Answer:
Suggests the changes to the firms' activities to reduce the cost:
Inspecting products, warranty work and reworking products:
They are concerned with quality-specific operations. This provides a clue of strategic modification in the firm related operation, ensuring quality. The concerned executional cost driver will be quality approach. The cost related to all these quality operations can be declined by modifying the driver to total quality management from acceptable quality level.
Moving materials :
The driver is most likely a distant move. This reveals that the executional activity of providing plant layout should be given due consideration the plant layout effectively is its driver. Execution of a cellular approach will be worth while in declining costs pertaining to materials handling.
Setting up equipment :
Setup time is the driver. Organizing processes, opting and undertaking process technologies, and giving plant layout are all enterprise specific activities that can influence the setup process.
Purchasing parts:
Number of variant parts drives this activity. It is a driver which is also concerned with complexion, a structure based activity. This reveals that lowering complexion will decline the number of parts required along with the purchasing activity costs.
Storing goods and materials:
Minimizing inventory days declines the cost concerned with this activity. This provides a likeliness of monitoring the structural activity.
Expediting orders:
Reduction in late orders will lower the cost associated with this activity. This reveals a requirement to minimize manufacturing time, most likely by monitoring the organizational activities like plant layout and capacity provided. Enhancing plant layout will positively decline cycle time.
Answer:
1). Journal entries for traditional and backflush costing:
1. Purchase of raw materials:
2. Materials issued to production:
No Entry
3. Direct labor cost incurred:
Combined with overhead in next entry
4. Overhead cost incurred:
5. Application of overhead:
No entry
6. Completion of goods:
7. Goods are sold:
8. Variance is recognized:
2). The entries for Transactions 6 and 7 in requirement 1 are replaced with the following entry:
All other entries follow those in requirement 1.3). a. There is no entry for Transaction 1. Transaction 6 is replaced the following entry:
b. There is no entry for Transaction 1. Transaction 6 and 7 are replaced with the following entry:
Answer:
1.Identify the product purchased by MR.J:
J has purchased a Brand B personal computer with 3.5 inch hard disk, CD ROM drive with basic software support package.
2.Comment the strategy of the 2 brands:
Brand A is pursuing a cost leadership strategy as they offer personal computers with lower operating and maintenance costs as compared to Brand B and other competitors, thereby attracting customers by cost differentiation.
As far as Brand B is concerned they are using differentiation strategy as their Brand comes with higher operating and maintenance costs as compared to Brand A and other competitors but their service quality is good enough to satisfy customers to purchase the product even if its operating and maintenance costs are higher than others.
3.List out the possible sources:
J is satisfied because he is sure that he will get better warranty cover along with satisfactory after sales service and operating and maintenance support for which Brand B is known for.
I will suggest Brand A to improve service quality and they should increase operating and maintenance costs if required. Customers are fond of quality not of lesser price.