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horngrens cost accounting a managerial emphasis

Questions and Answers of Horngrens Cost Accounting A Managerial Emphasis

=+a more effective inventory control system, highly uncertain demand in the various pharmacies makes this expedited inventory supply necessary. Rachel is concerned about the costs involved, however,
=+14-16 Explain how an emissions trading scheme (ETS) in Australia works.
=+14-17 Explain how the introduction of an ETS creates incentives to reduce emissions.
=+14-18 Provide an example of how an organisation might reduce the overall environmental impact of its operations by working closely with suppliers and customers.
=+14-19 List three potential benefits for an organisation from pursuing sustainability.
=+14-20 List and briefly describe in your own words the principles for defining report content as established by the Global Reporting Initiative (GRI).
=+14-21 List and briefly describe in your own words the principles for defining report quality as established by the GRI.
=+14-22 Consider the specific indicators of economic, social and environmental performance identified by the GRI in Table 14-2.Identify three measures that you believe would be particularly difficult
=+14-23 Why is it important that an organisation’s environmental management system (EMS) have the support of both senior management and operational employees?
=+14-24 Identify three of the benefits that an organisation can gain from implementing an EMS.
=+14-25 Explain how a balanced scorecard can be used to support an organisation’s efforts to be more sustainable.
=+14-26 Explain how activity-based costing (ABC) can be used to support an organisation’s efforts to be more sustainable.
=+◗ Twenty trucks could be purchased, each with a capacity of 20 cubic metres. Each truck would cost $50000. The trucks consume 12 litres per 100 km driven; 400000 km (per truck) would be driven
=+8 Perform life-cycle analysis (LCA)
=+Depositors receive a 3.5% annual interest rate on their average deposit. AusBank earns an interest rate spread of 4% (the difference between the rate at which it lends money and the rate it pays
=+7 Outline a strategy for progression towards being a sustainable organisation
=+6 Explain the business case for corporate sustainability
=+5 List the steps involved in establishing environmental management accounting (EMA) as part of an environmental management system (EMS)
=+4 Identify the issues that arise for performance measurement when organisations choose to adopt one of the major external reporting frameworks, such as the GRI
=+3 Explain how an emissions trading scheme (ETS) operates
=+2 Define the term ‘externality’ and provide examples of the social and environmental impacts that organisations have on their various stakeholders
=+1 Explain the terms ‘equity’ and ‘interdependency’ in the context of sustainability
=+3 The design engineering team has proposed a modification that would lower the Weaving Department’s rate of defective products to 3%. The modification would cost the company $175000 per month.
=+2 Kiwi Designs Ltd’s engineers have developed a method that would lower the Printing Department’s rate of defective products to 6% at the printing operation. Implementing the new method would
=+1 The Printing Department is considering buying 5000 additional rolls of grey cloth from an outside supplier at $900 per roll. The Printing Department manager is concerned that the cost of
=+The good rolls from the Weaving Department (called grey cloth) are sent to the Printing Department. Of the 9500 good rolls started at the printing operation, 950 (10%) defective rolls are produced
=+Kiwi Designs Ltd can start only 10000 rolls of cloth in the Weaving Department because the weaving machines have capacity constraints. Of the 10000 rolls of cloth started in the Weaving Department,
=+16-43 KKK Quality improvement, theory of constraints OBJECTIVE 3 Kiwi Designs Ltd makes printed cloth in two departments: weaving and printing. Currently, all product first moves through the
=+3 Suppose Nancy decides not to present the re-engineering option to Chris. Is Nancy’s action unethical? Explain.
=+2 Which of the two quality options should Nancy propose to the general manager, Chris Sheldon? Show the two-year outcome for each option: (a) re-engineer the manufacturing process for $75000 and
=+Prior to receiving the new corporate quality objective, Nancy had collected information for all of the plant’s possible options for improving both product quality and costs of quality. She was
=+16-42 K Ethics and quality OBJECTIVES 1, 3 Wainwright Corporation manufactures car parts for two leading Japanese car makers. Nancy Evans is the management accountant for one of Wainwright’s
=+3 Draw a cause-and-effect diagram of possible causes for late deliveries.
=+2 Give examples of prevention activities that could reduce the failures experienced by Prize.
=+16-41 K Quality improvement, Pareto diagram, cause-and-effect diagram OBJECTIVES 1, 2 Prize Pizza has recently begun collecting data on the quality of its customer order processing and delivery.
=+3 Evaluate management’s performance on quality and timeliness over the two years.
=+d percentage of hours spent by each employee on quality training.
