How much benefit would have been gained by Vermont Teddy Bear by implementing Activity-Based Costing and Activity-Based Management, based on the preceding description of the company's operations?
Vermont Teddy Bear Company was started from a vendor pushcart, where customers could purchase teddy bears decorated for various holidays and events in people's lives. As the company grew, it began to advertise bears on the radio, changing the nature of the ads based on inventory supplies (sell birthday bears instead of Valentine bears). Company sales grew quickly from 400 bears a day to over 5 million units. The company kept up with production by farming out "piecework"
to local Vermont families, some in remote regions of Vermont. If sales for a period increased, the company farmed out more piecework to the community. The pieceworkers would produce a standard bear and the "final touches"
such as type of outfit, glasses, briefcases, etc, would be added after the customer had placed the order. (Source: ABC news video, 11/10/91)
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The Answer of How much benefit would have been gained by Vermont Teddy Bear by implementing Activity-Based Costing and Activity-Based Management, based on the preceding description of the company's operations?
Vermont Teddy Bear Company was started from a vendor pushcart, where customers could purchase teddy bears decorated for various holidays and events in people's lives. As the company grew, it began to advertise bears on the radio, changing the nature of the ads based on inventory supplies (sell birthday bears instead of Valentine bears). Company sales grew quickly from 400 bears a day to over 5 million units. The company kept up with production by farming out "piecework"
to local Vermont families, some in remote regions of Vermont. If sales for a period increased, the company farmed out more piecework to the community. The pieceworkers would produce a standard bear and the "final touches"
such as type of outfit, glasses, briefcases, etc, would be added after the customer had placed the order. (Source: ABC news video, 11/10/91)
Required:

How Much Benefit Would Have Been Gained by Vermont Teddy