Accounting management

Chapter Review -Cases Six independent situations follow. Provide the following information for each of the six situations. 1. An estimate of the non-value-added cost caused by each activity. 2. The root cause(s) of the activity cost (such as plant layout, process design, and product design, supliers). 3. The cost reduction measure: activity elimination, activity reduction, activity sharing, or activity selection. Case A A manual insertion process takes 30 minutes of machine time and eight pounds of material to produce a product. Automating the insertion process requires 15 minutes of machine time and 7.5 pounds of material. the cost per machine hour is $8, and the cost per pound of materials is $10. Nonvalue-Added Cost Root Cause Cost Reduction