Solved: Read Nike s 10 K in Appendix C Item 1 describes

its
Read Nike s 10 K in Appendix C Item 1 describes its

Read Nike’s 10-K in Appendix C. Item 1 describes its business, especially in the United States.
A simplified description of Nike’s supply chain follows:

1. What kind of production system and associated costing system would you expect at the
contract manufacturers? Nike distribution centers? How many distribution centers does Nike
operate in the United States? Where are they located? How many retail accounts are in the
United States?
2. Suppose Nike is implementing an ABC system to improve its accounting for overhead costs
at its Memphis facility. Some of the activities performed at a Nike distribution center are listed
below, along with a resource used by each activity. Because each of the resources is also used
by more than one activity, its cost must be allocated. For each of the activities-resource pairs,
suggest a plausible cost-allocation base that could be used to allocate the resource cost to the
activities.
Activities ............................ Resource Used
Receiving, put away apparel, picking products to fill an order, loading
pallets onto trucks for shipment .......... ..Forklift
Receiving, put away apparel, repacking in boxes, repacking in cartons,
shipping ................. ..Occupancy costs
Supplies ordering, customer order processing, invoicing and payment for
parcel deliveries ............. Variable computercosts

Read Nike s 10 K in Appendix C Item 1 describes its

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