Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663



Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663
Chapter 12, Problem 6DQ
Textbook Problem

Identify and define four different ways to manage activities so that costs can be reduced.

To determine

State the four different ways to manage activities so that costs can be reduced and explain them.

Explanation of Solution

The activity management can able to reduce costs in the following four ways as follows:

1.    Activity elimination

2.    Activity selection

3.    Activity reduction

4.    Activity sharing

  1. 1. Activity elimination: Activity elimination focuses on identification and removing non-value-added activities. For example, the activity of enhancing production is needed to ensure that customers’ needs are met and this activity is needed only if the organization cannot be able to produce efficiently.
  2. 2. Activity selection: Activity selection is the process of opting for the most appropriate activity from the set of activities that are caused by competing strategies...

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Chapter 12 Solutions

Cornerstones of Cost Management (Cornerstones Series)
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Ch. 12 - Explain why a detailed task description is needed...Ch. 12 - What are some of the reasons that ABM...Ch. 12 - Explain how lack of integration of an ABM system...Ch. 12 - Describe a financial-based responsibility...Ch. 12 - Describe an activity-based responsibility...Ch. 12 - Cicleta Manufacturing has four activities:...Ch. 12 - Assume that at the beginning of 20x2, Cicleta...Ch. 12 - Gordon Company produces custom-made machine parts....Ch. 12 - Foy Company has a welding activity and wants to...Ch. 12 - Uchdorf Manufacturing just completed a study of...Ch. 12 - Harvey Company produces two models of blenders:...Ch. 12 - For the following two activities, ask a series of...Ch. 12 - Thayne Company has 30 clerks that work in its...Ch. 12 - Suppose that clerical erroreither Thaynes or the...Ch. 12 - Refer to Exercise 12.8. Suppose that clerical...Ch. 12 - Refer to Exercise 12.10. Suppose that Thayne...Ch. 12 - For Situations 1 through 6, provide the following...Ch. 12 - Maquina Company produces custom-made machine...Ch. 12 - Sanford, Inc., has developed value-added standards...Ch. 12 - Refer to Exercise 12.14. Suppose that for 20x2,...Ch. 12 - Jane Erickson, manager of an electronics division,...Ch. 12 - For each of the following situations, two...Ch. 12 - Which of the following are examples of...Ch. 12 - A company is spending 70,000 per year for...Ch. 12 - Which of the following is likely to be used to...Ch. 12 - Activity-based management includes both process...Ch. 12 - The activity of moving materials uses four...Ch. 12 - Joseph Fox, controller of Thorpe Company, has been...Ch. 12 - Baker, Inc., supplies wheels for a large bicycle...Ch. 12 - Novo, Inc., wants to develop an activity flexible...Ch. 12 - Joseph Hansen, president of Electronica, Inc., was...Ch. 12 - Tom Young, vice president of Dunn Company (a...Ch. 12 - Bienestar, Inc., has two plants that manufacture a...Ch. 12 - Kelly Gray, production manager, was upset with the...Ch. 12 - Douglas Davis, controller for Marston, Inc.,...

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