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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 20
Trend Report, Non-Value-Added Costs
Refer to Exercise 12.14. Suppose that for 2014, Sanford, Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford 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 2014, the information shown on page 668 is provided.
Required:
1. Prepare a report that compares the non-value-added costs for 2014 with those of 2013.
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 2014, Sanford, Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford 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 2014, the information shown on page 668 is provided.
Required:
1. Prepare a report that compares the non-value-added costs for 2014 with those of 2013.
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)Comparison of Non-value added cost for...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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