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Question No 2: CASE ANALYSIS: SITUATION ONE: Hewlett-Packard's (HP's) has long-term agreements with suppliers of the major components of its printers. Each supplier is required
Question No 2: CASE ANALYSIS: SITUATION ONE: Hewlett-Packard's (HP's) has long-term agreements with suppliers of the major components of its printers. Each supplier is required to make frequent deliveries of small orders directly to the production floor, based on the production schedules HP provides them so that inventory level is zero. The suppliers work hard to keep their commitments because any failure on their part will result in HP's assembly plant not meeting its scheduled deliveries of printers. SITUATION TWO: Suppose Power Recreation's snowmobile engine must go through a forging operation before it goes to the assembly operation. The company has 1,200 hours of daily forging capacity dedicated to the manufacture of snowmobile engines. The company takes 3 hours to forge each snowmobile engine, so Power Recreation can forge 400 snowmobile engines per day (1,200 hours, 3 hours per snowmobile engine). Recall that it can assemble only 300 snowmobile engines per day (600 machine@hours, 2 machine@hours per snowmobile engine). The production of snowmobile engines is constrained by the assembly operation, not the forging operation. SITUATION THREE: Customers expect high levels of quality. It is an integrative philosophy of management for continuously improving the quality of products and processes. Managers believe that every person in the value chain is responsible for delivering products and services that exceed customers' expectations. For this, companies design products or services to meet customer needs and wants, to make these products with zero (or very 2/2 few) defects and waste, and to minimize inventories. Managers use management accounting information to evaluate the costs of products before and after the production process. Requirements: [3] IDENTIFY WHICH MANAGERIAL ACCOUNINTING TOOLS IS USED IN EACH SITUATION? Explain. w
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