Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several AutonomousCleaner (Auto-C) robots from Brain Corporation. An Auto-C robot looks like a Zamboni, the machineused to clean ice rinks. The robots scrub floors and clean store aisles, Sensors in the robots allowthem to navigate around customers and other objects, so the robots can be used during storeoperating hours.herManagement at Walmart has stated that the robots are to be used to free up employee time.Management reasons that if the robots do the repetitive taşks, employees will be better able to helpshoppers and do other tasks. Management estimates that an employee at each store with the Auto-C robot would have spent two hours per day doing the cleaning that the Auto-C will perform.atheWalmart is also using Auto-S robots in its stores, which scan shelves in the stores to help keep trackof inventory that is out of stock, mislabeled, or priced incorrectly. The Auto-S robots are three timesas fast as humans and twice as accurate.In addition, Walmart is using conveyor belt robots that sort products from trucks as they areunloaded. The conveyor belts cut the number of employees needed in the unloading process in half.Approximately 50% of Walmart's workforce is part time, up from 20% in 2017 (Reuters.) Walmartraised the minimum wage in its stores to $11 in 2018. Walmart employs more than 2 million peopleworldwide.Questions1. Do you think that the costs of robots are mostly variable or fixed? Explain.2. Would the cost of full-time hourly employees behave mainly as a variable cost or a fixed cost?Does your answer change if you consider part-time hourly employees rather than full-timehttr

Variable cost: A variable cost is an expense that changes in direct proportion to the amount of…

Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several Autonomous Cleaner (Auto-C) robots from Brain Corporation. An Auto-C robot looks like a Zamboni, the machine used to clean ice rinks. The robots scrub floors and clean store aisles, Sensors in the robots allow them to navigate around customers and other objects, so the robots can be used during store pperating hours. Management at Walmart has stated that the robots are to be used to free up employee time. Management reasons that if the robots do the repetitive taşks, employees will be better able to help hoppers and do other tasks. Management estimates that an employee at each store with the Auto- robot would have spent two hours per day doing the cleaning that the Auto-C will nerform

Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several Autonomous Cleaner (Auto-C) robots from Brain Corporation. An Auto-C robot looks like a Zamboni, the machine used to clean ice rinks. The robots scrub floors and clean store aisles, Sensors in the robots allow them to navigate around customers and other objects, so the robots can be used during store pperating hours. Management at Walmart has stated that the robots are to be used to free up employee time. Management reasons that if the robots do the repetitive taşks, employees will be better able to help hoppers and do other tasks. Management estimates that an employee at each store with the Auto- robot would have spent two hours per day doing the cleaning that the Auto-C will nerform

