...per day. 1. What are the minimum and maximum cycle times? Minimum is 2.4 minutes, maximum is 18 minutes. 2. What range of output is theoretically possible for the line? 25 units to 187.5 units. 3. What is the minimum number of workstations needed if the maximum output rate is to be sought? Eight. 4. What cycle time will provide an output rate of 125 units per day? 3.6 minutes. 5. What output potential will result if the cycle time is (1) 9 minutes? (2) 15 minutes? (1) 50 units. (2) 30 units. * A manager wants to assign tasks to workstations as efficiently as possible, and achieve an hourly output of 33⅓ units. Assume the shop works a 60-minute hour. Assign the tasks shown in the accompanying precedence diagram (times are in minutes) to workstations using the following rules: 1. In order of most following tasks. Tiebreaker: greatest positional weight. 2. In order of greatest positional weight. 3. What is the efficiency? * A manager wants to assign tasks to workstations as efficiently as possible, and achieve an hourly output of 4 units. The department uses a working time of 56 minutes per hour. Assign the tasks shown in the accompanying precedence diagram (times are in minutes) to workstations using the following rules: 1. In order of most following tasks. Tiebreaker: greatest positional weight. 2. In order of greatest positional weight. 3. What is the efficiency? * A producer of inkjet printers is planning...
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...ACTIVITY-BASED COSTING CHAPTER REVIEW UNIT COSTS 1. Functional-based and activity-based costing assigns costs to cost objects such as products and customers. Once costs are assigned to the cost object, the unit cost is calculated by dividing the total cost assigned to the units produced by the number of units produced. 2. Unit cost information is used to: ■ value inventory ■ determine cost of goods sold, which affects income ■ determine bids to give to potential customers ■ decide whether to make or buy a product ■ decide whether to accept or reject a special order ■ decide whether to keep or drop a product line ■ decide whether to introduce a new product 3. Different cost information is needed for different purposes. 4. For external reporting, product costs include direct materials, direct labor, and overhead. 5. Cost measurement involves determining the dollar amount of direct materials, direct labor, and overhead used in production. 6. Two cost measurement systems are: ■ actual costing ■ normal costing 7. Cost assignment involves associating costs with units produced. 8. Two cost assignment systems are: ■ functional-based costing ■ activity-based costing Production of Unit Cost Information 9. Actual costing assigns actual costs of direct materials, direct labor, and overhead to products. 10. Actual cost systems are rarely used because they cannot provide accurate unit cost information on a timely basis. 11. Normal...
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...process costing in their manufacturing area include chemical processing, oil refining, pharmaceuticals, plastics, brick and tile manufacturing, semiconductor chips, beverages, and breakfast cereals. 17-2 Process costing systems separate costs into cost categories according to the timing of when costs are introduced into the process. Often, only two cost classifications, direct materials and conversion costs, are necessary. Direct materials are frequently added at one point in time, often the start or the end of the process. All conversion costs are added at about the same time, but in a pattern different from direct materials costs. Conversion costs are often added throughout the process, which can of any length of time, lasting from seconds to several months. 17-3 Equivalent units is a derived amount of output units that takes the quantity of each input (factor of production) in units completed or in incomplete units in work in process, and converts the quantity of input into the amount of completed output units that could be made with that quantity of input. Each equivalent unit is comprised of the physical quantities of direct materials or conversion costs inputs necessary to produce output of one fully completed unit. Equivalent unit measures are necessary since all physical units are not completed to the same extent at the same time. 17-4 The accuracy of the estimates of completion depends on the care and skill of the estimator and the nature of the process. Semiconductor chips...
