a. Determine if it is viable to recycle and use the products from the given information. a. Yes, the company makes a net savings of $0.05 per lb. and the years of paying back the initial cost is 21.87 years. Therefore the project can be implemented. b. The company makes a net savings of $0.05 per lb. and the years of paying back the initial cost is 21.87 years. Therefore the project cannot be implemented. c. The initial cost of recycled materials is so high and therefore, the project should not be implemented. d. None of the above. Determine from the given information if it is viable to change the assembly room light fixtures. a. The additional cost is very high and the net savings per year is low. Therefore, the project should not be implemented. b. The savings in the long run will be significantly less so this project should not be implemented. c. The useful life of the project and the recovery time of the initial investment do not match. d. All the above. b. From the given information, identify the performance metric for recycle and reuse production. a. Pounds of material recycled. b. Utility cost. c. Initial investment and its recovery time. d. None of the above. From the given information, identify the performance metric for solar panel as the source of power. a. Pounds of material recycled. b. Utility cost. c. Initial investment and its recovery time. d. None of the above. From the given information, identify the performance metric for replacing the assembly room light fixture with natural light. a. Pounds of material recycled. b. Utility cost. c. Initial investment and its recovery time. d. None of the above.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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 effect.
a. Determine if it is viable to recycle and use the products from the given information.
a. Yes, the company makes a net savings of $0.05 per lb. and the years of paying back the initial cost is 21.87 years. Therefore the project can be implemented.
b. The company makes a net savings of $0.05 per lb. and the years of paying back the initial cost is 21.87 years. Therefore the project cannot be implemented.
c. The initial cost of recycled materials is so high and therefore, the project should not be implemented.
d. None of the above.
Determine from the given information if it is viable to change the assembly room light fixtures.
a. The additional cost is very high and the net savings per year is low. Therefore, the project should not be implemented.
b. The savings in the long run will be significantly less so this project should not be implemented.
c. The useful life of the project and the recovery time of the initial investment do not match.
d. All the above.
b. From the given information, identify the performance metric for recycle and reuse production.
a. Pounds of material recycled.
b. Utility cost.
c. Initial investment and its recovery time.
d. None of the above.
From the given information, identify the performance metric for solar panel as the source of power.
a. Pounds of material recycled.
b. Utility cost.
c. Initial investment and its recovery time.
d. None of the above.
From the given information, identify the performance metric for replacing the assembly room light fixture with natural light.
a. Pounds of material recycled.
b. Utility cost.
c. Initial investment and its recovery time.
d. None of the above.
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