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ABC MODEL FOR Brambles Limited


ABC Model and Its Features:

The ABC model for accounting stands for activity based costing system. This is the most advanced way to measure the activity of a firm and allocate funds as per the activity level. With the activity based accounting system the indirect and direct cost of the production of the product can be controlled. In this assignment, the supply-chain logistics group Brambles Limited have been taken. The ABC systems are also known as the linking factor between cost and activity of the firm and the products (Cokins, 2014). The main objective of every firm is to produce best quality goods in less cost for optimum level of consumer satisfaction. Achieving sustainable growth is the primary aim of every organization, and the ABC model of accounting can help the organizations to achieve that.

Organizations like Brambles Limited have interest in dealing with unit-load equipment and associated services. They deal with different types of associated services and they also have interest in logistic as well. The supply-chain logistics group is a lucrative market, and these are being used for making high-end products like laptop, cell phones etc. though, this market is highly risky as well (Cokins, 2014).

The ABC model will help the organizations to identify and eliminate the non-profit goods and services effectively. The ABC model of accounting can estimate the profitability of the product, and help the firm to take decisions regarding that product. Some costs are critical to asses. Often calculating the managing cost of the management team, and the salaries of the office staffs are critical to link with the production cost of a product. And that time this ABC model of costing comes into play and effective role.

ABC model of costing helps the management body to critically analyse the different costs of the organization, and it also helps to determine them the actual cost of the product. The ABC model of costing is mostly being used by the organizations which deal with huge number of customers and it is being used to analyse the product costing, product line costing, profitability analysis etc. this model of accounting helps the organization to provide market based pricing.

ABC Model of Accounting & Brambles Limited

Brambles Limited is one of the major supply chain logistic groups which is specialised in associated services and unit load equipments. This organization deals in outsourced management of pallets, crates and containers. That is why, the accounting process of this organization is bit complicated. The main objective of this organization is achieving sustainability through good quality products and services. This organization is also interested in transporting and winning the resources. Supply chain logistic projects require a lot of human resource. The safety and security of the employees and staff is also a responsibility of the supply chain logistic managing organizations.

Objective of Brambles Limited:


The Supply chain logistic projects are not straight forward process, and a lot of things need to be taken care of. That is why these organizations have to spend a lot of money for the fund management. The raw material related to supply chain management business is a lucrative business, but it is highly risky business too. Especially the safety and security of the employees, ensuring the use best quality and efficient equipment and methods for the Supply chain logistic projects. Also the scarcity of the raw materials increases the market risk of these organizations. Wrong management of the fund can ruin the organization completely.

To grab the market share, this organization tries to enhance their distribution facilities at a huge amount. The main objective of this organization is to achieve a sustainable growth in terms of production capabilities and reliability. That is why; this organization should opt for a reliable model for accounting projects. Without the right allocation of fund, no organization can achieve a sustainable model of growth.

Corporate Strategies of Brambles Limited:           


The main objective of the Brambles Limited is to gain maximum level of profit by acquiring highly profitable Supply chain logistic market. That is why; the organization has recently invested in different process to maximise their Supply chain logistic projects. The marketing strategy of this organization is also aggressive and it is willing to gain a secure market place in the international Supply chain logistic market. This organization will never be able to achieve its goals without the right allocation of the fund.

This organization raises its funds through share holders. It decreases the risk for the organization, and it also conveys the message that this organization is interested in maximising its profit margins through mass production (Gupta, Pevzner and Seethamraj, 2010). To raise fund for the new projects, this organization has made its funds available for the common people at low price.

The organizations, which are involve in mass production face difficulties at the time of managing the funds for their projects. The mass production process helps the organization to provide a large amount of product at a low price. This increases the risk for the organization, yet this process is helpful for large organization because this process helps the organization to achieve a sustainable model of growth. The action based model of accounting will help the organization to determine the price of their goods and services through the performance of the organization and demand for the product.

As the Supply chain logistic market is a highly volatile in nature in the market place that is why the organizations should adopt right accounting strategies in order to maximise their productivity and profit margins. The activity based costing system is highly recommended for the supply chain logistic industry based organizations. It helps the organization to reduce all the extra unnecessary cost, so that the organization can have maximum profit for its goods and services (Gupta, Pevzner, and Seethamraj, 2010).

In the activity based costing system, the cost of managing the employees or every small cost driving factor can be identified. If helps the organization to assess every cost driving factor for optimum level of efficiency. If the goods and services don’t provide enough profit to the organization, the organization can eliminate the cost driving factors. The activity based costing system also helps the organization to efficiently manage the cost driving factors, for optimum level of output for their investment.

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