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...This nugget, the next in 3.0 Managing Resources and Assignments, is focused on 3.2 and 3.3. 3.2 is going to be a bit of a review. We've already talked about the Task Types, Fixed Work, Fixed Units and and Fixed Duration, but we're going to apply the Resources. So 00:00:19 we are going to assign the Resources that we've already created in the previous nugget and we're going to further explore W=UxD because they all work together. Depending on the Task Type, depending on the Units, the Resources, depending on the Work and the Duration, it's going to directly impact on the schedule calculations. So this nugget is really going to put it 00:00:42 all together. We already have our Tasks in Microsoft Project. We already have our Resources in Microsoft Project. This nugget 3.2, 3.3 is really going to put it all together and create our effective Project Schedule. And we'll start off in this basic plan that I have called Basic Scheduling Project. It's available to you on CBTNuggets.com. 00:01:06 And if we look at it quickly, there are five Tasks in this project plan, created in two parallel dependency streams - Tasks 1 through Task 3 and Tasks 4 through Task 5. And if we look at my Resource Sheet I have a number of resources. I have three human resources all 00:01:27 of Type Work, Initials R1 of R3 and only R1 and R3 are available to the project full time. And I'm not going to get into the breaking down of the resources into probably a more realistic 90% simply because it makes...
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...the method of assigning total cost to many identical or similar units. Each unit receives the same or similar amounts of direct material costs, direct labor costs, and indirect manufacturing costs. Unit costs are computed by dividing total costs incurred by the number of units of output from the production process. The main difference between process costing and job costing is the extend of averaging used to compute unit costs of products or services. o Focus on individual units o Focus on cost components (Beginning WIP and Currently added. o Focus on when costs are introduced into the process. o Focus on beginning and ending inventories and percentage of completion. o This system in the assembly department has a single direct-cost category (DM), and a single indirect-cost category (conversion costs: DL and MOH). Assuming that we only use direct materials are added at one time and conversion costs are added evenly after that ➢ Equivalent Units of Production (EUP) – a derived amount of output units that (1) takes the quantity of each input (factor of production) in units completed and in incomplete units of work in process and (2) converts the quantity of input into the amount of completed output units that could be produced with that quantity of input. EUP is calculated separately for each input (DM, DL or MOH (CC). Ex: If 50 physical units were started but not completed by the end of the period, and they...
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...carefully, if not twice. Working with Effort-Driven Scheduling How a task reacts to the addition and removal of resources is defined by the scheduling method and the task type settings. In MS Project, the default scheduling method is effort-driven scheduling. Effort-driven scheduling extends or shortens the duration of a task to accommodate changes to resources but doesn't change the total work for the task. Work is the amount of effort, or number of hours, resources put into a task. The total work for a task is determined by the duration estimate for the task and the initial resource assignment using the following formula: Work = Duration * Units For example, say you give a task the duration of one day (or eight hours based upon a normal working day). If the initial resource assignment is two units (200%) of a particular resource, the total work for the task will be 16 hours. 16 hours = 1 Day (8 hours) * 200% As resources are added or removed after the initial assignment, the amount of work is not recalculated, but redistributed among the...
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...Objectives - Microsoft 2010 * Create a list of resources * Assign resources to tasks * Enter resource information * Assign costs to resources and tasks * Assign variable resource pay rates and costs rate tables Resources are the people, equipment, and materials necessary to complete a task. MS Project focuses on two aspects of resources: availability and cost. Availability determines when a specific resource can work on a task and how much work they can do and cost refers to how much money will be required to pay for that resource. MS Project works with two types of resources: work resources and material resources. Work resources are the people and equipment that do the work of the project. These can be a single individual, a group of people who have common skills (such as electrician), or equipment (such as a truck or diagnostic tool). Equipment resources need not be portable; they can be fixed, such as a conference room or lab. Material resources are consumables that you use up during the project, such as cabling or bricks. We will be creating our resources and assigning them to tasks. Please follow all instructions carefully! Adding Resources 1. Log onto Windows. 2. Open your completed file MyLab1b_XXX.mpp (or download the MyLab1b_XXX.mpp file from Doc Sharing.) Check the addendum at the end of this lesson to make sure that your beginning file is correct. If it is not, then correct your file as needed or download...