=+c percentage of on-time deliveries
=+b defective units reworked as a percentage of units shipped
=+a percentage of goods returned
=+2 For each year 2014 and 2015, calculate the following:
=+16-40 K Non-financial measures of quality, manufacturing cycle efficiency (CMA, adapted)OBJECTIVES 1, 2, 3 Torrance Ltd evaluates the performance of its production managers based on a variety of
=+3 Assuming budgeted revenue per conference attendee is unchanged, what is the variable cost per conference attendee at which Flagstar would be indifferent between implementing and not implementing
=+2 Assuming budgeted revenue per conference attendee is unchanged, should Flagstar implement the proposed changes?
=+(3) upscale and cleaner meeting facilities. To satisfy these customer demands, the company would be required to increase fixed costs by 50% per year and increase variable costs by $10 per attendee
=+The company’s budgeted operating income is $3500000.After conducting a survey of 3000 conference attendees, the company has learned that its customers would most like to see the following changes
=+16-39 K Quality improvement, relevant costs, relevant revenues OBJECTIVE 3 Flagstar Conference Centre and Catering is a conference centre and restaurant facility that hosts over 300 national and
=+2 Would it be unethical for Lindsey Williams to modify her analysis? What steps should she take to resolve this situation?652 Chapter 16: Balanced scorecard: quality, time and the theory of
=+Dave Evans, the plant manager of Auscell, is eligible for a bonus if the total costs of quality as a percentage of revenues are less than 10%, the percentage of customer complaints is less than 4%
=+16-38 KK Ethics and quality OBJECTIVES 1, 2 Information from a quality report for 2014 prepared by Lindsey Williams, assistant management accountant of Auscell, a manufacturer of electric motors,
=+3 Draw a Pareto diagram of the types of failures in accounts receivable and a cause-and-effect diagram of possible causes of one type of failure in accounts receivable.
=+2 Give examples of prevention activities that could reduce failures in accounts receivable.
=+16-37 KK Quality improvement, Pareto diagram, cause-and-effect diagram OBJECTIVES 2, 3 Murray Ltd manufactures, sells and installs photocopying machines. Murray Ltd has placed a heavy emphasis on
=+4 If LTT sells two Chatty Chelseys for each Talking Tanya, how much would production and contribution margin increase if the Assembly Department could get 10 more labour-hours at $18 per hour?
=+3 If LTT sells two Chatty Chelseys for each Talking Tanya, how much would production and contribution margin increase if the Moulding Department could buy 15 more kilograms of materials for $12 per
=+2 If LTT sells two Chatty Chelseys for each Talking Tanya, how many dolls of each type would it produce and sell? What would be the total contribution margin?
=+16-36 KK Theory of constraints, contribution margin, sensitivity analysis OBJECTIVES 3, 5 Low Tech Toys (LTT) produces dolls in two processes: moulding and assembly. LTT is currently producing two
=+5 What are the benefits of improving quality in the Mixing Department compared with improving quality in the Tablet-making Department?Chapter 16: Balanced scorecard: quality, time and the theory of
=+2 Discuss the validity of the components of the bonus plan as measures of profitability, waiting time performance and patient satisfaction. Suggest one shortcoming of each measure and how it might
=+c Patient satisfaction performance. Deduct $40000 if patient satisfaction (measured using a survey asking patients about their satisfaction with their doctor and their overall satisfaction with We
=+b Average patient waiting time. Add $40000 if the average waiting time for a patient to see a doctor after the scheduled appointment time is less than 10 minutes. If average patient waiting time is
=+a Profitability performance. Add 0.75% of operating profit.
=+3 Why do you think We Care includes measures of both operating profit and waiting time in its bonus plan for group chief executive officers? Give one example of what might happen if waiting time
=+16-30 KKK Compensation linked with profitability, waiting time, quality measures OBJECTIVE 3 We Care operates two medical groups, one in Melbourne and one in Adelaide. The semi-annual bonus plan
=+3 Some managers propose that Pride Airlines present its SQC charts in monetary terms rather than in physical quantity terms (litreunits). What are the advantages and disadvantages of using
=+2 Present SQC charts for round-trip fuel usage for each of the three 747s in October. What inferences can you draw from the charts?
=+Using a statistical quality control (SQC) approach, Bev Holden, the operations manager at Pride Airlines, investigates any return trip with fuel consumption that is greater than two standard
=+16-31 KK Waiting times, manufacturing lead times OBJECTIVE 2 Highspin Ltd uses an injection moulding machine to make a plastic product, IGON. Highspin Ltd makes products only after receiving firm
=+16-29 KKK Statistical quality control, airline operations OBJECTIVE 3 Pride Airlines operates daily return flights on the Singapore–Sydney route using three 747s: the Spirit of Ullawarra, the
=+2 What non-financial and qualitative factors should Orco Ltd consider in making the decision?
