Indicate the value-added production activities.

Question

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Answer 1

Question

Chapter 19, Problem 1AP

a.

To determine

Indicate the value-added production activities.

b.

To determine

Indicate the non-value-added production activities.

c.

To determine

Compute the cycle time for Corporation C.

d.

To determine

Compute the manufacturing efficiency ratio for Corporation C.

e.

To determine

Indicate the activities that could be eliminated, if Corporation C implements just-in-time (JIT) inventory system.

f.

To determine

Indicate the ethical implications, if few non-value-added activities are eliminated.

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Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's expenses, Gross margin, and Net income?

Recently, Abercrombie & Fitch has been implementing a turnaround strategy since its sales had been falling for the past few years (11% decrease in 2014, 8% in 2015, and just 3% in 2016.) One part of Abercrombie's new strategy has been to abandon its logo-adorned merchandise, replacing it with a subtler look. Abercrombie wrote down $20.6 million of inventory, including logo-adorned merchandise, during the year ending January 30, 2016. Some of this inventory dated back to late 2013. The write-down was net of the amount it would be able to recover selling the inventory at a discount. The write-down is significant; Abercrombie's reported net income after this write-down was $35.6 million. Interestingly, Abercrombie excluded the inventory write-down from its non-GAAP income measures presented to investors; GAAP earnings were also included in the same report. Question: What impact would the write-down of inventory have had on Abercrombie's assets, Liabilities, and Equity?

Answer 2

Question

Chapter 19, Problem 1AP

a.

To determine

Indicate the value-added production activities.

b.

To determine

Indicate the non-value-added production activities.

c.

To determine

Compute the cycle time for Corporation C.

d.

To determine

Compute the manufacturing efficiency ratio for Corporation C.

e.

To determine

Indicate the activities that could be eliminated, if Corporation C implements just-in-time (JIT) inventory system.

f.

To determine

Indicate the ethical implications, if few non-value-added activities are eliminated.

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Answer 3

Question

Chapter 19, Problem 1AP

a.

To determine

Indicate the value-added production activities.

b.

To determine

Indicate the non-value-added production activities.

c.

To determine

Compute the cycle time for Corporation C.

d.

To determine

Compute the manufacturing efficiency ratio for Corporation C.

e.

To determine

Indicate the activities that could be eliminated, if Corporation C implements just-in-time (JIT) inventory system.

f.

To determine

Indicate the ethical implications, if few non-value-added activities are eliminated.

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Answer 4

Question

Chapter 19, Problem 1AP

a.

To determine

Indicate the value-added production activities.

b.

To determine

Indicate the non-value-added production activities.

c.

To determine

Compute the cycle time for Corporation C.

d.

To determine

Compute the manufacturing efficiency ratio for Corporation C.

e.

To determine

Indicate the activities that could be eliminated, if Corporation C implements just-in-time (JIT) inventory system.

f.

To determine

Indicate the ethical implications, if few non-value-added activities are eliminated.

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Answer 5

Chapter 19, Problem 1AP

a.

To determine

Indicate the value-added production activities.

b.

To determine

Indicate the non-value-added production activities.

c.

To determine

Compute the cycle time for Corporation C.

d.

To determine

Compute the manufacturing efficiency ratio for Corporation C.

e.

To determine

Indicate the activities that could be eliminated, if Corporation C implements just-in-time (JIT) inventory system.

f.

To determine

Indicate the ethical implications, if few non-value-added activities are eliminated.

Answer 6

Chapter 19, Problem 1AP

a.

To determine

Indicate the value-added production activities.

Answer 7

Chapter 19, Problem 1AP

a.

To determine

Indicate the value-added production activities.

Answer 8

b.

To determine

Indicate the non-value-added production activities.

Answer 9

b.

To determine

Indicate the non-value-added production activities.

Answer 10

c.

To determine

Compute the cycle time for Corporation C.

Answer 11

c.

To determine

Compute the cycle time for Corporation C.

Answer 12

d.

To determine

Compute the manufacturing efficiency ratio for Corporation C.

Answer 13

d.

To determine

Compute the manufacturing efficiency ratio for Corporation C.

Answer 14

e.

To determine

Indicate the activities that could be eliminated, if Corporation C implements just-in-time (JIT) inventory system.

Answer 15

e.

To determine

Indicate the activities that could be eliminated, if Corporation C implements just-in-time (JIT) inventory system.

Answer 16

f.

To determine

Indicate the ethical implications, if few non-value-added activities are eliminated.

Answer 17

f.

To determine

Indicate the ethical implications, if few non-value-added activities are eliminated.

Answer 18

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Answer 19

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Answer 20

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Answer 21

Ch. 19 - Prob. 1STQ Ch. 19 - Prob. 2STQ Ch. 19 - 3. JUT inventory systems strive to: a. Cultivate...Ch. 19 - 4. Which of the following would not be considered...Ch. 19 - Prob. 5STQ Ch. 19 - 1. What are three important criteria for...Ch. 19 - 2. Suppose you are interested in opening up a new...Ch. 19 - 3. What activities would make up the marketing and...Ch. 19 - 4. Distinguish between value-added and...Ch. 19 - 5. Assume you are the manager of the finished...

Indicate the value-added production activities.

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Indicate the value-added production activities.

Indicate the non-value-added production activities.

Compute the cycle time for Corporation C.

Compute the manufacturing efficiency ratio for Corporation C.

Indicate the activities that could be eliminated, if Corporation C implements just-in-time (JIT) inventory system.

Indicate the ethical implications, if few non-value-added activities are eliminated.

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Chapter 19 Solutions