Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

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Answer 1

Question

Chapter 19, Problem 7AP

a.

To determine

Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

b.

To determine

Indicate the cost spent by Incorporation BW for non-value-added activities.

c.

To determine

Identify two examples that indicate the non-value-added activities.

d.

To determine

Discuss whether the elimination of non-value-added activities, would able Incorporation BW to achieve 13% of cost percent of sales.

e.

To determine

Indicate whether additional cost cutting is required by Incorporation BW to achieve target percentages for books line, indicate the cost required for cost cutting, and indicate the tools required to achieve the cost cutting.

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Omaheke ltd is considering purchasing or investing in a new machine, either machine x or machine y. however, a condition of capital rationing exits in the company (meaning due to avilability of funds they can either invest in machine x or machine y and not both) and hence the need for capital budgeting appraisal. both machines would have an expected life of five years and would be depreciated on a straight line basis. the following information is availble machine x machine y initial cost 450 000 560 000 residual value 50 000 60 000 accounting profits Machine x machine y year 1 60 000 50 000 year 2 70 000 60 000 year 3 70 000 80 000 year 4 40 000 70 000 year 5 30 000 40 000 better limited cost of capital is 10% per annum for which the discount factors are year 1 = 0.909 year 2 = 0.826 year 3 = 0.751 year 4 = 0.683 year 5 = 0.621 required (a) for both machines x and y calculate (i) the accounting rate of return (based on average capital…

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The product unit cost for Product X this year is:

Answer 2

Question

Chapter 19, Problem 7AP

a.

To determine

Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

b.

To determine

Indicate the cost spent by Incorporation BW for non-value-added activities.

c.

To determine

Identify two examples that indicate the non-value-added activities.

d.

To determine

Discuss whether the elimination of non-value-added activities, would able Incorporation BW to achieve 13% of cost percent of sales.

e.

To determine

Indicate whether additional cost cutting is required by Incorporation BW to achieve target percentages for books line, indicate the cost required for cost cutting, and indicate the tools required to achieve the cost cutting.

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Answer 3

Question

Chapter 19, Problem 7AP

a.

To determine

Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

b.

To determine

Indicate the cost spent by Incorporation BW for non-value-added activities.

c.

To determine

Identify two examples that indicate the non-value-added activities.

d.

To determine

Discuss whether the elimination of non-value-added activities, would able Incorporation BW to achieve 13% of cost percent of sales.

e.

To determine

Indicate whether additional cost cutting is required by Incorporation BW to achieve target percentages for books line, indicate the cost required for cost cutting, and indicate the tools required to achieve the cost cutting.

Expert Solution & Answer

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Answer 4

Question

Chapter 19, Problem 7AP

a.

To determine

Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

b.

To determine

Indicate the cost spent by Incorporation BW for non-value-added activities.

c.

To determine

Identify two examples that indicate the non-value-added activities.

d.

To determine

Discuss whether the elimination of non-value-added activities, would able Incorporation BW to achieve 13% of cost percent of sales.

e.

To determine

Indicate whether additional cost cutting is required by Incorporation BW to achieve target percentages for books line, indicate the cost required for cost cutting, and indicate the tools required to achieve the cost cutting.

Expert Solution & Answer

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Answer 5

Chapter 19, Problem 7AP

a.

To determine

Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

b.

To determine

Indicate the cost spent by Incorporation BW for non-value-added activities.

c.

To determine

Identify two examples that indicate the non-value-added activities.

d.

To determine

Discuss whether the elimination of non-value-added activities, would able Incorporation BW to achieve 13% of cost percent of sales.

e.

To determine

Indicate whether additional cost cutting is required by Incorporation BW to achieve target percentages for books line, indicate the cost required for cost cutting, and indicate the tools required to achieve the cost cutting.

Answer 6

Chapter 19, Problem 7AP

a.

To determine

Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

Answer 7

Chapter 19, Problem 7AP

a.

To determine

Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

Answer 8

b.

To determine

Indicate the cost spent by Incorporation BW for non-value-added activities.

Answer 9

b.

To determine

Indicate the cost spent by Incorporation BW for non-value-added activities.

Answer 10

c.

To determine

Identify two examples that indicate the non-value-added activities.

Answer 11

c.

To determine

Identify two examples that indicate the non-value-added activities.

Answer 12

d.

To determine

Discuss whether the elimination of non-value-added activities, would able Incorporation BW to achieve 13% of cost percent of sales.

Answer 13

d.

To determine

Discuss whether the elimination of non-value-added activities, would able Incorporation BW to achieve 13% of cost percent of sales.

Answer 14

e.

To determine

Indicate whether additional cost cutting is required by Incorporation BW to achieve target percentages for books line, indicate the cost required for cost cutting, and indicate the tools required to achieve the cost cutting.

Answer 15

e.

To determine

Indicate whether additional cost cutting is required by Incorporation BW to achieve target percentages for books line, indicate the cost required for cost cutting, and indicate the tools required to achieve the cost cutting.

Answer 16

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Answer 17

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Answer 18

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Answer 19

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...

Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

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Define activity-based management, indicate the circumstances under which ABM is useful, and define non-value-added activity.

Indicate the cost spent by Incorporation BW for non-value-added activities.

Identify two examples that indicate the non-value-added activities.

Discuss whether the elimination of non-value-added activities, would able Incorporation BW to achieve 13% of cost percent of sales.

Indicate whether additional cost cutting is required by Incorporation BW to achieve target percentages for books line, indicate the cost required for cost cutting, and indicate the tools required to achieve the cost cutting.

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Chapter 19 Solutions