Accounting

A sign of the future is the way corporations are forming to reduce costs and maximize profits.one way corporations are doing this is by forming virtual corporations. Super Bakery is one such virtual corporation.it supplies baked goods to the institutional food market. Out sourced the selling, manufacturing, shipping and warehousing of their products .The staff handles the financials or accounting, marketing and research and development.

After four years of disappointing sales, super bakery came with a strategy to put business to profit. They went to school system food with their low carbs and calorie, tasty foods. Next they decided to refrigerate , vacuum seal and distribute their produce nationally which helped to solidify they national presence .They began to support their customers by providing them with ways to obtain lower prices for certain comodities.Also they began providing prepackaged meals to schools. Lastly the implementation of making super bakery into virtual corporation had helped them to reduce overhead expenses and capital investments.

Super bakery management needed to find a way to report on performance of both nonfinancial activities such as customer service and satisfaction levels and financial activities. Super bakery serves several different customers there by acquiring a large variation in the costs i takes to serve them. They had to decide if they wanted to spread the cost of producing and servicing the product equally among their entire customer base. This is in line with a standard costing system, or to assign exactly what it would cost to produce the product to each individual customer, the activity base costing system.(ABC)