Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN: 9781305970663
Author: Don R. Hansen, Maryanne M. Mowen
Publisher: Cengage Learning
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Textbook Question
Chapter 15, Problem 21E
The following information is given for a manufacturing firm:
Which of the following correctly describes the change in productive efficiency from Year 1 to Year 2?
- a. Material and labor productivity both increased.
- b. Material and labor productivity both decreased.
- c. Material productivity decreased and labor productivity increased.
- d. Material productivity increased and labor productivity decreased.
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Productivity is best described as
a.
The output produced by the average worker in an hour
b.
The number of hours the average worker spends at the job
c.
The percentage of the population that is working
d.
GDP per capita
1. What is the Cost of the direct materials used in production for the year? What is the cost of goods manufactured for the year? What is the cost of goods sold for the year? What is the net income for the year?
the total productivity measure and the partial measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?
Chapter 15 Solutions
Cornerstones of Cost Management (Cornerstones Series)
Ch. 15 - Prob. 1DQCh. 15 - What are the five principles of lean thinking?Ch. 15 - Prob. 3DQCh. 15 - Prob. 4DQCh. 15 - Explain how lean manufacturing is able to produce...Ch. 15 - What role does a demand-pull system have on lean...Ch. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - What is the purpose of assigning facility costs to...Ch. 15 - Why are units shipped used to calculate the...
Ch. 15 - When will the average unit cost be useful for...Ch. 15 - Explain why changes in value-stream profitability...Ch. 15 - Prob. 13DQCh. 15 - Prob. 14DQCh. 15 - What is productivity measurement?Ch. 15 - Prob. 16DQCh. 15 - Prob. 17DQCh. 15 - Discuss the advantages and disadvantages of...Ch. 15 - Prob. 19DQCh. 15 - Prob. 20DQCh. 15 - What is profit-linked productivity measurement and...Ch. 15 - Prob. 22DQCh. 15 - What is the price-recovery component?Ch. 15 - Anderson Company has the following departmental...Ch. 15 - During the week of June 12, Harrison Manufacturing...Ch. 15 - In 20x2, Choctaw Company implements a new process...Ch. 15 - Refer to Cornerstone Exercise 15.3. Choctaw...Ch. 15 - Prob. 5ECh. 15 - Bienestar Inc., has the following departmental...Ch. 15 - Bienestar, Inc., implemented cellular...Ch. 15 - Henderson, Inc., has just created five order...Ch. 15 - Prob. 9ECh. 15 - Shorts Manufacturing, Inc., has implemented lean...Ch. 15 - The following Box Scorecard was prepared for a...Ch. 15 - Prob. 12ECh. 15 - Carsen Company produces handcrafted pottery that...Ch. 15 - Helena Company needs to increase its profits and...Ch. 15 - Helena Company needs to increase its profits and...Ch. 15 - Prob. 16ECh. 15 - Lean manufacturing is characterized by all but one...Ch. 15 - Lean manufacturing uses value streams to produce a...Ch. 15 - A manufacturing cell within a value stream is...Ch. 15 - Total productive efficiency is achieved when both...Ch. 15 - The following information is given for a...Ch. 15 - Sixty employees (all CPAs) of a local public...Ch. 15 - Sixty employees (all CPAs) of a local public...Ch. 15 - Bradford Company, a manufacturer of small tools,...Ch. 15 - Continuous improvement is the governing principle...Ch. 15 - Prob. 26PCh. 15 - Jadlow Company produces handcrafted leather...Ch. 15 - Prob. 28P
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- b. The company is managing the cost of manufacturing product than the industry, and has slightly selling and administrative expenses relative to the industry. The combined impact causes net income as a percent of sales to be than the industry average.arrow_forwarda. What is the box annual sales volume for each area to be able to compete on a competitive advantage strategy with competitors? b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.arrow_forwardThe following diagram is a cost-volume-profit graph for a manufacturing company: ^ O Volume с Select the answer that best describes the labeled item on the diagram. A. Area CDE represents the area of net loss. B. Line AC graphs total fixed costs. C. Point D represents a point at which the profit is greater than zero. D. Line AC graphs total costs.arrow_forward
- To determine the effect of different levels of production on the company’s income, move to cell B7 (Actual production). Change the number in B7 to the different production levels given in the table below. The first level, 100,000, is the current level. What happens to the operating income on both statements as production levels change? Enter the operating incomes in the following table. Does the level of production affect income under either costing method? Explain your findings.arrow_forwardBased on the image below for a manufacturing company, the correct statement is A. line b graphs total fixed costs B. point c represents the point at which the marginal contribution per unit increases C. line d graphs total costs D. area e (between lines b and d) represents the contribution marginarrow_forwardWhich of the following is not an example of a cost that varies in total as the number of units produced changes? a.electricity per KWH to operate factory equipment b.straight-line depreciation on factory equipment c.wages of assembly worker d.direct materials costarrow_forward
- Which one of the following is an example of a committed cost? a. The cost of annual end of year celebration а. b. None of the given answers С. The salary of the chief operating officer d. The cost of employee training program * e. The salary of the marketing managerarrow_forwardIf the cost of goods manufactured is less than the cost of goods sold, which of the following is correct? a) Finished Goods Inventory has increased. b) Work in Process Inventory has increased. c) Finished Goods Inventory has decreased. d) Work in Process Inventory has decreased.arrow_forwardIf the cost of goods manufactured is less than the cost of goods sold, which of the following is correct? a) Finished Goods Inventory has increased. b) Work in Process Inventory has increased. ) Finished Goods Inventory has decreased. d) Work in Process Inventory has decreased.arrow_forward
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