HORNGRENS COST ACCOUNTING W/ACCESS
16th Edition
ISBN: 9781323687604
Author: Datar
Publisher: PEARSON
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Textbook Question
Chapter 19, Problem 19.26E
Waiting time, cost considerations, customer satisfaction. Refer to the information presented in Exercise 19-25. The head of the registration advisors at SMU has decided that the advisors must finish their advising in 2 weeks (10 working days) and therefore must advise 420 students a day. However, the average waiting time given a 12-minute advising period will result in student complaints, as will reducing the average advising time to 10 minutes. SMU is considering two alternatives:
- a. Hire two more advisors for the 2-week (10-working day) advising period. This will increase the available number of advisors to 12 and therefore lower the average waiting time.
- b. Increase the number of days that the advisors will work during the 2-week registration period to 6 days a week. If SMU increases the number of days worked to 6 per week, then the 10 advisors need only see 350 students a day to advise all of the students in 2 weeks.
- 1. What would the average wait time be under alternative A and under alternative B?
- 2. If advisors earn $100 per day, which alternative would be cheaper for SMU (assume that if advisors work 6 days in a given workweek, they will be paid time and a half for the sixth day)?
- 3. From a student satisfaction point of view, which of the two alternatives would be preferred? Why?
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Waiting time, service industry. The registration advisors at a small Midwestern university (SMU) help 4,200 studentsdevelop their class schedules and register for classes each semester. Each advisor works for 10 hours a day during theregistration period. SMU currently has 10 advisors. While advising an individual student can take anywhere from 2 to 30minutes, it takes an average of 12 minutes per student. During the registration period, the 10 advisors see an average of300 students a day on a rst-come, rstserved basis.
1. Using the formula on page 747, calculate how long the average student will have to wait in the advisor’s office beforebeing advised.
2. The head of the registration advisors would like to increase the number of students seen each day because at 300students a day it would take 14 working days to see all of the students. This is a problem because the registration periodlasts for only 2 weeks (10 working days). If the advisors could advise 420 students a day, it would…
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In the seminars each student works at a personal computer, practicing
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currently planning a two-day seminar on the use of Microsoft Excel in
statistical analysis. The projected fee for the seminar is $600 per
student. The cost for the conference room, instructor compensation,
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for its seminars at a cost of $60 per computer per day.
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A professional division at a business school provides several development programs that have been tailored to the specific training needs of both the public and private sectors. The program director is planning to offer a one-full-day course in risk management to be sold at $2,250 plus orientation fee (5%) per participant. The division incurs a cost of $45,000 for promotion, classroom space, staff and instructor’s salary, as well as a cost of $240 per participant for refreshments, lunch, course material, a gift package, and a framed certificate of completion. How many participants need to register in the course for it to be worthwhile to offer it? Round to two decimal places.
Group of answer choices
21.20
26.86
36.72
Chapter 19 Solutions
HORNGRENS COST ACCOUNTING W/ACCESS
Ch. 19 - Describe two benefits of improving quality.Ch. 19 - Prob. 19.2QCh. 19 - Name two items classified as prevention costs.Ch. 19 - Give two examples of appraisal costs.Ch. 19 - Distinguish between internal failure costs and...Ch. 19 - Describe three methods that companies use to...Ch. 19 - Companies should focus on financial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - Give two examples of nonfinancial measures of...Ch. 19 - When evaluating alternative ways to improve...
Ch. 19 - Distinguish between customer-response time and...Ch. 19 - Prob. 19.12QCh. 19 - Give two reasons why delays occur.Ch. 19 - Companies should always make and sell all products...Ch. 19 - Prob. 19.15QCh. 19 - Rector Corporation is examining its quality...Ch. 19 - Six Sigma is a continuous quality improvement...Ch. 19 - Costs of quality. (CMA, adapted) Osborn, Inc.,...Ch. 19 - Costs of quality analysis. Adirondack Company...Ch. 19 - Costs-of-quality analysis. Safe Travel produces...Ch. 19 - Costs of quality, quality improvement. iCover...Ch. 19 - Prob. 19.22ECh. 19 - Prob. 19.23ECh. 19 - Waiting time. Its a Dogs World (IDW) makes toys...Ch. 19 - Waiting time, service industry. The registration...Ch. 19 - Waiting time, cost considerations, customer...Ch. 19 - Nonfinancial measures of quality and time. For the...Ch. 19 - Nonfinancial measures of quality, manufacturing...Ch. 19 - Statistical quality control. Harvest Cereals...Ch. 19 - Quality improvement, Pareto diagram,...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Quality improvement, relevant costs, and relevant...Ch. 19 - Waiting times, manufacturing cycle times. The...Ch. 19 - Prob. 19.34PCh. 19 - Manufacturing cycle times, relevant revenues, and...Ch. 19 - Compensation linked with profitability, waiting...Ch. 19 - Ethics and quality. Weston Corporation...Ch. 19 - Prob. 19.38P
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