Reference no: EM131750221

Need some help on the first two questions:

1) Barbco's organizational design borrows from both lean management and the Theory of Constraints. Describe the unique characteristics of Barbco's design and accounting system with respect to lean management and TOC. In particular, discuss differences in approaching continuous improvement, cell design, value- versus cost- based decisions, and accounting methods.

2) In Exhibit 2's bolt-hole process, a bolt-hole machine drills holes into the steel blades that are to be TCed. Some blades have more and some have fewer bolt holes, depending on the design specifications. (a) Would the use of activity-based costing (ABC) to allocate bolt-hole- processing cost versus Barbco's use of time on the TCing machine lead to different product costs? (b) In what ways might the use of each of these allocation systems be beneficial or ineffective-in general, and at Barbco? Explain fully.