Forbes has identified the best-performing public companies in the U.S. with sale

Question

Forbes has identified the best-performing public companies in the U.S. with sales under $1 billion. Access the list at http://www.forbes.com/best-small-companies/ (Opens in a new window. Plain text: http://www.forbes.com/best-small-companies/ ). Identify three companies on the list that would most likely use job-order costing systems. Write a brief summary (one paragraph) about each of the three companies. The summary for each should include the name, website address, and a brief description of its business, and set forth the reasons why the company would most likely use a job-order costing system. (You should provide the appropriate citation(s). If necessary, you may wish to refer to the following website, which includes information about citations: http://www.cod.edu/library/research/citenet.htm. Opens in a new window. Plain text: http://www.cod.edu/library/research/citenet.htm)

Explanation / Answer

Three company using job costing - for overhead allocation Big Ass Fans Innotec West Paw Design Revenue As of January 2016 $202 Million Industry Manufacturing Founded 1999 Country United States Founder and CEO Carey Smith Website http://www.bigassfans.com/ Employees 835 Sales $202 M Headquarters Lexington, Kentucky Detailed profile of the company Founded in 1999, industrial fan producer Big Ass Fans could have sought to sell its high-end (and high-priced) wares through big-box retail channels. Instead, founder Carey Smith chose to avoid them, relying on his own army of salespeople to educate customers. In the past several years the company has expanded from the industrial sector into commercial and now residential markets, offering lighting products as well as smaller, sleeker home fans packed with high-tech sensors that sell for as much as $2,495. Today its residential products represent about 18% of company sales and growing. Big Ass Fans’ creations are now prominent in the factories and warehouses of customers like Target, Whole Foods, Boeing, Coke and Amazon. “Throughout your day,” says Smith, “most of the things you touch have been either manufactured or boxed for distribution under our fans.” Job costing - The business of the company is unique . It would incorporate job order costing as a means of controlling usage of raw materials, production equipment and labor hours. Innotec Revenue As of January 2016 $90 Million Industry Manufacturing Country United States President Mike Lanser Employees 400 Sales $90 M Headquarters Zeeland, Michigan Detailed Company profile Innotec, which makes lighting, applied metals and power-distribution products for the automotive, office-furniture and retail-lighting markets, uses a flat, decentralized organizational structure that gives each of its manufacturing lines, called “cells,” control over its own P&L and balance sheet. Those cells then report their operational and financial results to the rest of the company every month. Owned in part by an employee stock-option plan, Innotec has more than 20 U.S. patents and manufactures products in the U.S., China, Europe and Mexico. The employees take a similar approach to giving back. For instance, the company helped launch a charter school in Zeeland called Innocademy, where teachers, rather than administrators, run the schools. Innotec also helped fund and organize a well-drilling project in Nigeria that is providing clean water to more than 140,000 people." West Paw Design Revenue As of January 2016 $10 Million Industry Manufacturing Country United States CEO Spencer Williams Employees 70 Sales $10 M Headquarters Bozeman, Montana Detailed Company Profile West Paw Design is one of the companies defying the conventional wisdom that you can’t manufacture in the U.S. anymore. In fact, 99% of the company’s pet toys and beds, which use nontoxic, organic or recyclable materials, are made in Montana, which can hardly boast a legacy of manufacturing. The company has even sourced materials from its customers, who send back old pet chews to be recycled into new products made of a material the company calls Zogoflex. The sustainable approach helped make West Paw the first company in Montana to be certified as a B Corporation. “Our vision is to create a world where business success is friendly to people and the planet,” says Spencer Williams, who was 23 when he bought the business in 1996. He has implemented open-book management and a companywide profit-sharing plan.

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