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...budget is and explain its benefits 2. Describe the advantages of budgets 3. Prepare the operating budget and its supporting schedules 4. Use computer-based financial planning models in sensitivity analysis 5. Explain kaizen budgeting and how it is used for cost management 6. Prepare an activity-based budget 7. Describe responsibility centers and responsibility accounting 8. Explain how controllability relates to responsibility accounting II. CHAPTER SYNOPSIS Chapter 6 introduces the important topic of budgets. Budgets are the primary financial planning tool used by businesses. The chapter explains how businesses use budgets and budgeting as part of the management process. The concept of responsibility centers and responsibility accounting is also discussed and related to the concept of controllability. III. CHAPTER OUTLINE Budgets represent in financial and nonfinancial terms the plans of a business for a specified period of time. Financial budgets are, in essence, financial statements that report expected or proposed future activity instead of what has already occurred. Supporting these financial budgets are nonfinancial budgets that report expected or proposed future activity in areas such as number of employees, new products developed, and number of units produced or sold. (Exhibit 6-1 illustrates the link among strategy, planning, and budgets.) Do Chapter Quizzes # 1 and 2. Assign Problem 6-31. Budgets...
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...costing is highly procedural. The chapter also explains how operation-costing systems determine the cost of products. The Appendix to the chapter describes the standard-costing method of process costing. Case 1 Case 2 Case 3 Beginning Inventory No No Yes Ending Inventory No Yes Yes 3. Case 1 is simple because there is no workin-process inventory in the Assembly Department. That is, all units of SG-40 are started and completed during the accounting period. The unit cost of the 400 units of SG-40 in this case is computed as follows: Direct material costs $32,000 ÷ 400 Conversion costs $24,000 ÷ 400 Cost per unit $ 80 60 $140 Highlights 1. In a process-costing system, the unit cost of a product (or service) is obtained by assigning total costs to many identical or similar units of output. A process-costing system separates costs into cost categories according to the timing of when costs are introduced into the process. Often only two cost classifications—direct materials and conversion costs—are necessary to assign costs to products. The key feature of process costing is that it averages production costs over all units produced. Industries using process costing include chemical, pharmaceutical, and semiconductor. 2. The chapter uses three...
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... Discuss the limitations of using only unit-based drivers to assign costs. 2. Provide a detailed description of activity-based product costing. 3. Describe how homogeneous cost pools can be used to reduce the number of activity rates. 4. Describe activity-based system concepts including an ABC relational database and ABC software. chapter summary This chapter explains how activity-based costing systems produce more accurate product cost information than traditional costing systems that use unit-based drivers. Potential users of ABC systems are those companies that produce multiple products, have high degree of product diversity, and have a significant percentage of nonunit-level overhead costs. This chapter also outlines the essential steps in designing an ABC system in order for it to be implemented successfully. The chapter concludes by describing an ABC relational database and ABC software. Learning Objective #1 CHAPTER REVIEW I. Unit-Based Product Costing A. Functional-based costing uses only unit-based drivers to assign overhead costs to products. a. Functional-based costing first assigns overhead costs to a functional unit, creating plant or departmental cost pools. Next, these pooled costs are assigned to products using only unit-based drivers. b. Unit-based drivers are factors that cause changes in cost as the units produced change. n Functional-based costing uses only unit-based drivers because it assumes that overhead...
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...Priorities and Delegation Paper Delegation and assignment of nursing activities are important parts of the implementation component of practice for the registered nurse and licensed practical nurse. The licensed nurse may delegate and assign nursing care activities to other licensed nurses or unlicensed assistive personnel. This is based on their own licensed level, assessment of the client’s status, clinical competence of licensed and unlicensed personnel, and factors in each practice setting. Before assigning and delegating nursing activities to staff, the nurse needs information about the staff so that they can confidently assign them to the patients. One must know the legal roles in RNs and LPNs before delegation can occur. Delegation by RNs and LPNs must be within their scope or practice. Duties and responsibilities vary in different states. According to the Massachusetts Nurse Practice Act in the state of Massachusetts, nurses may assign and delegate the UAP any activities that do not require nursing assessment and judgment during implementation. In addition, they can allow the UAP to collect, report, and document simple data. Furthermore, UAP may be involved in activities that assist the patient in meeting basic human needs such as nutrition, hydration, mobility, comfort, elimination, socialization, rest and hygiene. In the state of Massachusetts, there are four nursing activities that must not be delegated to the patients. These activities include...
