A finished ACC-360 Topic 8 quote cost basis memo example, rebuilding a per-board cost into a unit charge and a run charge and showing a sales director which order sizes are mispriced. Searches like "acc 360 topic 8 assignment example", "acc360 topic 8 sample" and "acc-360 topic 8 example" land here.
What a finished ACC-360 Topic 8 quote cost basis memo looks like
The finished memo gives its recommendation before any schedule. Today every board is quoted from one cost of $39: $18 of components plus half a machine hour at the plantwide rate of $42. The memo rebuilds that rate from the illustrative year, $1,680,000 of overhead, and shows that $720,000 of it is setup and first-article inspection, incurred once per run whatever the run's length. Charged that way, a board costs $30 plus $1,800 per run. At 200 boards, the average run, the answer is $39, identical to the current figure. At 100 boards it is $48, so short runs are being quoted $9 below their cost. At 1,000 boards it is $31.80, so long runs carry $7.20 they do not cause. The memo ends by proposing a quote template with the run charge on its own line.
How an ACC-360 Topic 8 example is structured
Written for the person who sets prices, the memo leads with the recommendation and its effect on two typical quotes. The current cost figure is explained next, with where each of its parts comes from, in terms a sales director would use. The year's overhead is then divided into the part that follows machine time and the part that follows production runs, with the figures for each. A table rebuilds the cost of a board at three run lengths and sets each against the current $39. The memo then explains why the single figure has held up, since orders near the average run happen to be priced correctly. Its limits come after that, including facility costs still spread through the machine rate. The final section offers a quote template and names the customer segment likely to notice the change first.
Recommendation before the arithmetic
The sales director reads that quotes should carry a per-board cost and a separate run charge before seeing how either figure was derived.
Overhead split by what causes it
Of $1,680,000, the $720,000 spent on setups and first-article inspection is separated because it arises once per run, not once per board.
Three run lengths, three costs
Boards cost $48 in a run of 100, $39 in a run of 200 and $31.80 in a run of 1,000, which puts the problem in quotable figures.
Why the old figure seemed fine
The single $39 cost is exactly right at the average run, so the error stayed hidden in the orders that matched it and surfaced only at the extremes.
Limits of the new cost stated plainly
Rent and management costs still ride inside the machine rate, and the memo says a finer split would move the per-board figure slightly.
A template the sales team can use
The proposed quote form shows the per-board cost and the run charge on separate lines, so the director can price any order length from it.
Where marks go in ACC-360 Topic 8
Recommending a cost basis without showing its effect on an actual quote leaves this memo short exactly where its reader needs it, since a sales director prices from figures. Memos that explain activity costing in general terms to a sales director address the wrong audience, and the recommendation disappears inside the method. Arguing that the plantwide cost is wrong, when it is right at the average run, overstates the case and invites the obvious rebuttal from sales. Leaving the run charge blended into a per-board figure repeats the original problem at a different level. Papers that never say which orders are mispriced, and in which direction, leave the director unable to act. Treating a change in quoted cost as a change in total cost confuses redistribution with savings, which a finance reader will spot at once.
Get an ACC-360 Topic 8 example written to your instructions
Send the ACC-360 Topic 8 instructions and your classroom rubric, with the cost data and pricing situation in your case. A custom example is written to those criteria for the person who sets prices, with the recommendation first, overhead split by cause, costs at several order sizes, limits stated and a quote format, back in 24 to 48 hours. The first one is free.
ACC-360 Topic 8 questions, answered
Is this a pricing decision or a costing one?
A costing one that a pricing decision will use. The memo does not set the markup or say what the market will bear; it establishes what an order of a given size actually costs to produce, so the person setting prices starts from a sound figure. Keeping that line clear lets the memo stay within cost accounting while still being useful to somebody who sits in sales rather than accounting.
Why present the run charge separately rather than per board?
Because the per-board share of a run charge depends on the order size, which the sales director knows only when a quote is requested. A separate line lets the charge be spread over whatever quantity the customer orders. Folding it into a single per-board figure would require assuming a run length, which is exactly the assumption that made the plantwide rate misleading for short and long orders.
What should the memo say about customers who will pay more?
Name them, briefly, since the director will hear from them first. Customers ordering short runs will see higher quotes, and some may move elsewhere, which the memo should acknowledge rather than hide. Whether to absorb part of the increase is a pricing judgment that belongs to the director. The memo's job is to make sure that judgment is made knowing what those orders actually cost.