Question
In 2020, Office Systems Inc. used 35,840 pounds of plastic (direct materials) to produce 9,000 units as opposed to 2021, when Office Systems Inc. produced
In 2020, Office Systems Inc. used 35,840 pounds of plastic (direct materials) to produce 9,000 units as opposed to 2021, when Office Systems Inc. produced 9,500 units using 37,840 pounds of plastic. The type of plastic Office Systems Inc. uses costs $6 per pound in 2020 and rose to
$6.75 per pound in 2021. In comparing results for these two years,
What would be the cost effect of growth for the plastic material? (8 points)
What would be the cost effect of price recovery for the plastic material? (8 points)
What would be the cost effect of productivity for the plastic material? (9 points)
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Management Accounting Information for Decision-Making and Strategy Execution
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