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...warehouses) while satisfying both the supply limits and the demand requirement. Because of the special structure of the Transportation Problem the Simplex Method of solving is unsuitable for the Transportation Problem. The model assumes that the distributing cost on a given rout is directly proportional to the number of units distributed on that route. Generally, the transportation model can be extended to areas other than the direct transportation of a commodity, including among others, inventory control, employment scheduling, and personnel assignment. Transportation was one of the earliest application areas of operations research, and important transportation problems, such as the traveling salesman problem, vehicle routing problem, and traffic assignment problem, contributed to fundamental knowledge in operations research. Transportation remains one of the most important and vibrant areas of operations research. The transportation model has some rigid characteristic, which are: * A product is transported from a number of sources to a number of destinations at the minimum possible cost * Each source is able to supply a fixed number of units of the product, and each destination has a fixed demand for the product. Origin Points (or sources) can be factories, warehouses, car rental...
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...TABLE OF CONTENTS PAGE NO. CHAPTER 1- INTRODUCTION 1.1 INTRODUCTION 6 1.2 WHAT IS OFDMA? 9 CHAPTER 2 - SUBCARRIER ALLOCATION SCHEMES 2.1 STATIC SUBCARRIER ALLOCATION 12 2.2 DYNAMIC SUBCARRIER ALLOCATION 14 2.2.1 THE PROPOSED DSA SCHEME 15 CHAPTER 3- FLOW CHART AND ALGORITHM 4.1 FLOW CHART 17 4.1.1 MAIN FLOWCHART 17 4.1.2 WHEN 2 USERS FALL IN RANGE NUMBERED 3,5,8,14 20 4.1.3 WHEN 3 USERS FALL IN RANGE NUMBERED 3,5,8,14 22 4.2 ALGORITHM 24 CHAPTER 5-BLOCK DIAGRAMS 5.1 CONTROL FRAME TRANSCEIVER 28 5.2 DATA TRANSMISSION 29 5.3 DATA RECEPTION 31 CHAPTER 6- IMPLEMENTATION AND RESULTS 6.1 MATLAB 34 6.1.1 INSTRUCTIONS USED IN CODE 35 6.2 CONTROL FRAME TRANSMISSION AND RECEPTION 39 6.3 DATA GENERATION...
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...for production equipment. Fixed manufacturing overhead. The costs to operate a manufacturing facility, which do not vary with production volume. Examples are rent and insurance. It is possible to use activity-based costing (ABC) to allocate overhead costs for inventory valuation purposes under the absorption costing methodology. However, ABC is a time-consuming and expensive system to implement and maintain, and so is not very cost-effective when all you want to do is allocate inventory to be in accordance with GAAP or IFRS. You should charge sales and administrative costs to expense in the period incurred; donot assign them to inventory, since these items are not related to goods produced, but rather to the period in which they were incurred. Absorption Costing Steps The steps required to complete a periodic assignment of costs to produced goods is: 1. Assign costs to...
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...cost-allocation method. 2. Quality control costs may be a direct cost of the Manufacturing Department, but an indirect cost of an individual job. Answer: True Difficulty: 2 Objective: 1 Terms to Learn: job 3. Cost objects may be jobs, products, or customers. Answer: True Difficulty: 1 Objective: 1 Terms to Learn: job 4. The cost driver of an indirect cost is often used as the cost-allocation base. Answer: True Difficulty: 1 Objective: 1 Terms to Learn: cost-allocation base 5. A company may use job costing to assign costs to different product lines and then use process costing to calculate unit costs within each product line. Answer: True Difficulty: 2 Objective: 2 Terms to Learn: job-costing system, process-costing system 6. Job costing is commonly used to estimate costs in beverage production. Answer: False Difficulty: 1 Objective: 2 Terms to Learn: job-costing system, process-costing system Process costing is commonly used to estimate costs in beverage production. 7. In a job-costing system the cost object is an individual unit, batch, or lot of a distinct product or service. Answer: True Difficulty: 1 Objective: 2 Terms to Learn: job-costing system 8. Actual costing is a method of job costing that allocates an indirect cost based on the actual indirect-cost rate times the actual quantity of the cost-allocation base. Answer: True Difficulty: 1 Objective: 2 Terms to...
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