Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Textbook Question
Chapter 14, Problem 3MAD
Analyze CSR initiatives at Green Manufacturing
Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company’s operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities:
The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect.
- A. Identify which CSR activities Green Manufacturing should implement.
- B. For each CSR activity you recommend, identify an appropriate related performance metric.
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Citco Company is considering investing up to $500,000 in a sustainability-enhancing project. Its managers have narrowed their choices to three potential projects.
Project A would redesign the production process to recycle raw materials waste back into the production cycle, saving on direct materials costs and reducing the amount of waste sent to the landfill.
Project B would remodel an office building, utilizing solar panels and natural materials to create a more energy-efficient and healthy work environment.
Project C would build a new training center in an underserved community, providing jobs and economic security for the local community.
Required:1. Assuming the cost of capital is 12%, complete the table below by computing the payback period, NPV, profitability index, and internal rate of return. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Do not round intermediate…
Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company’s operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities:
Initialadded cost
Variable cost
Variable savings
Recycle and reuse production material
$5,000
$0.10
per lb. of recycled material
$0.15
per lb. of recycled material
Add solar panels as a source of power
700,000
$1,000
per year
$33,000
per year
Replace assembly room light fixtures with natural light
120,000
$180
per month
$220
per month
The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year effect.
a. Determine if it is viable to recycle and use…
Analyze CSR initiatives at Green Manufacturing
Green Manufacturing is a traditional manufacturing company located in the midwestern United States. The company’s operations manager is developing a strategy to become more CSR-oriented. In an effort to evaluate possible areas where CSR initiatives can be implemented, the manager has gathered the following data regarding three potential CSR activities:
Initial added cost
Variable cost
Variable savings
Recycle and reuse production material
$5,000
$0.10 per lb. of recycled material
$0.15 per lb. of recycled material
Add solar panels as a source of power
700,000
$1,000 per year
$33,000 per year
Replace assembly room light fixtures with natural light
120,000
$180 per month
$220 per month
The recycling activity would carry on indefinitely. The solar panels would have a useful life of 30 years. The replacement of assembly room light fixtures with natural light is assumed to have an 80-year…
Chapter 14 Solutions
Managerial Accounting
Ch. 14 - How does a strategic performance measurement...Ch. 14 - What is the difference between a leading indicator...Ch. 14 - Prob. 3DQCh. 14 - Prob. 4DQCh. 14 - What do strategy maps show, and how do they add...Ch. 14 - Prob. 6DQCh. 14 - Prob. 7DQCh. 14 - Prob. 8DQCh. 14 - How is sustainability distinguishable from...Ch. 14 - How can the balanced scorecard be used to address...
Ch. 14 - 72 Inc. has developed a balanced scorecard with...Ch. 14 - Bluetiful Inc. has the following strategic...Ch. 14 - Moses Moonrocks Inc. has developed a balanced...Ch. 14 - Prob. 4BECh. 14 - Lonnies Shipping Co. is considering switching to...Ch. 14 - Henrys Cafe is a local restaurant that is growing...Ch. 14 - American Express Company is a major financial...Ch. 14 - Eat-n-Run Inc. owns and operates 10 food trucks...Ch. 14 - Prob. 4ECh. 14 - Prob. 5ECh. 14 - The following is the balanced scorecard for Smith...Ch. 14 - Grand Grocery developed a balanced scored with six...Ch. 14 - Coulson and Company is a large retail business...Ch. 14 - Rizzo Goal Inc. produces and sells hockey...Ch. 14 - Silver Lining Inc. has a balanced scorecard with a...Ch. 14 - Two departments within Cougar Gear Inc. are...Ch. 14 - Sunny Nights Inc. is completely powered by the...Ch. 14 - Instructions 1. Label each element of the balanced...Ch. 14 - Strategic initiatives and CSR Get Hitched Inc. is...Ch. 14 - Prob. 3PACh. 14 - Instructions 1. Based on the balanced scorecard...Ch. 14 - Strategic initiatives and CSR Blue Skies Inc. is a...Ch. 14 - Eye Swear Inc. has a balanced scorecard that...Ch. 14 - Den-Tex Company is evaluating a proposal to...Ch. 14 - Analyze CSR initiatives at Boxwood Company Boxwood...Ch. 14 - Analyze CSR initiatives at Green Manufacturing...Ch. 14 - Prob. 1TIFCh. 14 - Blake McKenzie Tax Services is a company serving...Ch. 14 - Young Manufacturing Company is a startup...Ch. 14 - The fundamental concept behind strategic...Ch. 14 - Which of the following statements regarding the...Ch. 14 - The balanced scorecard provides an action plan for...Ch. 14 - Which of the following statements best describes...Ch. 14 - A sign of the successful implementation of a...
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