Managerial Accounting
Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
bartleby

Videos

Textbook Question
Book Icon
Chapter 13, Problem 3E

Lean principles

Rag Swag Inc. manufactures various styles of men’s casual wear. Shirts are cut and assembled by a workforce that is paid by piece rate. This means that they are paid according to the amount of work completed during a period of time. To illustrate, if the piece rate is $0.10 per sleeve assembled, and the worker assembles 800 sleeves during the day, then the worker would be paid $80 (800 × $0.10) for the day’s work.

The company is considering adopting a lean manufacturing philosophy by organizing work cells around various types of products and employing pull manufacturing. However, no change is expected in the compensation policy. On this point, the manufacturing manager stated the following:

“Piecework compensation provides an incentive to work fast. Without it, the workers will just goof off and expect a full day’s pay. We can’t pay straight hourly wages—at least not in this industry.”

How would you respond to the manufacturing manager’s comments?

Blurred answer
Students have asked these similar questions
Identify and explain the key components of the COSO Internal Controls Framework.Why is the framework important for effective internal controls within an organization?
Beech Corporation is a merchandising company that is preparing a master budget for the third quarter. The company’s balance sheet as of June 30th is shown below: Beech CorporationBalance SheetJune 30Assets     Cash    $ 90,000Accounts receivable    136,000Inventory    62,000Plant and equipment, net of depreciation    210,000Total assets    $ 498,000Liabilities and Stockholders’ Equity     Accounts payable    $ 71,100Common stock    327,000Retained earnings    99,900Total liabilities and stockholders’ equity    $ 498,000Beech’s managers made the following additional assumptions and estimates: Estimated sales for July, August, September, and October will be $210,000, $230,000, $220,000, and $240,000, respectively.All sales are on credit and all credit sales are collected. Each month’s credit sales are collected 45% in the month of sale and 55% in the month following the sale. All of the accounts receivable at June 30 will be collected in July.Each month’s ending inventory must equal 20%…
Identify the key steps involved in forming an audit opinion.  How do auditors gather and evaluate evidence to support their conclusions?

Chapter 13 Solutions

Managerial Accounting

Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Text book image
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Text book image
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
What is Business Analysis?; Author: WolvesAndFinance;https://www.youtube.com/watch?v=gG2WpW3sr6k;License: Standard Youtube License