Case: Allied Office Products Company A costs Allied less money to service, they are also a much smaller source of potential growth for the company. Company B on the other hand utilizes far more services and has the potential to earn Allied much greater revenue. With the information we have from the new ABC costing scheme we now know that Allied should be charging far more for the services rendered to company B, and less …
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…would ideally like to see these activities streamlined or eliminated from the TFC chain so that the extra resources can be more appropriately allocated to the services adding value to the customer. These saved resources could also be eliminated from the cost structure of the company, thus reducing costs for the customer. The management of Allied should also develop an appropriate pricing structure for the services being used that would maximize profits for the company.