Falcon Enterprises,which Manufactures Lawn Mowers,recently Installed a Just-In-Time Purchasing System
Falcon Enterprises,which manufactures lawn mowers,recently installed a just-in-time purchasing system and an activity-based management program.
Required:
A.Determine whether the following items would be apt to increase or decrease as a result of the just-in-time system:
1.Inventory storage costs.
2.Number of suppliers used.
3.Number of raw material shipments handled.
4.Dollars available for alternative investment opportunities.
5.Quality of raw materials purchased.
B.Identify the following items as value-added activities,non-value-added activities,or both.
1.Attaching the engine to the mower's body.
2.Installing a new air-conditioning system in the executive offices.
3.Replacing a defective wheel with a new wheel.
4.Designing and printing an owner's instruction manual for a new model.
5.Moving completed mowers to the finished-goods warehouse.
6.Attaching the handle to the mower's body.The process took longer than normal because of a worker slowdown caused by disgruntled employees.
Correct Answer:
Verified
Q70: Consider the nine activities that follow.
1. Microsoft:
Q74: St. Helena Cellars produces wine in northern
Q81: Templeton Industries currently assigns overhead to products
Q84: At a recent professional meeting, two controllers
Q88: Consider the following costs that relate to
Q89: Homestead Corporation sells a line of power
Q91: Harvest Corporation recently abandoned its traditional production
Q93: The wholesale division of Navigator Enterprises is
Q94: The controller for Wofford Machining has established
Q95: Hudson,Inc. ,is considering a change from a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents