the suppliers usually only stock a limited range of the bestsellers. These tend not to change
up to date.

Our catalogs do not contain price information because prices change more frequently than the conten
and distributing these lists was assigned using the same ratios as we had identified for the catalogs th

Trade advertising in the industry magazines could be easily traced to the 3 business segments. First, w
fluorescent products separately. Third, the consumer market is reached by different magazines. The re
that some magazines really only served one channel. For example, The Lighting Ledger
Electrical Suppliers, covered several channels, in which case we estimated the relative benefit by cha

In the end, we opted to use sales within the channel to allocate advertising costs to the product lines.

We used the same approach with warranty expenses. These occur when we have to go into the field a
$ 10.000 then we open a special project. These expenses are easily traced to the channel in which the
line. These can be allocated to the channels on the basis of the sales of each product line in that chan

Cash discounted were allocated to channel by selecting large representative accounts within each of t
the day's-sales-outstanding (DSO). We used the DSOs to estimate the cast discounted in each channe

After performing all the analysis, we produced 2 sets of reports. The first reported the marketing costs
our 6 distribution channels to obtain a new Channel Profitability Report. For the channel report, we als
and accounts receivable, to individual channels so that we could measure the return on capital for eac

Contract (%)
Sales
Material
Labor
Overhead

100%
29.5%
15.3%
25.1%

Total
Gross Margin
Commission
Advertising
Catalog
Co-op advertising
Sales Promotion
Warranty
Sales administration
Cash Discount
Total
General and ADM
Profit Margin

69.9%
30.1%
5.9%
0.2%
0.6%
0.5%
0.5%
0.1%
7.2%
1.1%
16.1%
8.5%
5.5%

Production and Marketing Costs as a %

Commerical Track Lighting
Distribution
Comme
Industrial
1
2

1985 Channel Profitabilty Report

(Marketing Cost Analysis)

5
4

($000)
Consumer
Mass Merchandising
Net Sales
Material
Labor
Overhead
Total
Gross Profit
Gross Margin
Marketing Expenses
Commission
Advertising
Catalog
Co-op Adv
Sales Promotion
Warranty
Sales Adm
Cash Discount
Total
General and Adm
Operating profit
Profit Margin
Net Invested Capital
RoI
Residual Income

Wholesa
10,694
8,503
29
150
8,681
2,013

19%
696
46
36
380
494
2
908
118
2,680
907
(1,574)
-15%

5,447

29%
-2936

Activities
Mixing Ink
Invoicing sales
Inserting inks into pen
Maintain a minimum supply of raw material
Improving the production process
Supplying machine capacity
Payment of material
Collection of A/R
Identifying BOM for each product
Monitoring finished goods inventory
Machine Maintenance
Performing engineering change for products

s, cost driver yang sama boleh digabung

gn of cost management system case Winchell Hal 377.
uk menjadi tempat pembebanan biaya
mbebankan biaya tersebut, apakah sudah benar atau belum, kalau belum tolong berikan saran

ssigned Pamela Wright, Marketing Analyst, and Elizabeth Conrad, Division Controller, to undertake the 1985 WL
ollaboration, strating in 1982, between WLI management and the members of the planning group of WLI's paren
nel so that the overall profitability of each line and channel could be determined.

Consumer Linesnya sendiri dijual melalui mass-merchandisers dan supplier grosiran. Produk Komersil dijual mela

985 Income Statement ($000)

$

127,960.00

100%

$
$

85,004.00
42,956.00

67%
33%

$
$

31,814.00
11,142.00

25%
8%

signed specifically for easy installation In the residential market. They were all Surface mounted, requiring no ca
. Residential units were manufactured to less demanding standards than commercial fixtures and were consider

nted fixture designed specifically for the residential market.

s designed to be recessed into the ceiling.

ng designed to be recessed into the ceiling.

attached to the tracks. Tracks were lenghts of plastic tubing into which the fixtures could be snapped. Track ligh
escent lighting.

ures that had a high artistic content.

wall mounted. Many of these fixtures used the new compact, energy-efficient fluorescent light sources.

r external use. These fixtures were of heavy construction to withstand weather conditions that required waterpr

ollar volume. WLI was the only company in the two almost independent consumer segments. Fluorescent segme
ho together controlled about 70% of the market. The incandescent segment was more competitive, with 3 U.S.
he U.S. companies used offshore sourcing to match the low cost of imported products.

