COST ACCOUNTING
16th Edition
ISBN: 9781323169261
Author: Horngren
Publisher: PEARSON C
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Textbook Question
Chapter 1, Problem 1.21E
Key success factors. Vargas Construction Company provides construction services for major projects. Managers at the company believe that construction is a people-management business, and they list the following as factors critical to their success:
- a. Increase spending on employee development to streamline processes.
- b. Foster cooperative relationships with suppliers that allow for more frequent deliveries as and when products are needed.
- c. Integrate tools and techniques that reduce errors in construction projects.
- d. Train employees in green construction techniques to appeal to companies seeking LEED certification.
- e. Benchmark the company’s gross margin percentages against its major competitors.
Match each of the above factors to the key success factors that are important to managers.
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Key success factors.
Vargas Construction Company provides construction services for major projects. Managers at the company believe that construction is a people-management business, and they list the following as factors critical to their success:
Increase spending on employee development to streamline processes.
Foster cooperative relationships with suppliers that allow for more frequent deliveries as and when products are needed.
Integrate tools and techniques that reduce errors in construction projects.
Train employees in green construction techniques to appeal to companies seeking LEED certification.
Benchmark the company’s gross margin percentages against its major competitors.
Match each of the above factors to the key success factors that are important to managers.
As a Human Resource Consultant, you have been commissioned to develop a LeadershipDevelopment Plan for Douglas and Associates Construction Limited. This plan should encompass thefollowing components:1. The Role of Leadership in Employee Motivation: Examine how effective leadership contributes toenhancing employee motivation within the organization.
2. Identification of the most appropriate leadership style: Determine the leadership style that is mostsuitable for Douglas and Associates, considering the company’s culture and operational needs.
3. Recommendations for a Leadership Development Plan: Propose a comprehensive leadershipdevelopment strategy that outlines three (3) specific training initiatives aimed at fostering leadershipskills within the organisation
Overview
In the article for this assignment, Plaskett shows that ERP systems are helpful for companies to establish needed agility. ERP systems are also discussed in length in Chapter 6 of your textbook. Accurate, up-to-date information on business products can help reduce production times and make businesses more effective.
Read this article before you begin the assignment:
ERP System Enables Gearmaker to Achieve Needed Agility.
Instructions
Using the same framework used by Plaskett, answer the following in 3 pages of paper
Summarize the factors that made the ERP system successful in Gearmaker.
Apply the same ERP analysis process to a company of your choice and describe the potential impact on its operations.
Use at least three quality resources in this assignment. Note: Wikipedia and similar websites do not qualify as quality resources.
This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and…
Chapter 1 Solutions
COST ACCOUNTING
Ch. 1 - How does management accounting differ from...Ch. 1 - Management accounting should not fit the...Ch. 1 - How can a management accountant help formulate...Ch. 1 - Describe the business functions in the value...Ch. 1 - Explain the term supply chain and its importance...Ch. 1 - Management accounting deals only with costs. Do...Ch. 1 - How can management accountants help improve...Ch. 1 - Prob. 1.8QCh. 1 - Prob. 1.9QCh. 1 - What three guidelines help management accountants...
Ch. 1 - Prob. 1.11QCh. 1 - Prob. 1.12QCh. 1 - Prob. 1.13QCh. 1 - Prob. 1.14QCh. 1 - Prob. 1.15QCh. 1 - Which of the following is not a primary function...Ch. 1 - Value chain and classification of costs, computer...Ch. 1 - Prob. 1.18ECh. 1 - Value chain and classification of costs, fast-food...Ch. 1 - Key success factors. Dominion Consulting has...Ch. 1 - Key success factors. Vargas Construction Company...Ch. 1 - Planning and control decisions. Gregor Company...Ch. 1 - Planning and control decisions. Gavin Adams is the...Ch. 1 - Prob. 1.24ECh. 1 - Five-step decision-making process, service firm....Ch. 1 - Professional ethics and reporting division...Ch. 1 - Professional ethics and reporting division...Ch. 1 - Planning and control decisions, Internet company....Ch. 1 - Prob. 1.29PCh. 1 - Prob. 1.30PCh. 1 - Management accounting guidelines. For each of the...Ch. 1 - Prob. 1.32PCh. 1 - Prob. 1.33PCh. 1 - Budgeting, ethics, pharmaceutical company. Chris...Ch. 1 - Professional ethics and end-of-year actions. Linda...Ch. 1 - Professional ethics and end-of-year actions....Ch. 1 - Ethical challenges, global company environmental...
