Resources used versus resources supplied.Selected information about resources for Morton Industries,which produces various products,is as follows:

Required:
a.Prepare an activity-based management income statement .
b.Write a short report stating why managers should know the difference between resources used and resources supplied.Give examples of how managers could use the information about resources used and resources supplied.
c.Management wants to keep the cost of unused capacity to less than 20 percent of total costs.How well is the company doing?
(Morton Industries;Resources used versus resources supplied. )

Question

Resources used versus resources supplied.Selected information about resources for Morton Industries,which produces various products,is as follows:
  
Required:
a.Prepare an activity-based management income statement .
b.Write a short report stating why managers should know the difference between resources used and resources supplied.Give examples of how managers could use the information about resources used and resources supplied.
c.Management wants to keep the cost of unused capacity to less than 20 percent of total costs.How well is the company doing?
(Morton Industries;Resources used versus resources supplied. )

Quizplus · Accepted Answer

The Answer of Resources used versus resources supplied.Selected information about resources for Morton Industries,which produces various products,is as follows:
  
Required:
a.Prepare an activity-based management income statement .
b.Write a short report stating why managers should know the difference between resources used and resources supplied.Give examples of how managers could use the information about resources used and resources supplied.
c.Management wants to keep the cost of unused capacity to less than 20 percent of total costs.How well is the company doing?
(Morton Industries;Resources used versus resources supplied. )

Resources Used Versus Resources Supplied