Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Functional-Based Responsibility Accounting versus Activity-Based Responsibility Accounting
The labor standard for a company is 2.0 hours per unit produced, which includes setup time. At the beginning of the last quarter, a total of 20,000 units had been produced and 44,000 hours used. The production manager was con- cerned about the prospect of reporting an unfavorable labor efficiency variance at the end of the year. Any unfavorable variance over 9 to 10 percent of the standard usually meant a negative performance rating. Bonuses were adversely affected by negative ratings. Accordingly, for the last quarter, the production manager decided to reduce the number of setups and use longer production runs. He knew that his production workers usually were within 5 percent of the standard. The real problem was with setup times. By reducing the setups, the actual hours used would be within 7 to 8 percent of the standard hours allowed.
Required
1. Explain why the behavior of the production manager is unacceptable for a continuous improvement environment.
2. Explain how an activity-based responsibility accounting approach would discourage the kind of behavior described.
What are the main features of an intangible asset, as laid out in AASB 138 Intangible Assets. Explain how Pics Ltd's) expenditures on intangibles should be accounted for under AASB 138 Intangible Assets.
Shown here are annual financial data at December 31, 2013, taken from two different companies.
a consulting firm produces a service that requires the use of labor and materials. each unit of service requires a
If Jim increases production to 350,000 units per year, what will be the new equivalent cost per unit?
If Bent & Dent had used the perpetual inventory system, how would it have determined the amount of the inventory loss?
Draw a scatter diagram of Boutique Catering's Number of meals prepared and administrative costs for the year and the relevant range has been identified as between 200 and 800 meals prepared. Mark the range on the scatter graph. Do you think this ..
Prepare a cash budget for the period October to December 2009, indicating the extent of the bank facilities the company will require at the end of each month:
What must the contribution margin ratio be if Seagull Limited wants to increase its operating profit by 10.40 000 in 2013 and calculate the additional expenditure that the company can afford on advertising.
Overhead is applied to production on the basis of direct labor hours. During March, 924 blankets were manufactured and sold. Difference between standard and actual cost per blanket produced during March: $0.10 F.
Why is the cash flow from operating activities different under FIFO and LIFO?
How much of the unit product cost of $62.00 is relevant in the decision of whether to make or buy the part and what is the net total dollar advantage of purchasing the part rather than making it
Compute the cost per equivalent unit for materials using the weighted-average method - The information pertains to the Davenport plant for the month of May
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd