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Problem - Adriana Alvarado has decided to purchase a personal computer. She has narrowed the choices to two: Drantex and Confiar. Both brands have the same processing speed, 6.4 gigabytes of hard-disk capacity, two USB ports, and a DVDRW drive, and each comes with the same basic software support package. Both come from mail-order companies with good reputations. The selling price for each is identical. After some review, Adriana discovers that the cost of operating and maintaining Drantex over a 3-year period is estimated to be $300. For Confiar, the operating and maintenance cost is $600. The sales agent for Drantex emphasized the lower operating and maintenance costs. The agent for Confiar, however, emphasized the service reputation of the product and the faster delivery time (Confiar can be purchased and delivered 1 week sooner than Drantex). Based on all the information, Adriana has decided to buy Confiar.
Required - Suppose that Adriana's decision was prompted mostly by the desire to receive the computer quickly. Informed that it was losing sales because of the longer time to produce and deliver its products, the management of the company producing Drantex decided to improve delivery performance by improving its internal processes. These improvements decreased the number of defective units and the time required to produce its product. Consequently, delivery time and costs both decreased, and the company was able to lower its prices on Drantex. Explain how these actions translate into strengthening the competitive position of the Drantex PC relative to the Confiar PC. Also discuss the implications for the managerial accounting information system.
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The production department described in Exercise 20-8 had $ 850,000 of direct materials and $ 650,000 of direct labor cost charged to it during April.
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What account would have been credited to record Fedora's completed production? Compute the number of equivalent units with respect to conversion cost.
Why is important for non-financial measures to be included in these performance measurement systems for both 'top' managers and other executive
Brooks Company will receive $10,000 a year at the end of each of the next five years. Using a discount rate of 14%, the present value of receipts can be stated
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Last year Lawson Company reported sales of $140,000 on its income statement. Find the sales revenue adjusted to a cash basis
The company actually purchased 10,600 pounds of direct materials costing $27.50 per pound to make the 4900 units. What is the direct materials price variance?
Longman Industries makes a line of back country, Calculate the rate and production-volume variances for fixed setup overhead costs.
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