COST ACCOUNTING W18 CUSTOM W/ACCESS
18th Edition
ISBN: 9781323831427
Author: Horngren
Publisher: PEARSON
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Chapter 1, Problem 1.21E
Key success factors. Vargas Construction Company provides construction services for major projects. Managers at the company believe that construction is a people-management business, and they list the following as factors critical to their success:
- a. Increase spending on employee development to streamline processes.
- b. Foster cooperative relationships with suppliers that allow for more frequent deliveries as and when products are needed.
- c. Integrate tools and techniques that reduce errors in construction projects.
- d. Train employees in green construction techniques to appeal to companies seeking LEED certification.
- e. Benchmark the company’s gross margin percentages against its major competitors.
Match each of the above factors to the key success factors that are important to managers.
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Key success factors.
Vargas Construction Company provides construction services for major projects. Managers at the company believe that construction is a people-management business, and they list the following as factors critical to their success:
Increase spending on employee development to streamline processes.
Foster cooperative relationships with suppliers that allow for more frequent deliveries as and when products are needed.
Integrate tools and techniques that reduce errors in construction projects.
Train employees in green construction techniques to appeal to companies seeking LEED certification.
Benchmark the company’s gross margin percentages against its major competitors.
Match each of the above factors to the key success factors that are important to managers.
Consider an organization that has empowered its employees, asking them to improve the quality, productivity, and responsiveness of their processes that involve repetitive work. This work could arise in a manufacturing setting, such as assembling cars or producing chemicals, or in a service setting, such as processing invoices or responding to customer orders and requests. Clearly, the workers would benefit from feedback on the quality (defects, yields) and process times of the work they were doing to suggest where they could make improvements. Identify the role, if any, for sharing financial information with these employees to help them in their efforts to improve quality, productivity, and process times. Be specific about the types of financial information that would be helpful and the specific decisions or actions that could be made better by supplementing physical and operational information with financial information.
Classify the following decisions as being characteristic of strategic planning, tactical planning, managerial control, or operational control.
Determining the mix of products to manufacture this year
Examining whether the number of defective goods manufactured is within a certain range
Expanding a product line overseas
Determining the best distribution route
Examining whether the cost of raw materials is within a certain range
Examining whether personnel development cost is rising
Employing more automated manufacturing this year
Examining whether the amount of scrap material is acceptable
Building a new plant facility
Examining whether employees’ attitudes are improving
Examining whether production levels are within a predicted range
Making purchasing arrangements with a new supplier
Increasing production capabilities this year by purchasing a more efficient piece of machinery
Closing a plant
Chapter 1 Solutions
COST ACCOUNTING W18 CUSTOM W/ACCESS
Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - What three guidelines help management accountants...
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Which of the following is not a primary function...Ch. 1 - Value chain and classification of costs, computer...Ch. 1 - Prob. 1.18ECh. 1 - Value chain and classification of costs, fast-food...Ch. 1 - Key success factors. Dominion Consulting has...Ch. 1 - Key success factors. Vargas Construction Company...Ch. 1 - Planning and control decisions. Gregor Company...Ch. 1 - Planning and control decisions. Gavin Adams is the...Ch. 1 - Prob. 1.24ECh. 1 - Five-step decision-making process, service firm....Ch. 1 - Professional ethics and reporting division...Ch. 1 - Professional ethics and reporting division...Ch. 1 - Planning and control decisions, Internet company....Ch. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Management accounting guidelines. For each of the...Ch. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Budgeting, ethics, pharmaceutical company. Chris...Ch. 1 - Professional ethics and end-of-year actions. Linda...Ch. 1 - Professional ethics and end-of-year actions....Ch. 1 - Ethical challenges, global company environmental...
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