SHARE BY CHANNEL OF DISTRIBUTION

Commercial Suppliers
25
25
20
10
20
50

SHARE BY CHANNEL OF DISTRIBUTION

Contract
10
30
10
40
10
5

Industrial Suppliers
10
25
20
20
25
10

Wholesale Suppliers
20
25
25
30
50

Industrial Suppliers
20
25
25
30
20

ues, had three other full-line producers - Haddon, Conway, and Hobart - plus 2 companies, Somerset and King, th

ALYSIS - COMMERICAL PRODUCTS

SHARE BY CHANNEL OF DISTRIBUTION
Wholesale Suppliers
15
25
10
30
20
20

Industrial Suppliers
15
25
10
30
20
10

SHARE BY CHANNEL OF DISTRIBUTION

Industrial Supplier
15
45
5
25
10
25

Government
20
35
5
25
15
15

OEM
10
75
5
0
10
20

SHARE BY CHANNEL OF DISTRIBUTION

Industrial Supplier
20
20
20
20
20
25

Government
20
20
20
20
20
15

OEM

SHARE BY CHANNEL OF DISTRIBUTION

Industrial Supplier
30
50
15

Government
20
50
25

OEM
30
50
10

5
20

5
20

SHARE BY CHANNEL OF DISTRIBUTION

Industrial Supplier
20
10
40
20
10
20

OEM
10
25
50
5
10
60

SHARE BY CHANNEL OF DISTRIBUTION

Industrial Supplier
50
30
10
10
20

Government
60
5
25
10
45

5
30

OEM
50
30
10
10
15

rate departments for the three major business segments: Commerical Incandescent, Commerical Fluorescent, a
of fluorescent lighting fixtures and sold them to the commerical market through a separate sales force. The Con
s merchandisers and wholesales suppliers.
hannels, mass merchandisers and wholesale suppliers, served the consumer market, and the 4 served the comm

mer outlets, such as K-Mart, Caldor, and Zayre, that sold directly to the public. They typically carried a small ran
and WLI provided support for this activity. WLI favored these companies with a liberal returns policy and deep c

had formed cooperative associaltions to obtain bulk discounts based on their combined purchasing power. The
ould be shipped, in small lots, to member on request. In 1985, WLI's sales to wholesale suppliers were $ 3 millio

ercial buildings. To Compete in this market, WLI employed highly skilled marketing personnel who worked close
ct asked for a bid, the salesperson examined the architect's building plans and generated a complete list of ligh
LI's product lines and of local fire, building, and electrical codes. The end document provided a detailed specific
n 1985. The recessed and fluorescent product lines' sales were not independent in the contract channel. Archite
d fluorescent lights. WLI had little real influence on the type of fixture selected.

was replacement of lighting fixtures. Building owners and operators purchased their lighting fixture from 2 type
Supply, specialized in supplying lighting fixtures to smaller distributors, such as Mass Hardware, who carried a b
alth Light in Boston, carried a larfe variety of fixtures sold directly to the end users. The independent stores dem
or customized products.
mpany's products. They regularly called on suppliers to take inventory, assist in the preparation of orders to kee

hat would affect WLI products. Intermediary agents and distributors, if applicable, were also involved in this pro

large volumes of fixtures. Over the years, WLI had not placed much effort into getting listed on the governeme

cturers, required special light flixtures for their products. For example, Sampson Furniture needed recessed fixtu
m and glass display cabinets. Since this kind of company was difficult to identity, WLI responded to bid requests
s typically sent in large orders a t regular intervals. Sales in 1985 amounted to just over $ 9 million.

study performed with the assistance of the Hawkes Strategic Planning Group. Douglas Farish, Vice-President of S
nnel perspective at WLI.

trategic data base by business segment. Each Hawkes business was partitioned into much finer system. Only b
units within which we had roughly the same share, perceived quality, and profitability.
product groupings, falied to reflect the different costs of doing business in each distribution channel. With mark
product line was performing in total and by channel. Thus, the product-channel perspective was developed.
acing period expenses was more difficult than allocating factory overhead. While in the factory, proxies for cost
y selling, general, and administrative activities. To understand the economics of how work was generated in the
s of managers who were most familiar with the activity of each departement. The art of this sort of analysis is to
agers into a quantitative model.
rs from a given function so that different perspective on the same issue could be represented. My primary funct
r the principal drivers of cost. I also systhesized the estimates given me and fed them back to the managers so

ence of the sales force to gather qualitative data for the model-building effort. Ultimately, I wanted WLI manage
ta to a reasonably reliable model. This was important because the system needs to be revised periodically to re
ort among channels. The system therefore must not be rigid, but rather capable of evolving with the business.

marketing cost study. The analysts strated from a channel profitability report in which SG&A expenses were trea
ifference in gross margins across the 6 channels reflected the margins earned over manufacturing costs on the
ng profit after fully allocating all costs, the cost analysts had allocated SG&A costs based on sales revenue. Sinc
channel equalled the gross margin % less 25%.
Channel Profitability Report
(Existing System $000)
Consumer Wholesale Suppliers
3,120.00
2,083.00
63.00
268.00
2,413.00
707.00
23%

