Variable manufacturing cost plus opportunity cost would be the best transfer pricing system to use because it would allow the supplying division to be in- different between selling

Setting up equipment: At first glance, this appears to be a value-added activi- ty because: (1) it causes a change in the state of nature: improperly confi- gured equipment

Karl’s payback would be correct if the equipment and furniture could be sold for their book value because there would now be an opportunity cost associated with them and that

4. Facility-level: Providing utilities, providing space.. This problem allows us to see what the accounting cost per unit should be by providing the ability to calculate the cost

If training is increased, then employee productivity and participation will in- crease; if employee productivity and participation increase, then product quality and process

The cost of goods transferred out from beginning work in process is obtained by (1) assigning them all costs carried over from the prior pe- riod and (2) using the current

Variable manufacturing cost plus opportunity cost would be the best transfer pricing system to use because it would allow the supplying division to be in- different between selling

counting information system are as follows: To provide information for costing out ser- vices, products, and other objects of interest to management; to provide information for

For more than one scarce resource, linear programming may be used to select the optimal mix.. If a firm is operating below capacity,

Since the subordinate manager creates the budget, it also increases the likelihood that the goals of the budget will become the manager’s personal goals, resulting in a higher

based cost management systems use more drivers; are tracing intensive instead of allo- cation intensive; use broad, flexible product cost definitions; focus on managing activities

Cafeteria and personnel are allocated using number of employees; custodial services using square feet; maintenance using machine hours; and cost accounting using items

The pro- duction Kanban is removed and goes with the unit produced (which goes to the SB stores area). This Kanban system ensures that the second process withdraws subassemblies

Thus, contribution margin per unit is profit per unit, provided that the unit selling price is greater than the unit variable cost (which it must be for break-even to be

training, THEN employee environmental capabilities will increase; IF em- ployee environmental capabilities increase, THEN the manufacturing process and products will improve and

Increases in prevention and appraisal costs with simultaneous reductions in failure costs are good signals that overall quality is increasing (decreases in external failure costs

Had Persephone Company expected to receive Canadian dollars from the Ca- nadian company, it would have engaged in a forward contract to sell Cana- dian dollars on September 30

Plastic, direct labor, and variable overhead are flexible resources; molds and other facility costs are committed resources.. The cost of plastic, direct labor, and variable