Nike project

The company operates all over the worked and has portfolio brands such as Nike Brand Jordan Brand, Hurley as well as converse. The company sells its products both in retail via its website and stores and via selected distributors and licensees all over the world. The company has performed consistently well and especially in the last quarter. The fourth quarter increased 13 percent to 9. 8 billion and this was driven by strong double digit revenue growth in international markets and Nike Direct globally. It is worth noting that the greater China region is responsible for approximately 3% of the revenue increase, while other regions such as Europe, the Middle East, Africa, Asia Pacific and the Americas contributed approximately 2% each. Revenues from Nike Direct represented 30% of the total.

Digital commerce sales increased in the first quarter of fiscal 2019 by 100 million compared to the same period as year. As pertains to demand creation expense, there was a 13% increased in the first quarter of the 2019 fiscal year compared to the same period last year. This could be attributed to the increase in marketing costs across all portfolios ("NIKE FY2018 Annual Report", 2019). in that the company would want make profits as soon as possible after the acquisition process is complete. Essentially, marginal costing is a principle where the variable costs are charged to cost units and the fixed costs attributed to the period are written off in full against and the contribution of the period. This concept is based on the behavior of costs that vary with the volume of the output, which makes it ideal for the Nike Inc company.

In some cases in cost accounting, marginal costing is interchanged with direct costing. When applying this concept, it is important to understand that it is impossible to determine the profit margin per unit of product. The ability to plan for profits in the short term goes a long way to ensure that the acquisition was a sound investment. With marginal costing, management can easily demonstrate profit planning with break even charts and graphs. In addition to this, comparative profitability can be accessed with ease. Finally with the marginal costing concept, the effects of alternative sales are readily appreciated and assessed therefore ensuring that decision can and will have maximum returns for the business. This means that after acquiring Nike Inc. Selling products directly to consumers via e-commerce and or via certified Nike Distributors has allowed the company to cut out the middleman therefore increasing its revenues and profit margins while cutting the expenditures that would emanate from setting up the necessary infrastructure.