CRITICAL ISSUES What are the strong points of Stewart Box company’s current sytem? Marketing Stewart Box company differentiated itself from competition by focusing on custom-made orders and targeting a small niche market only. By doing this they are able to actively cater to its customer’s individual wishes, and strictly adhere to promised delivery dates. What are the weak points of Stewart Box company’s current sytem? Marketing Reach Stewart Box Company has a very limited customer base. They
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budget includes estimated manufacturing overhead cost of $3,000,000. CBI assigns manufacturing overhead to products on the basis of direct labor-hours. The expected direct labor cost totals $600,000, which represents 50,000 hours of direct labor time. Based on the sales budget and expected raw materials costs, the company will purchase and use $6,000,000 of raw materials (mostly coffee beans) during the year. The expected costs for direct materials and direct labor for one-pound bags of two of the company’s
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of each year, based on actual expenses in prior years, the general industry condition and competitive trends. Costs continue to rise for customers at normal circumstances which may due to various external reasons like inflations, economic situations etc. The current costing system could not cope with the highly competitive market, and the inflation will cause the costs keep increasing to a level that the selling price might not able to cover it. It is because the selling price in based on actual expenses
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Time-Driven ABC Companies have shied away from activity based costing, because it was not an accurate assessment of operations, time consuming and too expensive to build and maintain. As a result managers have veered away from using traditional ABC in their organizations, and needed to find a solution to the problem. The new approach relies on informed managerial estimates rather than on employee surveys. It also provides managers with a far more flexible cost model to capture all the complex
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POLYSAR Canada¶s largest chemical company. The Rubber Group accounts for 46% of Polysar¶s sales. Primary products for this group are butyl and halobutyl. Principal customers for these products are tire manufacturers. Rubber Group has two divisions ± NASA (North America & South America) ± EROW (Europe & elsewhere) POLYSAR Butyl is manufactured by NASA at its Sarnia 2 plant, and by EROW at its Antwerp plant. Sarnia 2 is a relatively new facility, dedicated entirely to butyl production
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Revenue Advertising, CEO salary, etc. $ 30,000 per year. * These manufacturing overhead costs are company-wide and fixed: they do not vary with the volume of manufacturing activity. The company allocates overhead costs using the traditional method. Its activity base is
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materials, we make sure that our products are eco-friendly and hazard free. Cheaper than products currently in the market, we make sure that you get more value for your money by offering products of upmost quality. Our signature product is a plant-based paint like no other. The Opuntia ficus-indica is an arid-climate, edible plant characteristic of its rich nutrient and mineral content. Serving as a food in countries like Mexico, it can also be used as a primary component in insulating oils. Its properties
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accounting periods. Is an organization that follows this approach likely to encounter any problems? Explain. Guided Response: Review your peers’ posts and respond to at least two of your classmates. Describe how job order costing, process costing, or activity based costing could resolve or exacerbate the issues your classmates discussed in their initial posts. Home Work Hour aims to provide quality study notes and tutorials to the students of ACC 206 Week 4 DQ1 Issues in order to ace their studies. ACC
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Other Financial Management Techniques The President of EEC has decided to adopt the balanced scorecard. The balanced scorecard translates an organization’s mission and strategy into operational objectives and performance measures for four different perspectives. The President would like for the managerial accounting team to continue research and explain how to use a balanced scorecard to measure unethical behavior with EEC. First as the team is going to obtain research in how to transition to a
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Conversely as the production of hamburgers decreases so does the total annual cost of the raw materials. Building rent: Building rent is a fixed cost. Fixed costs are un-expired assets or expenses whose total does not change in proportion to the activity of a business, within the relevant time period or scale of production. (Fixed Cost) Building rent is a constant cost throughout the year or the life of the contract. This cost does not change with an increase or decrease in production of hamburgers
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