Accounting 3411 Case Study #1:
Forest Hill Paper Company
By Thomas L. Albright
Forest Hill Paper Company (FHPC) is a closely-held paperboard manufacturer that has been struggling with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was inadequate to provide management with relevant information for decision making. Therefore, the board of directors has approved your consulting company’s proposal to conduct a cost system pilot study. Besides showing an analysis of FHPC’s product cost, your report to the board of directors is to include strategic recommendations based on your findings.
INSTRUCTOR NOTE: I recommend viewing the following video before reading the rest of the case
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After debarking, chippers reduce the logs into one-inch cubes.
The second step in the process is termed "digesting". Wood chips are cooked at 325 degrees Fahrenheit to break down the glue-like material bonding the wood fibers. Chemicals used in the digester are reclaimed and used in future pulp production. Following the digesting process, only brown fibers remain which are washed and screened.
A bleaching process is used to convert brown pulp into white pulp.
The paperboard manufacturing process begins by mixing pulp with water and chemicals in the first stage, or headbox, of a paper machine. The mixture is applied to a porous wire mesh; and formation of paper actually occurs within this step. The wire mesh travels through a press that forces the pulp mixture against the wire to eliminate water within the mixture and to form the desired paper thickness. The material then proceeds to a drying section where it travels across numerous cylindrical dryers that are heated with steam. In the final section of the paper machine, long sections of paperboard are rolled up into parent rolls and are removed from the machine. The parent roll is further processed by FHPC 's customers to make various types of paperboard containers.
Sometimes customers require additional processes to be performed on parent rolls. For example, food
Assuming that the company’s goal is to maximize profits, the current cost system is not an appropriate tool for strategic planning. The ambiguity of the overhead costs per product makes it difficult to accurately analyze the cause and effect relationships of changes and/or improvements to specific product line.
The process starts from the instant a company deposits their confidential papers into a locked bin. Based on the company’s pick-up service schedule, a uniformed service representative will transport the sensitive information to a secure van parked outside. A completed and signed Materials Receipt form is supplied prior to the departure from the business facility. They transport the materials to the shredding company’s warehouse near Pine Grove, South of Hood River, where the documents are moved into a fenced, locked area inside the secure warehouse. All paper is weighed and the number of pounds, shredded, baled and recycled, is reported and credited to each county’s DEQ, Department of Environmental Quality, for earned recycling points.
- Place the flowers on the cardboard and then layer on the tissue paper, the newspaper and another piece of cardboard.
During the Second World War a multitude of dry filters containing wood wool, sisal fibre, glass wool, wood chips soaked in oil, and other types of fibrous or granular material were used for removal of the fine dust (average particle size below 60 micron), but success was very limited.
AD 202 – Introduction to Printmaking: Please, update me when you get your grades for Projects # 1 and 2. I do not have any grades to report.
The potassium chlorate and sugar had burned through the metal plate and made a hole.
The practice of making paper by hand draws forth past centuries in a single sheet of tangled fibers. At the same time, the advances of both contemporary hand papermakers and modern technology have merged this tradition with innovation to create paper of unsurpassed beauty and quality. Despite the speed and economic advantages of machine-made paper, traditional handmade paper grasps its hold on the modern world, and mills across North America and Western Europe have re-emerged to produce fine handmade papers for artists, bookmakers, and conservators who seek the highest level of durability, permanence, and aesthetics.
or gas. The gas then flows out of the head of the wall where it is collected
Video 1: In the video Pressure + Ink: Lithography Process, the artist had to go through some very specific procedures before he could transfer the print to another paper surface. Since Lithography revolves around the fact that water and grease do not mix together, someone had to first draw a picture on a water/grease absorbing lithographic stone using a greasy drawing media like litho-pencils or crayons to create the grease printing image areas. Afterwards, the artist had to treat the stones through an etching process by first rubbing gum arabic onto the lithium rock surface to designate the areas where the water will be absorbed (or the non-image area) and then lithotine (a greasy solvent that helps create the greasy base for the ink on the
natural source, the dirt and bacteria is cleaned out, and it gets let out through the pipes and ends
pores in which they are trapped inside of, to allow this to move to a producing well.
The electrolysis process is a redox reaction. The aluminium is reduced, leaving behind pure aluminium at the cathode. The oxygen laced in the aluminium ore is then harvested at the anode, and it is oxidised. This redox reaction is what allows the aluminium to be processed to be ready for casting. (BBC,
Special chemicals are now added to the slurry and attach themselves to certain minerals in the mixture. All the slurry is then placed in large tanks. (Flotation cells) Air is then added and then rises through the slurry. The chemicals added to the mixture are hydrophobic so the attach to the passing air and float to the top of the tank and form a froth which contains the gold and pyrite. Soon the tank overflows and the froth is collected into a launder. The froth in the launder is then discharged and out into storage tanks and the water is then extracted from the tanks for reuse, leaving behind the gold in a dissolved form.
Some examples are fall leaves, hay, straw, paper, cardboard, eggshells, tea bags, sawdust, wood ashes, dead flowers, and shredded newspaper.