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FedEx
My company if FedEx Express, the overnight courier company. The activity that is being studied is the foot courier division, a hypothetical transaction that involves an envelope picked up by a foot courier and shipped domestically. The costs associated with this transaction are primarily allocated to the pick-up side; the delivery side is treated as a fixed cost to the delivering station. Indeed, most of the costs associated with this transaction are fixed costs, once the envelope enters the network on the airplane. Prior to that point, the courier is one cost, reflecting the total costs of the route, and the station is another cost, reflecting the aggregate costs associated with multiple couriers and routes.
The company publishes data for FedEx Express, as follows:
FedEx Express
Q1 YTD
Revenue
Salaries & Benefits
Transportation
Rentals/Landing Fees
Dep/Amort
Fuel
Maintenance &...
If these costs are allocated by share of revenue, FedEx Express would receive 64.3% of these costs. The unallocated costs are as follows (estimates only):
Unallocated Costs
Corporate Management
IT infrastructure
Interest
Total
Express share
61.728
This gives a new income statement with the Express division's share of the unallocated costs as follows:
FedEx Express
Q1 YTD
Revenue
Salaries & Benefits
Transportation
Rentals/Landing Fees
Dep/Amort
Fuel
Maintenance & Repairs
Intercompany charges
Other
Total unallocated…
Works Cited:
FedEx Corporate Q1 Fiscal 2009 statistics. FedEx Corporation. Retrieved April 28, 2012 from http://www.FedEx.com/us/investorrelations/Q1FY09_stat_book.pdf
Score cards for the first level would be handed out and the program and the prizes explained. The start date would be set starting the day that the employee gets their score card. Each score card would require three months of consistent metrics in order to be signed off by the employee's supervisor. Once signed off, that employee receives their rewards at a monthly group award meeting. Works Cited "Case Study:
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