Contract
$ 79,434.00
$ 25,089.00
$ 4,798.00
$ 22,172.00
$ 55,029.00
$ 27,375.00
34%

Industrial Suppliers
$
25,110.00
$
6,886.00
$
1,437.00
$
6,503.00
$
14,826.00
$
10,284.00
41%

elling and marketing expenses to indivudal channel and product lines. The analysis strated from detailed descr

rer's representatives. These representatives often carried a complementary line of products manufactured by ot

then WLI shipped the product directly to the customers. The manufacturing representative received a 5% comm
her rate for fluorescent sales reflected in historical attempt to increase sales in certain fixture lines.
ved a flat 5% commision but no base salary. WLI paid benefits such as health, pension, and FICA. Sales personne
1/2% commission adjustment was made to compensate for the size of the salesperson's territory.

ommercial, and consumer. The commercial catalogs were published as 3-ring binders to facilitate easy updating
tain price data, the binder arrangement also allowed for price list supplements as required. WLI products were e
s. WLI paid Sweet's to prepare and include separate subsections in the Sweet's Catalog.
efore, required up-to-date commercial catalog information. Industrial suppliers also used placement business an
ances, products were ordered just as specified in the catalogs: Unique design could not be obtained. All WLI rep
rters. Because of the large number of requested for the catalogs, no records were kept at headquaters or by rep

in the mass merchandiser and wholesale supplier channels.

d industry publiocations, attendance at trade shows, and the costs of displays and exhibits. The firm placed adv
by the supplier channel) Discount News, Do It Yourself, and the Hardware Retailer. Peripheral journals, such as

nstitute Show and the National Hardware Show. The advertising expenses for these shows included registration

handisers placed calor pull-outs in Sunday newspapers. Local hardware stores placed smaller advertisements in

eived a supply of sticks, a copy of the advertising bill, and a proof of the advertising. WLI then paid the advertise

onsumer markets. Some commercial promotions offered incentives to distributor to purchase WLI products by a
nts were exchangeable for gift certificates or merchandise at a major department store. Others offered baker's d
costs of such promotion schemes included developing, printing, and distributing brochures, mailings, and order
aker's dozen or special discount offers to mass merchandisers and wholesale suppliers.

ms that could only be resolved in the filed. Sales returns were not included in warranty expenses but were treate

eated as separate line items. (Sheet Sales Administration)

fore the 10th of the following month, the customer could take a 2% discount. If WLI shipped after the 25th of th
e second month. About 60% of goods were shipped during the first 25 days of each month.

ting costs to the product lines and distribution channels.

g each component of expense. It formed the basis for our analysis. After we were sure we understood how each
avily on the procedures used in prior years.

each of the 3 business segments, It is easier to talk about the commerical and consumer segments separately.
alogs that we combine together in a 3-ring binder. This approach is economical because it allows us to change 1
opment costs for each product line catalog separately, so we could not break it down any further than the catalo
ne and channel.

mply took all of the associated costs for this catalog and assigned them to the contract channel.
number of different outlets in each channel as the allocation base. We assigned catalog costs to the product lin

erchandiser only stock a limited range of products and do not need a large catalog. But the wholesalers, who sto
tlets and the intensity of use in each channel to estimate their relative share of catalog costs.

e other hand, was more difficult because of the range different activities we undertake. We broke advertising in

curs in the 2 consumer channels, mass merchandising and wholesale suppliers. Second, the Advertising Checkin
he advertising expenses in each channel.
mine how much benefit was attributable to each line. It was simply not practical to count square inches, in any c
the same problem. We were not going to count seconds, and anyway the company name was often the most p

up adopting exactly the opposite approach than we had taken for advertising. Instead of tracing costs to the se
oduct lines and then summed up the costs for each product line in a channel. This was relatively straightforward

s. We had to deal with each one separately. We were surprised by how much resources were required by some c
magnitude of the effect that was unexpected.

Allocation of Sales Administration Expenses to Channel

Consumer (%)
Wholesale Suppliers
Contract
16
38
10
60
28
30

Commercial (%)
Industrial Suppliers
43
10
8

44
35

43
35

5
23

15
21
12
18

42
60
42
50

21
14
35
20

w significant the marketing cost analysis really is. The resulting channel profitabilities, return on investment, and

ts to the various product lines and then allocated them to channel on the basis of the sales volume of product li

w that the incandescent commercial catalog is used in the contract and industrial supply channel. However, the
catalogs, we are continuously sending them catalogs. The industrial supply channel is exactly the opposite. In th
s. These tend not to change from year to year, and consequently industrial suppliers are not bothered if their ca

e frequently than the contents of the catalogs. We issue a new price list whenever we want to change prices. Th
identified for the catalogs themselves.

