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As the chief executive officer of a large corporation, you have decided after discussion with production and accounting personnel to implement activity based management concepts. Your goal is to reduce cycle time and, in turn cost. A primary way to accomplish this goal is to install highly automated equipment in your plant, which would then displace approximately 60 percent of your workforce. Your company is the major employer in the area of the country where it is located.
a. Discuss the pros and cons of installing the equipment from the perspective of your(1) Stockholder, (2) employees, and (3) customers.
b. How would you explain to a worker that his or her job is a non value added activity?
c. What alternatives might you have that could accomplish the goal of reducing cycle time but not create economic havoc for the local area.
Use the contribution margin ratio CVP formula to compute Peyton Travel's break-even sales in dollars. If the average sales price of a ticket is $660.00; how many tickets must be sold to reach break-even?
Actual production and sales were 62,900 coffee mugs, actual direct materials usage was 10,000 lbs. at an actual price of $0.17 per lb., actual direct labor usage was 202,000 minutes at a total cost of $30,300
Factors which must be taken in account when making decisions regarding price, such as any change in risk involved in cost-volume-profit structure; the link between short- and long-run prices
Determine the predetermined overhead rate. Determine the amount of overhead applied during the year. Was overhead overapplied or underapplied? How much?
Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $600,000 based on a sales volume of 400,000 video disks. Calculate Detroit Disk's break-even point for the current year in number of video di..
Slatter Corp operates primarily in the United States. However, few years ago, it opened plan in Spain to produce merchandise to sell there. This foreign operation has been so successful that throughout the past 24 months the company started a manu..
The payroll bank account is reconciled by the chief accountant, who also prepares the several quarterly and annual tax reports.
Describe how a job analysis increases productivity, aids in job description creation, and guides employee team formation.
To implement target costing for a new product, companies often set up a cross-functional team with members from engineering, marketing, and costing accounting. Why is a cross-functional team desirable when implementing the target costing approach..
With possibility that the US Congress will relax restrictions on cutting old growth, a local lumber company is considering expanding its facilities. They can sell the lumber for .18 a board foot. The tax rate for company is 30%. The company has th..
What is generally true regarding overhead allocation to high-volume products versus low-volume products under the traditional costing system?
What is your view on the following statements:
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