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 38P

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Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several Autonomous Cleaner (Auto-C) robots from Brain Corporation. An Auto-C robot looks like a Zamboni, the machine used to clean ice rinks. The robots scrub floors and clean store aisles. Sensors in the robots allow them to navigate around customers and other objects, so the robots can be used during store operating hours.Management at Walmart has stated that the robots are to be used to free up employee time. Management reasons that if the robots do the repetitive tasks, employees will be better able to help shoppers and do other tasks. Management estimates that an employee at each store with the Auto-C robot would have spent two hours per day doing the cleaning that the Auto-C will perform.Walmart is also using Auto-S robots in its stores, which scan shelves in the stores to help keep track of inventory that is out of stock, mislabeled, or priced incorrectly. The Auto-S robots are three times as fast as…
Walmart (WMT) uses robotic janitors in some of its stores. Walmart has purchased several Autonomous Cleaner (Auto-C) robots from Brain Corporation. An Auto-C robot looks like a Zamboni, the machine used to clean ice rinks. The robots scrub floors and clean store aisles. Sensors in the robots allow them to navigate around customers and other objects, so the robots can be used during store operating hours. Management at Walmart has stated that the robots are to be used to free up employee time. Management reasons that if the robots do the repetitive tasks, employees will be better able to help shoppers and do other tasks. Management estimates that an employee at each store with the Auto-C robot would have spent two hours per day doing the cleaning that the Auto-C will perform. Walmart is also using Auto-S robots in its stores, which scan shelves in the stores to help keep track of inventory that is out of stock, mislabeled, or priced incorrectly. The Auto-S robots are three times as fast…
Wholesome and Happy Foods is a farm-to-family grocery store located in the Pacific Northwest. The company recently installed four self-checkout lanes that allow customers to scan their own groceries and pay for their purchases using an automated checkout kiosk. The kiosks are monitoredby a single attendant. In recent weeks, management has become concerned that some customers are not scanning all of the items when using the self-checkout lanes. Write a brief memo to your instructor suggesting features and capabilities for the kiosks that would serve as control procedures, ensuring that all items brought through the self-checkout lanes are properly scanned and purchased.
Wholesome and Happy Foods is a farm-to-family grocery store located in the Pacific Northwest. The company recently installed four self-checkout lanes that allow customers to scan their own groceries and pay for their purchases using an automated checkout kiosk. The kiosks are monitored by a single attendant. In recent weeks, management has become concerned that some customers are not scanning all of the items that they bring through the self-checkout lanes. Write a brief memo suggesting features and capabilities for the kiosks that would serve as control procedures, ensuring that all items brought through the self-checkout lanes are properly scanned and purchased.
LAWN WIZARD INC. (MANUAL SYSTEM WITH STAND-ALONE PC SUPPORT) Law Wizard Inc. (LWI) is a manufacturer of a range of walk-behind gasoline lawnmowers, which it markets to garden centers and home improvement centers. LWI employs a batch production process whose inventory management, production planning, and accounting procedures consist of a combination of manual activities supported by stand-alone (non-networked) PC technology. The company is experiencing production delays and cost overruns. Its CEO has hired your firm to review its procedures and make recommendations for improving its operations. The batch production process is initiated by receipt of individual customer orders, which are grouped together in batches for manufacturing. The production planning and control clerk enters the orders into the digital production schedule from his department PC and prints two hard-copy work orders. He sends one of these to cost accounting and the other to the production department. The production department supervisor enters the work order into a PC application. The system automatically creates an open work order record and prints the hard-copy move tickets and materials requisitions. The supervisor distributes the move tickets and two copies of the purchase requisitions to each work center invoked in the production process. Work center employees exchange the material requisitions for assembly parts and other materials needed to complete the batch. If additional parts or materials are needed beyond the standard quantity, the supervisor issues additional material requisitions. As the production is completed in each work center, employees record their labor time for each batch on hard-copy job cards, which they send to cost accounting along with the move ticket. Finally, upon completion of the batch, the supervisor closes the open work order file. The storekeeping clerk files one copy of the material requisition in the department and updates the raw materials inventory file from the computer in his office. The manager then sends the second copy of the material requisition to cost accounting. At the end of the day, the manager prepares a hard-copy journal voucher and sends it to the general ledger department. The cost accounting clerk receives the work order and sets up a WIP account for the batch. Throughout the production period, the clerk also receives move tickets, job tickets, and materials requisitions, which she uses to post to WIP. At the end of each day, the cost accounting clerk prepares a hard-copy journal voucher, which she sends to general ledger department. The journal voucher reflects the total value of WIP and transfers to finished good inventory. The general ledger clerk receives the journal vouchers, posts to the appropriate GL accounts, and files the journal vouchers in the department. Required a. Create a system flowchart of the existing system. b. What risks exist in the system as it is currently designed? c. Describe the changes needed to reduce the risks.