3 business segments. First, we have project control over all advertising-related costs. Second, we advertise incan
different magazines. The real problem was how to allocate the costs among the channels served by each maga
ghting Ledger served industrial suppliers and Discount Store News reached mass merchandisers. Other magazin
d the relative benefit by channel and allocated the costs accordingly.

g costs to the product lines.

e have to go into the field and correct a problem that has developed in a large commercial contract. If the expe
d to the channel in which they occurred. However, if the expenditure is below $ 10.000 then the cost are capture
ach product line in that channel.

ve accounts within each of the channels and determining their accounts-receivable-to-sales ratio. From these ra
t discounted in each channel.

eported the marketing costs as a % of sales for each major product line. The second added up all the marketing
r the channel report, we also traced the utilization of net invested capital, including working capital items such
the return on capital for each channel.

and Marketing Costs as a % of Sales

ommerical Track Lighting
Distribution Channel
Commercial
Industrial Suppliers (%)
100%
28.6%
6.5%
22.0%
57.1%
42.9%
5.4%
0.2%
0.6%
0.5%
0.5%
0.1%
6.8%
1.0%
14.7%
8.5%
19.7%

Government (%)
100%
34.4%
8.6%
33.0%
76.0%
24.0%
2.8%
0%
0%
0%
0%
0%
4.7%
2.8%
10.3%
8.5%
5.2%

OEM (%)
100%
35.3%
8.5%
28.2%
72.0%
28.0%
4.0%
0%
0%
0%
0%
0%
3.8%
1.2%
9.1%
8.5%
10.4%

Consumer
Wholesale Suppliers
3,120
2,083
62
268
2,413
707

Industrial Suppliers
25,110
6,886
1,437
6,503
14,826
10,284
41%

270
12
14
90
128
2
268
56
840
265
(398)

1,344
38
160
120
114
22
1,714
252
3,764
2,131
4,389

23%

-13%

17%
1,643

-24%
-809

Commercial
Government
402
99
33
154
286
116
29%
12
20
12
44
36
36
9%

10,974
40%
1646

184
30%
10

ndertake the 1985 WLI Strategic

g group of WLI's parent, Hawkes.

uk Komersil dijual melalui

ounted, requiring no carpentry work.

res and were considerably cheaper.

be snapped. Track lighting used

ght sources.

s that required waterproof

nts. Fluorescent segment was

mpetitive, with 3 U.S. Companies

Goverrnment
25
20
20
30
5
5

OEM
15
25
30
30
0
5

Somerset and King, that

merical Fluorescent, and Consumer

e sales force. The Consumer

the 4 served the commercial market.

ally carried a small range of lighting

urns policy and deep cash discount.

purchasing power. The association

uppliers were $ 3 million.

nnel who worked closely with architects. High-quality products

d a complete list of lighting
ded a detailed specification
ntract channel. Architects selected

ng fixture from 2 type of wholesalers.

dware, who carried a broad range
dependent stores demanded

ration of orders to keep the suppliers

so involved in this process. In 1985,

ted on the governement's acceptable

needed recessed fixtures for glass

onded to bid requests but did not
$ 9 million.

sh, Vice-President of Strategic Planning

h finer system. Only by disaggregating

on channel. With marketing expenses

ve was developed.
ctory, proxies for cost drivers can often
was generated in the SG&A departhis sort of analysis is to be able to

nted. My primary function as moderator

ck to the managers so that they could

, I wanted WLI management to

vised periodically to reflect changes
ng with the business.

&A expenses were treated as a common

facturing costs on the products sold
on sales revenue. Since SG&A

$
$
$
$
$
$

Commercial Government
OEM
Total
402.00 $ 9,200.00 $ 127,960.00
99.00 $ 2,869.00 $ 45,529.00
33.00 $
724.00 $
7,084.00
154.00 $ 3,146.00 $ 32,393.00
286.00 $ 6,739.00 $ 87,974.00
116.00 $ 2,461.00 $ 42,956.00
29%
27%
34%

ed from detailed descriptions of each

ts manufactured by other firms, but

ve received a 5% commission for

ure lines.
d FICA. Sales personnel absorbed all

acilitate easy updating and insertion

d. WLI products were endorsed by

placement business and only stocked

e obtained. All WLI representative kept
headquaters or by representatives on

ts. The firm placed advertisements in

eral journals, such as Architectural

s included registration fees and the

$
$
$

31,814.00
11,142.00
9%
54,141.00
21%

aller advertisements in local papers.

then paid the advertisers for their

ase WLI products by awarding

Others offered baker's dozen sales.
s, mailings, and order forms.

penses but were treated as a direct

ed after the 25th of the month,

e understood how each expense

segments separately.
t allows us to change 1 product line
further than the catalog level.

costs to the product lines on the basis

e wholesalers, who stock our entire line,

We broke advertising into 2 sections, trade and coorperative.

