The following data is obtained from the recent financial statements for two U.S. automakers (in $millions). Ford
Question:
The following data is obtained from the recent financial statements for two U.S. automakers (in $millions).
Ford | GM | |
Sales | $154,379 | $178,199 |
Cost of goods sold | 142,589 | 166,239 |
Required
1. Calculate and interpret total productivity in dollars for the two automakers. Assume that total variable manufacturing costs are 80 percent of cost of goods sold for each automaker.
2. Go to the Internet for these companies and look under investor information to find the financial statements for each company. Review the sections on management’s discussion and analysis and related financial statements and footnotes, and find the market size and market share information provided by these firms.
Ford: www.ford.com
GM: www.gm.com
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Step by Step Answer:
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins