1.
Explain the activity based management and describe the relationship with the constant improvement.
2.
Classify the non-value added cost and calculate the cost savings per unit that will be realized, if non-value added is eliminated. Comment regarding the assessment of preliminary cost reduction done by person C and explain the steps to the company to reduce or eliminate the non-value added activities.
3.
Calculate the target cost required maintaining the current market share and target cost required to expand the sales by 50 percent, if earning a profit of $6 per unit and calculate the cost reduction to achieve the target.
4.
Determine the activity management under given situation.
5.
Calculate the income for the company based on current sales price and using the selling price of $21 and $18. Choose any one selling price.
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Chapter 12 Solutions
EBK CORNERSTONES OF COST MANAGEMENT
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