he Advertising Checking Bureau invoices

square inches, in any case, in many ads, the

was often the most prominent part

tracing costs to the segments or channels,

atively straightforward because we

ere required by some channels and not

Commercial (%)
Government
1
0
0

OEM
1
0
3

0
0

5
0

0
0
0
0

0
0
0
0

urn on investment, and residual

es volume of product lines in each

hannel. However, the contract

ctly the opposite. In the replacement
not bothered if their catalogs are not

t to change prices. The expense of printing

ond, we advertise incandescent and

s served by each magazine. We felt
ndisers. Other magazines, for example

al contract. If the expenditure is above

en the cost are captured only by product

es ratio. From these ratios, we computed

d up all the marketing costs in each of

ng capital items such as inventory

Commercial
Government
OEM
Contract Total
402
9,200
79,434
127,960
99
2,869
25,089
45,529
33
724
4,798
7,083
154
3,146
22,172
32,393
286
6,739
52,059
85,004
116
2,461
27,375
42,956
29%
27%
34%
34%
12
20
12
44
36
36
9%
184
30%
10

372
2
2
4
351
114
845
781
835
9%
2,748
30%
149

4,682
132
504
416
394
64
5,696
892
12,780
6,740
7,855
10%
33,154
24%
-433

7,376
230
714
1,006
1,132
94
8,957
1,444
20,953
10,860
11,143
9%
54,150
21%
(2,373)

Allocation of Sales Administration Expenses

Customer service. Customer service involved order entry and editing using an online system. The larg
and contractors, who, while only placing a small numbers of orders, required much telephoning back a
and the government, required little attention.

Customer service expenses were allocated on the basis of management estimates. Contractor and ind
concentrated in those 2 channels.

Marketing management. Marketing management expenses were the salaries of all of the managers in

Marketing management expenses were allocated proportionally to the time spent by the managers. F
more difficult for support function managers because their activities were firm-wide (research manage
Otherwise, they were allocated on the basis of sales dollars.

Sales Policy. Sales Policy expenses arose from settling disputed claims. Mass merchandisers had the la
mistakes. They used their large outstanding receivable balances as leverage against the firm and wou
sense approach on whether to fight. Contractors similarly disputed pricing, shrinkage, and any shrorta
the industrial suppliers, raised similar issues but to a lesser extent.

Sales policy expenses were first traced to the 3 business segments and then allocated to the channels
relative sales dollars.

Marketing travel and entertainment. Marketing travel and entertainment expenses consisted of the tr
because there were no regional managers, large individual contracters, the competitiveness of the bu
The other channels required relatively little travel, typically only for shows and other events.

Marketing travel and entertainment expenses were traced to the person that filled the expense report
example, the contractor channel, because there are no regional managers. These costs were allocated
Postage. The majority of postage expenditures were related to catalog mailings. They were allocated

Administrative travel and entertainment. Administrative travel and entertainment expenses are the c
contractors, mass merchandisers, and industrial suppliers. The 3 individuals that charge to this line ite

Warehousing. Warehousing expenses were the costs of keeping finished goods inventory in the wareh
level of each product line and to the channels by relative sales level.

Meetings. Meeting expenses were incurred for the firm's regular national sales meetings. The costs of
on the basis of managerial estimates.

Fixed Expenses. Fixed Expenses consisted of a number of different items such as depreciation, heat, l
The expenses were allocated to each segment by department using a number of different allocation

line system. The largest users were the industrial suppliers, who placed many small orders, thereby creating a l
ch telephoning back and forth to establish the correct mixture of products. Other users, such as the OEMs, mass

s. Contractor and industrial suppliers received the highest amounts because most of the customer service activ

ll of the managers in the marketing department.

t by the managers. For functional managers this was relatively easy because they were assigned to particular se
de (research manager and pricing manager). Where possible, the costs of these activities were traced to the ch

chandisers had the largest numbers of disputed orders, typically complaining about short shipments and other
nst the firm and would withhold payment until all issues relating to the shipment were settled. The firm used a
age, and any shrortages of the trivial accessories, such as screws, that accompanied their orders. Other channe

cated to the channels using managerial estmates. Within the channels, they were allocated to the product lines

es consisted of the travel expenditures of the marketing managers. The contract business required extensive tra
etitiveness of the business, and the technical complexity required a lot of handholding and entertainment by m
her events.

d the expense report and hence to the business segment. Certain channels required more travelling than others
costs were allocated using a mixture of managerial estimates and sales lars.

They were allocated on the basis of the catalog expenses in each channel.

t expenses are the costs incurred when the director of marketing, the pricing manager, or marketing analyst tra
charge to this line item were asked to estimate the % of their share of these costs by channel.

ventory in the warehouse ready for shipment. These costs were allocated to the product lines based on the inve

eetings. The costs of national sales meetings were tracked to the 3 business segments and then allocated to the

depreciation, heat, light, and power, telephone, building maintenance, suppliers and equipment rental charges
different allocation routines and then to the channels using managerial jdugement.

