In our Feature Story about Super Bakery, Inc., we described a virtual corporation as one that consists of a core unit that is supported by a network of outsourced activities. A virtual corporation minimizes investment in human resources, fixed assets, and working capital. The application of ABC to Super Bakery, Inc. is described in an article entitled “ABC in a Virtual Corporation” by Tim Davis and Bruce Darling, in the October 1996 issue of Management Accounting.

Instructions
Assume you are the controller of a virtual corporation. Using the article as a basis for your communication, write a summary that answers the following questions.
(a) What unique strategies and tactics did Super Bakery’s management implement that caused sales to take off and continue to grow at an average rate of 20%?
(b) Why did Super Bakery’s management feel that it was necessary to install an ABC system?
(c) What is the main difference between Super Bakery’s ABC system and other manufacturers’ ABC systems?

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March 1, 2012

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