Homework

Assuming that the company’s goal is to maximize profits, the current cost system is not an appropriate tool for strategic planning. The ambiguity of the overhead costs per product makes it difficult to accurately analyze the cause and effect relationships of changes and/or improvements to specific product line.

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The company’s increase in inventory (illustrated on the statement of cash flows) rose after 1970 and culminated by a drastic increase in 1973. This increase in inventory (especially in 1973) appears to be heavily financed by short-term and long-term borrowing rather than the typical accounts payable. This is a bit unusual and in 1973 (when they acquired the greatest amount of debt equity, their accounts payable decreased. Their sales were not sufficient to offset the large outflows of inventory related costs. Furthermore, Grant’s decentralization was also a cause of their financial woes because rather than corporately controlling credit extension and credit terms, they allowed each store manager to set their own policies (and manipulate them as they desired). This disastrous policy imploded in 1975 when the company had to make a $155.7 million provision for bad debt expense. So not only did the company have substantial debt and bad debt to equity ratios, they were forced to write off about 8.8% of their total sales from 1975.

#5. Other things equal, what effects would each of the following have on aggregate demand or aggregate supply? In each case use a diagram to show the expected effects on the equilibrium price level and the level of real output.

What is the normal process flow of the production system at Donner? Draw a process flow diagram.

In the beginning of the New World, the Natives and Europeans benefited from each other. While the natives used the European advanced technology to surpass other tribes, the Europeans were learning how to cultivate the land. The Natives introduced tobacco to the Europeans which later went on to be one of their main exports. Eventually the binds between both would break and the Europeans would drive the natives off their land.

Every so often, a breakthrough scientific discovery is uncovered that completely changes the way we view the world. Typically, at the slightest hint of revolutionary data, the media immediately broadcasts the forthcoming of a brand new wave of science that keeps everyone on the edge of their seat. There is one story, however, that did indeed change the world of science but took decades to surface. This intricate story is described in the award-winning book, “The Immortal of Henrietta Lacks”.

Support: The inventory increase in 1997, YOY, was 58%. Additionally, the COGS to revenue ratio reduced from to 72% in 1997. This combination of increase in inventory and reduction in COGS as a percentage of revenue seems to indicate that the fixed costs may have been spread over a larger base through over production, thereby causing the COGS to reduce. This may be a cause for concern and could be a potential red flag.

Bhimani, A., Horngren, C., Datar, S., Rajan, M. et al. (2012) Management and Cost Accounting. 5th ed. Edinburgh: Prentice Hall, p.369 - 378.

with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was

INTRODUCTION Businesses – from manufacturing, merchandising and service industries alike – take careful consideration in the analysis of their costing systems in order to be able to set up competitive prices in the market. Misallocation of costs may lead to incorrect price estimates, continuous production of unprofitable products, and ineffective processing schedules. In this case study, we will discuss the costing methods which Zauner Ornaments have used or is currently using and, in conclusion, be able to distinguish the advantages and disadvantages of each costing method. CASE CONTEXT The case seeks to assist Zauner’s comptroller, Yu Chia-yi, in determining the best costing method for their overhead costs. In addition we also aim to

With this costing technique , a Manager can easily determine if there is a weak link in production chain by keeping an eye on the cost per unit each day. Using the accounting programs involved in process costing, a manager can figure out where in the process the item 's per unit cost is going up. This way a single manager or a team of managers can monitor millions of units being produced without needing to check on each department unless a problem comes up. By the same token, these numbers need to be watched diligently, as a change of even a fraction of a cent can cost thousands of dollars quite quickly.

A very common complaint amongst students and parents is the amount of homework a student receives each night. Many students believe that they are assigned an unfair amount of homework. I am amongst these students due to the fact that I am very involved in the school and community and find it very hard to find the time to do these assignments. Therefore, this paper will show that too much homework can have a negative effect on test scores. This will be done by comparing experiments on students with a lot of homework, students with no homework, and students with some homework.

During the recession in 1990, Mercedes -Benz struggled to adapt to changing markets. The luxury car market lost money for the first time in history in the 90’s. In 1993, there was a big sales slump in Mercedes-Benz sales. In its search for additional market share, new segments, and new niches Mercedes started developing a range of new products. One of the most radical and largest of the new range of products is AAV (all activity vehicles). In order to be competitive in the market, Mercedes-Benz needs to control costs and also meet the customer requirements at the same time. To achieve this goal, Mercedes-Benz adapted target costing. Is Mercedes-Benz heading in a right direction with target costing? Should they continue to use it? If

not be limited to that product, but has to take into account other products that can benefit the investment. This shows the importance to think about R&D TCM and technology focused TCM7. 3. Manufacturing Focused Target Cost Management: Linkage Between Cost Maintenance and Kaizen Cost Management It is believed that target costing activities are mainly carried out at the concept and development stage of a product. This belief is based on the assumption that about 80 percent of costs for a particular product is locked before the beginning of production stage. Even after all TCM related activities are effectively done during the concept and development stage, this does not assure that once the production begins, costs will remain as predicted. Therefore, the effectiveness of TCM depends on the effective linkage between cost