, thereby creating a lot of paperwork

h as the OEMs, mass merchandisers,

ustomer service activity was

igned to particular segments. It was

were traced to the channel.

hipments and other shipment

led. The firm used a common
orders. Other channels, such as

to the product lines using

equired extensive travel

entertainment by management.

travelling than others- for

marketing analyst traveled to meet

es based on the inventory

then allocated to the channels

ment rental charges.

No.
1
2
3
4
5
6
7
8
9
10
11
12

Activities
Purchasing Materials
Preparing Materials
Cleaning out previous color
Physical change over -> Set Up
Scheduling production order
Packaging Product
Preparing Shipping document
Preparing inspection
Releasing Materials
Empty the valve
Maintaining records on the 4 products
Shipping products

No.

Jenis-jenis Cost Driver

Transaction Driver
Duration Driver
No.

11
12

Activity
Purchasing Materials
Scheduling production order
Cleaning out previous color and empty the valve
Preparing inspection
Releasing materials and mixing ink
Inserting inks into pen
Psysical change over -> Set Up
Preparing materials and maintain a
minimum supply of raw material
Maintaining record on the 4 products
Performing engineering change for
products and indentifying BOM for
each product
Monitoring finished goods inventory
Machine maintenance

13
14
15
16

Supplying machine capacity

Invoicing Sales and AR Collection
Preparing Shipping Document
Packaging Product and shipping product

1
2
3
4
5
6
7
8
9
10

SIMPLIFICATION OF ACTIVITIES
No.
Activity
1 Purchasing Materials

13
14
15
16
17
18
19
20
21
22
23
24

2
3
4
5
6
7
8

11
12

Scheduling production order

Cleaning out previous color and empty the valve
Preparing inspection
Releasing materials and mixing ink
Inserting inks into pen
Psysical change over -> Set Up
Preparing materials and maintain a
minimum supply of raw material
Maintaining record on the 4 products
Performing engineering change for
products and indentifying BOM for
each product
Monitoring finished goods inventory
Machine maintenance

13
14
15
16

Supplying machine capacity

Invoicing Sales and AR Collection
Preparing Shipping Document
Packaging Product and shipping product

9
10

Activities
Mixing Ink
Invoicing sales
Inserting inks into pen
Maintain a minimum supply of raw material
Improving the production process
Supplying machine capacity
Payment of material
Collection of A/R
Identifying BOM for each product
Monitoring finished goods inventory
Machine Maintenance
Performing engineering change for products

Cost Driver
Number of ink bottle
Minutes to scheduling
Minutes to wash out the valve
Minute to inspect
Number of ink bottle
Number of pen produced
Minutes to set up
Number of ink bottle

Type of Driver
Transaction Driver
Duration Driver
Duration Driver
Duration Driver
Transaction Driver
Transaction Driver
Duration Driver
Transaction Driver

Minute to record the amount of each product

Number of spare part
Minutes to identifying BOM

Duration Driver
Transaction Driver
Duration Driver

Minutes to monitoring
Minutes of Machine's operational capacity
until overhaul (Machine Hours)
Machine Hours
Number of Pen produced
Number of Pen produced
Number of Pen produced

Duration Driver
Duration Driver

Grouping of Activities
Scheduling Production Runs

Cost Driver
Number of Production Runs

Duration Driver
Transaction Driver
Transaction Driver
Transaction Driver

Scheduling Production Runs

Physical changeover
Scheduling Production Runs
Scheduling Production Runs
Physical changeover
Physical changeover
Maintaining Records

Number of Production Runs

Setup time
Number of Production Runs
Number of Production Runs
Setup time
Setup time
Number of Products

Maintaining Records
Maintaining Records

Number of Products
Number of Products

Maintaining Records
Supplying machine capacity

Number of Products
Machine Hours

Supplying machine capacity

Maintaining Records
Maintaining Records
Scheduling Production Runs

Machine Hours
Number of Products
Number of Products
Number of Production Runs

Type of Driver
Transaction Driver

Transaction Driver
Duration Driver
Transaction Driver
Transaction Driver
Duration Driver
Duration Driver
Transaction Driver
Transaction Driver
Transaction Driver

Transaction Driver
Duration Driver
Duration Driver
Transaction Driver
Transaction Driver
Transaction Driver

Tentukan cost object apa saja yang dipilih untuk menjadi tempat pembebanan biaya
Type of Cost
Marketing Expense

