Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GV is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. Every December, GV sends out a short survey

GV is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. Every December, GV sends out a short survey to their customers, asking for the information required for preparing the tax statements. Based on 50 years of experience, GV categorizes their cases into the following groups: * Group 1 (new customers, easy): 15 percent of cases * Group 2 (new customers, complex): 5 percent of cases * Group 3 (repeat customers, easy): 50 percent of cases * Group 4 (repeat customers, complex): 30 percent of cases Here, "easy" versus "complex" refers to the complexity of the customer's earning situation. In order to prepare the income tax statement, GV needs to complete the following set of activities. Processing times (and even which activities need to be carried out) depend on which group a tax statement falls into. All of the following processing times are expressed in minutes per income tax statement. Group, Filling, Initial meeting,Preparation Review by Senior accountant, Writing. Group 1. Filling20, IM30,P120,R by SA 20,W 50. Group 2. Filling 40, IM90, P300, 60, W 80 Group 3. Filling 20, no meeting,P80, R by S A 5,W 30 Group 4. Filling 40, no meeting, P200,R by S A 30 ,W 60 The activities are carried out by the following three people: * Administrative support person: filing and writing. * Senior accountant (who is also the owner): initial meeting, review by senior accountant. * Junior accountant: preparation. Assume that all three people work eight hours per day and 20 days a month. For the following questions, assume the product mix as described above. Assume that there are 50 income tax statements arriving each month. What is the (implied) utilization of the junior accountant

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding Corporate Annual Reports

Authors: William Pasewark

7th Edition

0073526932, 9780073526935

More Books

Students also viewed these Accounting questions

Question

Provide examples of unethical behaviour in an organization.

Answered: 1 week ago

Question

Define self-expectancy and explain two ways to boost it.

Answered: 1 week ago

Question

Purpose: What do we seek to achieve with our behaviour?

Answered: 1 week ago

Question

An action plan is prepared.

Answered: 1 week ago