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- Overview In his article, Plaskett shows that ERP systems are helpful for companies to establish needed agility. ERP systems are also discussed in length in Chapter 6 of your textbook. Accurate, up-to-date information on business products can help reduce production times and make businesses more effective. Read this article before you begin the assignment: ERP System Enables Gearmaker to Achieve Needed Agility. Instructions Using the same framework used by Plaskett, answer the following: Summarize the factors that made the ERP system successful in Gearmaker. Apply the same ERP analysis process to a company of your choice and describe the potential impact on its operations. Use at least three quality resources in this assignment. Note: Wikipedia and similar websites do not qualify as quality resources. This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the Library site for…arrow_forwardJohn Thomas, vice president of Mallett Company (a producer of a variety of plastic products), has been supervising the implementation of an ABC management system. John wants to improve process efficiency by improving the activities that define the processes. To illustrate the potential of the new system to the president, John has decided to focus on two processes: production and customer service. Within each process, one activity will be selected for improvement: materials usage for production and sustaining engineering for customer service (sustaining engineers are responsible for redesigning products based on customer needs and feedback). Value-added standards are identified for each activity. For materials usage, the value-added standard calls for six pounds per unit of output (the products differ in shape and function, but their weight is uniform). The value-added standard is based on the elimination of all waste due to defective molds. The standard price of materials is 5 per pound. For sustaining engineering, the standard is 58% of current practical activity capacity. This standard is based on the fact that about 42% of the complaints have to do with design features that could have been avoided or anticipated by the company. Current practical capacity (at the end of 20X1) is defined by the following requirements: 6,000 engineering hours for each product group that has been on the market or in development for 5 years or less and 2,400 hours per product group of more than 5 years. Four product groups have less than 5 years experience, and 10 product groups have more. Each of the 24 engineers is paid a salary of 60,000. Each engineer can provide 2,000 hours of service per year. No other significant costs are incurred for the engineering activity. Actual materials usage for 20X1 was 25% above the level called for by the value-added standard; engineering usage was 46,000 hours. A total of 80,000 units of output were produced. John and the operational managers have selected some improvement measures that promise to reduce nonvalue-added activity usage by 40% in 20X2. Selected actual results achieved for 20X2 are as follows: The actual prices paid for materials and engineering hours are identical to the standard or budgeted prices. Required: 1. For 20X1, calculate the nonvalue-added usage and costs for materials usage and sustaining engineering. 2. CONCEPTUAL CONNECTION Using the budgeted improvements, calculate the expected activity usage levels for 20X2. Now, compute the 20X2 usage variances (the difference between the expected and actual values), expressed in both physical and financial measures, for materials and engineering. Comment on the companys ability to achieve its targeted reductions. In particular, discuss what measures the company must take to capture any realized reductions in resource usage.arrow_forwardEthics in Action The controller of Tri Con Global Systems Inc. has developed a new costing system that traces the cost of activities to products. The new system is able to measure post-manufacturing activities, such as selling, promotional, and distribution activities, and allocate these activities to products in a manner that provides a more complete view of the companys product costs. This system produces better strategic information about the relative profitability of product lines. In the course of implementing the new costing system, the controller realized that the companys current-period GAAP net income would increase significantly if the new product cost information were used for inventory valuation on the financial statements. The controller has been under intense pressure to improve the companys net income, and this would be an easy and effective way for her to help meet the companys short-term net income goals. As a result, she has decided to use the new costing system to determine GAAP net income. Why does the companys net income increase when the new costing system is applied? Is the controller acting ethically by using the new costing system for GAAP net income? Explain your answer.arrow_forward
- As manager of department B in MarIeys Manufacturing, based on the costs you identified in the previous exercise for further research, how does this impact the financial performance of your department, and what might be some questions you want to ask or solutions you might propose to Marleys management?arrow_forwardConsider an organization that has empowered its employees, asking them to improve the quality, productivity, and responsiveness of their processes that involve repetitive work. This work could arise in a manufacturing setting, such as assembling cars or producing chemicals, or in a service setting, such as processing invoices or responding to customer orders and requests. Clearly, the workers would benefit from feedback on the quality (defects, yields) and process times of the work they were doing to suggest where they could make improvements. Identify the role, if any, for sharing financial information with these employees to help them in their efforts to improve quality, productivity, and process times. Be specific about the types of financial information that would be helpful and the specific decisions or actions that could be made better by supplementing physical and operational information with financial information.arrow_forwardIn addition to the "Shop," what other initiatives does Barcelona have in place to enhance employee fit? Are there any additional recommendations you have for the firm to better the fit of new personnel with the role and the organization?arrow_forward
- How is the management of a company accountable to its employees? The management must provide products that are safe and free of defects. B The management must ensure that the business is environmentally responsible to its community. C The management must ensure that it earns a net positive return on its investments. D The management must provide a safe workplace.arrow_forwardA company’s attempts to utilize sustainable business practices with regard to its employees, the environment, and society are known as ________. Select one: a. corporate social responsibility b. value chain c. total quality management d. a balanced scorecardarrow_forwardRecommend actions for a manufacturing company on how to maintain or perhaps improve more their operations.arrow_forward
- Ms. Asma is a department head. She is looking into her team structures and ways to re-structure them. She is considering a self-managed team structure. She wants to ensure that self- managed teams in her department are effective. What would you recommend? Select one: O a. Make sure a team's work is sufficiently complex so that it entails a number of different steps or procedures that must be performed and results in some kind of finished product. O b. All of the mentioned. O c. Give teams enough responsibility and autonomy and refrain from telling the team members what to do or solve problems for them. O d. Analyze what training team members may need, and provide it. O e. Realize that her role with self- managed teams calls for guidance, coaching and supporting.arrow_forward1. Employee Involvement Quickie Designs Inc. uses teams in the manufacture of lightweight wheelchairs. Two features of its team approach are team hiring and peer reviews. Under team hiring, the team recruits, interviews, and hires new team members from within the organization. Using peer reviews, the team evaluates each member of the team with regard to quality, knowledge, teamwork, goal performance, attendance, and safety. These reviews provide feedback to the team member for improvement. Using these two team approaches rather than managers to hire and evaluate employees have all the following advantages except: a.With a team approach, the input of many individuals goes into the hiring decision and brings a variety of viewpoints. b.Team-based hiring can produce a higher probability of having an effective team member by having a good fit. c.The peer evaluation may be more effective than the supervisor evaluation, since the team may be more familiar with the team. d.Team-based…arrow_forwardUnderstanding today’s business environmentMatch the following terms to the appropriate statement. Some terms may be used more than once, and some terms may not be used at all. a. A management system that focuses on maintaining lean inventories while producing products as needed by the customer. b. A philosophy designed to integrate all organizational areas in order to provide customers with superior products and services while meeting organizational objectives. c. Integrates all of a company’s functions, departments, and data into a single system. d. Adopted by firms to conduct business on the Internet.arrow_forward
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