Cost Objects
Marketing Channels
Mass Merchandisers
Wholesale suppliers
Contract distributors
Industrial suppliers
Government
Original Equipment Manufacturers
Product Lines
Consumer Incandescent Fixtures
Consumer Flourescent Fixtures
Commercial Recessed Fixtures
Commercial Fluorescent Fixtures
Commercial Track
Commercial Ceiling Fixtures
Commercial Wall Fixtures
Commercial External Fixtures

embebanan biaya
Type of Cost
Sales Administration Expense

Cost Objects
Marketing Channels
Mass Merchandisers
Wholesale suppliers
Contract distributors
Industrial suppliers
Government
Original Equipment Manufacturers
Product Lines
Consumer Incandescent Fixtures
Consumer Flourescent Fixtures
Commercial Recessed Fixtures
Commercial Fluorescent Fixtures
Commercial Track
Commercial Ceiling Fixtures
Commercial Wall Fixtures
Commercial External Fixtures
Business Segments

2.b

Evaluasi cost drivernya yang dipilih untuk membebankan biaya tersebut, apakah sudah be

Cost Object
Marketing Channels
Customer:
Mass Merchandisers

Wholesale suppliers

Contract distributors

Industrial suppliers

Government

Original Equipment Manufacturers

Product Lines
Fixtures:
Consumer Incandescent Fixtures
Consumer Flourescent Fixtures

Commercial Recessed Fixtures

Commercial Fluorescent Fixtures

Commercial Track

Commercial Ceiling Fixtures

Commercial Wall Fixtures

Commercial External Fixtures

ya tersebut, apakah sudah benar atau belum, kalau belum tolong berikan saran

Cost Pool
Marketing Expenses
1. Commision Expense

2. Catalog Expense

3. Advertising Expense

4. Cooperative Advertising Expense

5. Sales Promotion Expense

6. Warranty Expense

7. Cash Discounts Expense

General & Administration Expense

8. Customer Service Expense

9. Marketing Management Expense

10. Sales Policy Expense

11. Marketing Travel and Entertainment Expense

12. Postage Expense

13. Admin Travel and Entertainment Expense

14. Warehousing Expense

15. Meetings Expense

16. Fixed Expense

m tolong berikan saran

Cost Drivers

Sales volume in the product line

- Semua Sweet Catalog Expense dialokasikan ke

Channel "Contract Distributor'
- Catalog Expense yang mencakup beberapa channel
dialokasikan menggunakan cost driver sales dollar
pada setiap channel berdasarkan jumlah outlets

Sales volume in each channel

Tidak menggunakan cost driver karena Cooperative

Advertising Expense dapat langsung dialokasikan ke
channel (Mass Mechandising dan Wholesale Supplier).
Tidak menggunakan cost driver karena Sales
Promotion Expense dapat langsung dialokasikan ke
product line.
- Expenditure lebih dari $10,000 tidak menggunakan
cost driver karena dapat langsung dialokasikan ke
channel yang bersangkutan
- Expenditure kurang dari $10,000 dialokasikan
menggunakan cost driver Sales Volume product line
pada channel

Day's Sales Outstanding (DSO) large representative

accounts pada setiap channel

Tidak menggunakan cost driver. Biaya dialokasikan

sesuai estimasi manajemen berdasarkan besarnya
konsentrasi customer service untuk masing-masing
channel.

- Marketing management expense untuk functional

manager tidak menggunakan cost driver karena dapat
langsung dialokasikan ke channel berdasarkan
fungsinya yang terpisah
- Marketing management expense untuk support
function manager, bila memungkinkan, dapat
dialokasikan ke masing-masing channel, apabila tidak,
maka dialokasikan berdasarkan sales dollars

Biaya dialokasikan ke masing-masing channel sesuai

estimasi manajemen, lalu dialokasikan ke product line
berdasarkan sales dollars.

- Marketing travel & entertainment expense yang

dapat ditelusuri ke orang yang mengajukan expense
report dapat dialokasikan ke channel yang
bersangkutan
- Marketing travel & entertaimnet expense yang tidak
dapat ditelusuri ke orang yang mengajukan expense
report (karena tidak ada regional manager), maka
dialokasikan berdasarkan kombinasi antara estimasi
manajemen dan sales dollar.

Jumlah Catalog Expense masing-masing channel

Biaya dialokasikan ke masing-masing channel sesuai
estimasi Director of Marketing, Pricing Manager,
Marketing Analysts
Inventory level masing-masing product line, lalu
dialokasikan ke masing-masing channel berdasarkan
sales level
Biaya dialokasikan berdasarkan estimasi manajemen.

Biaya dialokasikan oleh masing-masing departemen

sesuai rutinitas, lalu dialokasikan ke masing-masing
channel berdasarkan managerial judgment.