Wilson Petroleum is a local distributor of home heating oil. The firm also installs and services furnaces and heating systems in homes and small commercial buildings. The customer service department maintains sales and service records on current customers who number about 400. Detailed customer records are kept manually in file cabinets, and a small computer system holds all customer names and addresses for mailing and billing purposes. One full-time clerk maintains all the records and handles all billing and customer inquiries. Customers occasionally complain if delivery or service is late, but only one or two mild complaints are received each month. Delays are primarily a result of problems in the field rather than problems in assigning calls in the service department. A consultant has proposed a new computer system that will completely automate the customer service function. It will provide on-line billing and immediate access to all customer records. The cost of the…
Martin Shoes, Inc. manufactures and distributes orthopedic footwear. To sell its products, the marketing department requires sales personnel to call on the shoe retailers within their assigned geographic territories. Each salesperson has a laptop computer, which he or she uses to record sales orders during the day and to send these sales orders to Martin’s network nightly for updating the company’s sales order file. Each day, warehouse personnel review the current sales orders in its file, and where possible, pick the goods and ready them for shipment. (Martin ships goods via common carrier, and shipping terms are generally FOB from the shipping point.) When the shipping department completes a shipment, it also notifies the billing department, which then prepares an invoice for the customer. Payment terms vary by customer, but most are net 30. When the billing department receives a payment, the billing clerk credits the customer’s account and records the cash received. Requirements 1.…
Emery Communications Company is considering the production and marketing of a communications system that will increase the efficiency of messaging for small businesses or branch offices of large companies. Each unit hooked into the system is assigned a mailbox number, which can be matched to a telephone extension number, providing access to messages 24 hours a day. Up to 20 units can be hooked into the system, allowing the delivery of the same message to as many as 20 people. Personal codes can be used to make messages confidential. Furthermore, messages can be reviewed, recorded, cancelled, replied to, or deleted all during the same message playback. Indicators wired to the telephone blink whenever new messages are present. To produce this product, a $1.75 million investment in new equipment is required. The equipment will last 10 years but will need major maintenance costing $150,000 at the end of its sixth year. The salvage value of the equipment at the end of 10 years is estimated…
Law Wizard Inc. (LWI) is a manufacturer of a range of walk-behind gasoline lawnmowers, which it markets to garden centers and home improvement centers. LWI employs a batch production process whose inventory management, production planning, and accounting procedures consist of a combination of manual activities supported by stand-alone (non-networked) PC technology. The company is experiencing production delays and cost overruns. Its CEO has hired your firm to review its procedures and make recommendations for improving its operations. The batch production process is initiated by receipt of individual customer orders, which are grouped together in batches for manufacturing. The production planning and control clerk enters the orders into the digital production schedule from his department PC and prints two hard-copy work orders. He sends one of these to cost accounting and the other to the production department. The production department supervisor enters the work order into a PC…
Muscat Tubes Manufacturing LLC is a manufacturer of television picture tubes. The company must keep various types of materials on hand for the manufacturing process. The store manager is having difficulty keeping track of all the inventory. When compared to last year, the amount of material lost has increased, which is a source of concern for the store manager. He wishes to employ an effective tool for controlling material loss. While exploring, he came across the concept of ABC analysis, which is used by many MNCs around the world. Because he has no background in costing, he is unable to grasp the concept. He asked you to explain the following because you are the company's cost accounting executive: Working/Application of ABC analysis?
Some grocery stores are experimenting with a new technology that allows customers toscan items as they shop. Once the customer is done, he or she completes the transaction onlineand never has to stand in the checkout line. On March 11, 2012The Boston Globereported thatModiv Media’s scan-it-yourself technology [is installed] in about 350 Stop & Shopand Giant stores in the United States. Many consumers have embraced the system;Stop & Shop spokeswoman Suzi Robinson said the service handles about one milliontransactions per month. Estimate the number of customers per day per store who use this self-scanning technology"
ABC Company is a manufacturing company that produces furniture. To improve efficiency and usefulness, ABC Company is constantly incorporating advanced, information technology into its business information systems. When Silver Limited does not have available production capacity, sometimes it purchases furniture from outside suppliers to fulfill customer orders. First, Inventory Control prepares a purchase requisition when inventory approaches the reorder point and sends it to Purchasing and Accounts Payable. Then, Purchasing locates the authorized vendor in the vendor file, prepares a purchase order, and updates the purchase order file. Purchasing then sends the purchase order to Vendor, Receiving, and Accounts Payable. Accounts Payable prepares a summary of all purchase orders issued that day and forwards the total to General Ledger for posting to the GL file. Goods arrive at Receiving with a packing slip. Receiving prepares a receiving report and forwards it with the goods to…