=+Direct manufacturing labour, set-up labour and materials-handling labour (variable) 3 per unit Equipment, rent and other allocated overhead, including inspection and testing costs on scrapped parts
=+16-28 KK Quality improvement, relevant costs, relevant revenues OBJECTIVE 3 Orco Ltd uses multicolour moulding to make plastic lamps. The moulding operation has a capacity of 200000 units per
=+3 What non-financial and qualitative factors should Lomax Ltd consider in deciding whether to implement the new design?
=+2 Should Lomax Ltd implement the new design? Show your calculations.
=+◗ The demand for Lomax Ltd’s V262 valves is 370000 per year.◗ Jackson Ltd has asked Lomax Ltd to supply 22000 T971 valves (another product) if Lomax Ltd implements the new design.The
=+4 Suppose that Wylies Ltd also loses 10000 grams of mixture in its Mixing Department. These losses can be reduced to zero if the company is willing to spend $9000 per month in quality-improvement
=+16-27 KK Quality improvement, relevant costs, relevant revenues OBJECTIVE 3 Lomax Ltd sells 300000 V262 valves to the car and truck industry. Lomax Ltd has a capacity of 110000 machine-hours and
=+2 Buffalo Ltd produces 2000 defective units at the finishing operation. What is the cost to Buffalo Ltd of the defective items produced? Explain your answer briefly.
=+16-26 K Theory of constraints, throughput contribution, quality (continuation of 16-25) OBJECTIVE 3 Refer to the information in Exercise 16-25 in answering the following requirements. There is no
=+4 Maston Ltd offers to machine 4000 units at $4 per unit, half the $8 per unit that it costs Buffalo Ltd to do the machining in-house.Should Buffalo Ltd accept Maston Ltd’s offer? Show your
=+3 Wylies Ltd’s engineers have devised a method that would improve quality in the Tablet-making Department. They estimate that the 10000 tablets currently being lost would be saved. The
=+3 An outside contractor offers to do the finishing operation for 12000 units at $10 per unit, double the $5 per unit that it costs Buffalo Ltd to do the finishing in-house. Should Buffalo Ltd
=+2 The production manager of the Machining Department has submitted a proposal for faster set-ups that would increase the annual capacity of the Machining Department by 10000 units and would cost
=+16-25 KK Theory of constraints, throughput contribution, relevant costs OBJECTIVE 5 Buffalo Ltd manufactures filing cabinets in two operations: machining and finishing. It provides the following
=+the contractor’s offer? Show your calculations.2 Another company offers to prepare 20000 grams of mixture a month from direct materials Wylies Ltd supplies. The company will charge $0.07 per gram
=+2 Calculate the manufacturing cycle time (or lead time) for an order.
=+16-24 K Manufacturing cycle time, manufacturing cycle efficiency (CMA, adapted) OBJECTIVE 2 Bryson Ltd evaluates the performance of its production managers based on a variety of factors, including
=+3 From a student satisfaction point of view, which of the two alternatives would be preferred? Why?
=+2 If advisers earn $100 per day, which alternative would cost less for the university? (Assume that if advisers work six days in a given working week, they will be paid time and a half for the
=+Department. Wylies Ltd incurs $156000 in direct materials costs. The Tablet-making Department manufactures only 390000 tablets from the 200000 grams of mixture processed; 2.5% of the direct
=+The head of the enrolment advisers at the university has decided that the advisers must finish their advising in two weeks and therefore must advise 420 students a day. However, the average waiting
=+16-23 KK Waiting time, cost considerations, customer satisfaction (continuation of 16-22)OBJECTIVES 2, 4
=+3 The university wants to know the effect on the average wait time of reducing the average advising time. If it can reduce the average advising time to 10 minutes, what would be the average waiting
=+2 The head of the enrolment advisers would like to increase the number of students seen each day, because at 300 students a day it would take 14 working days to see all of the students. This is a
=+16-22 KK Waiting time, service industry OBJECTIVE 2 The enrolment advisers at Sturdy University in Western Australia help 4200 students develop each of their class schedules and enrol for classes
=+3 What factors would Snappy Pizza need to consider when determining whether the delivery guarantee is beneficial for the company?646 Chapter 16: Balanced scorecard: quality, time and the theory of
=+2 Using the high–low method discussed in Chapter 3 (pp. 86–88), estimate the effect of changes in the late delivery percentage on average overall satisfaction with Snappy Pizza. Use the
=+16-35 KK Theory of constraints, throughput contribution, quality, relevant costs OBJECTIVES 2, 5 Wylies Ltd manufactures pharmaceutical products in two departments: Mixing and Tablet-making.
=+Store 1 Store 2 Store 3 Store 4 Percentage of deliveries that were late 10% 5% 12% 25%Average rating of delivery service 4 4.5 3.8 2 Average rating of value received 3.5 4.1 3.5 1.5 Average overall
=+The head of the Snappy Pizza chain is worried that this perceived win–win situation may encourage a complacent attitude in store managers with respect to on-time deliveries. While short-run

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