Evaluasi & Saran

Commision expense terbagi menjadi 2, yaitu: commision expense untuk consumer fixture dan
commercial fixture. Cost driver untuk commision expense consumer fixture yang dipilih adalah
number of sales volume in the product line sudah benar. Namun, diketahui bahwa commision
expense untuk commercial ficture adalah flat 5% dan dapat mencapai 12% commision
adjustment, biayanya tidak berubah berdasarkan number of sales, sehingga sebaiknya commision expense
untuk commercial fixture dikategorikan ke dalam Channel Expenses.

- Semua Sweet Catalog Expense dialokasikan ke Channel "Contract Distributor' sudah

dialokasikan dengan benar
- Catalog Expense yang mencakup beberapa channel dialokasikan menggunakan cost driver sales
dollar in each channel berdasarkan jumlah outlets tidak sepenuhnya benar, karena misalnya
untuk Catalog Expense Incandecent Commercial sebaiknya dialokasikan seluruhnya ke Channel
Contract Distributor karena berdasarkan pengamatan yang dilakukan Channel Industrial Supplier
tidak membeli fixtures berdasarkan katalog.
- Untuk channel lainnya yang tidak didedikasikan menggunakan katalog dapat dialokasikan
dengan cost driver sales dollar pada setiap channel berdasarkan jumlah outlets.

Tidak setuju. Advertising Expense berupa publikasi di majalah dan acara show tidak dapat
ditelusuri dengan akurat ke product line dan channel, sehingga sebaiknya Advertising Expense
dikategorikan kedalam "Channel Expenses".
Setuju.

Setuju. Hal ini didukung dengan sistem pencatatan Sales Promotion Expense berdasarkan product
code.
Setuju. Mempertimbangkan Warranty expense secara total hanya 1% dari total marketing
expense.

Setuju. Namun perlu diberi batasan spesifik mengenai larga representative accounts berupa
jumlah sales dollar

Tidak setuju. Alokasi Customer Service Expense tidak dialokasikan berdasarkan data kuantitas,
sehingga kurang akurat. Maka sebaiknya Customer Service Expense dikategorikan sebagai
"Channel Expense".

Tidak setuju. Alokasi marketing management expense untuk support function manager sebaiknya
dikategorikan sebagai "Channel Expense" karena pengalokasian dengan cost driver yang tidak
tetap dapat menciptakan kebingungan dan kemungkinan tidak akuratnya pengalokasian semakin
besar. Selain itu, pengalokasian berdasarkan sales dollar kurang tepat karena product line dengan
harga yang lebih mahal cenderung akan mendapat alokasi biaya lebih besar, padahal tidak
secara otomatis berhubungan dengan gaji manager.

Tidak setuju. Alokasi Sales Policy Expense tidak dialokasikan berdasarkan data kuantitas,
sehingga kurang akurat. Maka sebaiknya Sales Policy Expense dikategorikan sebagai "Channel
Expense". Selain itu, pengalokasian berdasarkan sales dollar kurang tepat karena product line
dengan harga yang lebih mahal cenderung akan mendapat alokasi biaya lebih besar, padahal
tidak secara otomatis berhubungan dengan tingkat dispute claim.

Tidak setuju. Alokasi Marketing travel & entertainment expense sebaiknya dikategorikan sebagai
"Channel Expense" karena pengalokasian dengan cost driver yang tidak tetap dapat menciptakan
kebingungan dan kemungkinan tidak akuratnya pengalokasian semakin besar. Selain itu,
pengalokasian berdasarkan sales dollar kurang tepat karena product line dengan harga yang lebih
mahal cenderung akan mendapat alokasi biaya lebih besar, padahal tidak secara otomatis
berhubungan dengan kenaikan/penurunan marketing travel & entertainment expense, seperti
Government channel yang menghasilkan sales dollar paling kecil mungkin saja mengeluarkan
biaya entertainment yang cukup besar.

Setuju. Karena dijelaskan bahwa mayoritas Postage Expense adalah untuk Catalog.
Tidak setuju. Alokasi Admin travel & entertainment Expense yang dialokasikan berdasarkan
estimasi adalah kurang akurat dan cenderung menghasilkan alokasi yang subyektif dari masingmasing director/manager. Maka sebaiknya Admin travel & entertainment Expense dikategorikan
sebagai "Channel Expense".
Setuju.

Tidak setuju. Alokasi Meeting Expense yang dialokasikan berdasarkan estimasi adalah kurang
akurat dan cenderung menghasilkan alokasi yang subyektif. Selain itu, meeting expense
merupakan corporate level expense. Maka Meeting Expense dikategorikan sebagai "Channel
Expense".
Tidak setuju. Alokasi Meeting Expense yang dialokasikan berdasarkan managerial judgment
adalah kurang akurat dan cenderung menghasilkan alokasi yang subyektif. Selain itu, Fixed
Expense merupakan biaya tetap yang tidak berubah seiring dengan kenaikan/penurunan sales
dari masing-masing channel. Maka Fixed Expense dikategorikan sebagai "Channel Expense".