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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 16
PROFIT-LINKED PRODUCTIVITY MEASUREMENT
Refer to Cornerstone Exercise 15-3. Shawnee Company provides the following additional information so that total productivity can be valued:
Required:
1. Calculate the cost of inputs in 2011, assuming no productivity change from 2010 to 2011.
2. Calculate the actual cost of inputs for 2011. What is the net value of the productivity changes? How much profit change is attributable to each input's productivity change?
3. What if a manager wants to know how much of the total profit change from 2010 to 2011 is attributable to price recovery? Calculate the price-recovery component, and comment on its meaning.
Refer to Cornerstone Exercise 15-3. Shawnee Company provides the following additional information so that total productivity can be valued:
Required:
1. Calculate the cost of inputs in 2011, assuming no productivity change from 2010 to 2011.
2. Calculate the actual cost of inputs for 2011. What is the net value of the productivity changes? How much profit change is attributable to each input's productivity change?
3. What if a manager wants to know how much of the total profit change from 2010 to 2011 is attributable to price recovery? Calculate the price-recovery component, and comment on its meaning.
Explanation
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1. Calculation of the cost of inputs in ...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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