Sthembiso, a recent M.B.A. who is the only cost accountant at a manufacturing plant which is the largest employer in Illovo Valley, a town of about 20,000 people Zama, the plant manager Zama: "Sthembiso, come into my office for a few minutes. You know that the company brass wants to increase the amount of automation in some of our factories. I just got word that this plant will be the first to be automated." Sthembiso: "But the cost and accounting analyses we sent to headquarters last year showed that it wouldn't be profitable to make changes like that in this plant. Why did they pick this one?" Zama: "Apparently, top management wants to try robots and all the high-tech gadgets at one factory, to see if
Sthembiso, a recent M.B.A. who is the only cost accountant at a manufacturing plant which is the largest employer in Illovo Valley, a town of about 20,000 people Zama, the plant manager Zama: "Sthembiso, come into my office for a few minutes. You know that the company brass wants to increase the amount of automation in some of our factories. I just got word that this plant will be the first to be automated." Sthembiso: "But the cost and accounting analyses we sent to headquarters last year showed that it wouldn't be profitable to make changes like that in this plant. Why did they pick this one?" Zama: "Apparently, top management wants to try robots and all the high-tech gadgets at one factory, to see if
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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As an accountant doing an accounting evaluation for the case study, give a brief introduction.
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