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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 39
TREND REPORT, NON-VALUE-ADDED COSTS
Refer to Exercise 12-14. Suppose that for 2011, Gorman Company has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Gorman implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 2011, the following information is provided:
Required:
1. Prepare a report that compares the non-value-added costs for 2011 with those of 2010.
2. What is the role of activity reduction for non-value-added activities? For value-added activities?
3. Comment on the value of a trend report.
Refer to Exercise 12-14. Suppose that for 2011, Gorman Company has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Gorman implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 2011, the following information is provided:
Required:
1. Prepare a report that compares the non-value-added costs for 2011 with those of 2010.
2. What is the role of activity reduction for non-value-added activities? For value-added activities?
3. Comment on the value of a trend report.
Explanation
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1)
Report that compares the non value a...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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