Pelarsen Windows Case

If we assume that the 1991 products, prices, sales volumes, materials costs and overhead are unchanged from 1990 and that there are no process improvements that would lead to a reduction in the direct labor of a product, it can be inferred that the company’s profits would be identical to those of 1990, as stated in Appendix B. However, if the same is assumed

14. A decision to work closely with a limited number of suppliers for the purpose of ensuring that the proper materials are available at the optimal time is an example of:

Under an ABC system, the allocation of costs to products is achieved through at least four analytical steps. Firstly, costs are grouped into activity levels. Secondly, cost drivers are

For years 1983-1985, additional corporate assessment expense was given. This would lower Polymold’s earnings on their income statement. Another piece of data that was given is research and development expense. Without the CAD/CAM investment, research and development expense is $130,000. This is double to $260,000 without the CAD/CAM investment. This would lower earnings. We are also given the savings that the investment would yield. Without the CAD/CAM investment, there would still be savings – but not as much as with the CAD/CAM investment, which is due to the depreciation of the equipment and tax credits.

Under a traditional system, overhead cost is allocated to an activity based on hours or rates for direct labor or machine usage. However, this approach does not clearly indicate how much overhead cost will be needed in order to complete a job through a particular function. ABC methodology is to be used as an alternative to traditional accounting where a business 's overhead costs (indirect costs such as electrical energy consumption for heating or cooling, or indirect cost associated with marketing) are allocated as a proportion of direct costs, to an activity. This approach is unsatisfactory because there can be cases where two activities could absorb the same direct costs

Lately there have been more and more smart machines that have been taking over regular human tasks but as it grows the bigger picture is that robots will take over a lot of tasks now done by people. But, many people think that there are important ethical and moral issues that have to be dealt with this. Sooner or later there is going to be a robot that will interact in a humane manner but there are many questions to be asked like; how will they interact with us? Do we really want machines that are independent, self-directed, and has affect and emotion? I think we do, because they can provide many benefits. Obviously, as with all technologies, there are dangers as well. We need to ensure that people always

• This cost method does not provide the best system for JDCW’s cost allocation. By using only three overhead rates the present system grossly undermines the true production costs since other activities of the production process are not acknowledged.

After closely reviewing the financial and production data, our accounting team has found that your traditional cost allocation is faulty and misleading. The costs of products A and C were over allocated and products B and D were under allocated causing deceptive information on the true profits of the company. Also, product B appears to be

How would today’s world be if the technology that is known and loved by millions suddenly vanished? Could the world re-adapt to the lack of technology, or would it plummet into Darkness and Despair? In actuality, if someone can develop artificial intelligences to a certain limit he or she can prevent many of the world’s future problems. In a sense, Mankind can benefit greatly from the further use and development of Artificial Intelligence although some people would have one believe that the further development of Artificial Intelligence (AI) can endanger large areas around the world.

with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was

Another point of concern was the competition in the market that drove profit margins down. The main objectives for the ABC project at WCSO were 'to measure the efficiency of the activities, to find the link between departments and activities and to measure profit per repair (at client, contract or product level)' (Lacombe & Bescos, 1998).

The above graph suggests that volume based computation of overhead costs does not reflect the real overhead costs based on actual production per product line (computed maximum in excess over actual). On the other hand, if we follow the allocation of overhead costs based on prime costs as illustrated in Exhibit 2 of the case, we need to consider other quantitative factors: 1. No data is available to determine the amount of raw materials used in producing each of the products. While we can assume that the production of small, colored glass ornaments uses fewer raw materials (e.g. glass) than large, colored glass ornaments, the amount of glass used to produce specialty ornaments cannot be derived from the facts of the case. 2. There is also no data available to determine the number of direct labor hours consumed for producing each product type, although evidently, specialty ornaments use more direct labor hours. Based on the above considerations, we deem it inaccurate to base overhead on prime costs, a common practice in traditional costing. In addition,

To successfully achieve her goal of a more profitable company Helen must rely on the support of the workforce. As resistance to change is common human behavior the

The current method of apportioning production overheads based on direct labour hours can be described as a traditional approach to product costing. In a manufacturing company’s financial statements, each item produced must be allocated some of the production overheads to make the statements compliant. Sometimes the individual costs of these items can be calculated incorrectly based on overall production overhead and the system of allocating in place, however the overall financial statement can still be accurate. This traditional method of allocating the production

Introduction: For years robotic technology has depicted fictional humanoid robots in movies and television, consequently peaking our imagination of artificial life forms. No longer are humanoid robots fiction, but reality as roboticists have been developing them not only with an appearance based on a human body but with humanlike sensory and movements. Moreover, humanoid robots are performing human tasks from industrial to service jobs and can survive in any kind of environment. The advancement of robotic research involves the fields of science, cognitive science, programming and engineering (Cheng). Some people consider humanoid robots a threatening force because they feel they are not safe, they will take over our jobs, or are uncomfortable with their