Denise Seals - Week Five Excerise

Denise Seals - Week Five Excerise - are possible 4 Suppose...

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Denise Seals Managerial Accounting MBAC5213OL Dr. Lemler April 8, 2009 Week 6 – Exercises 15.6Quality Cost; Distribution Across Categories; Gainsharing LO1, LO2,LO3,LO4 1. Compute the quality costs/sales ratio for each year. Is this type of improvement possible? 2. Calculate the relative distribution of quality costs by category for 2001 (quality costs by category/total quality costs). What do you think of the relative cost distributed as the company approaches a zero-defects state? 3. Calculate the relative distribution of quality costs? Do you think further reductions
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Unformatted text preview: are possible? 4. Suppose that the CEO of Lander received a bonus equal to 10 percent of the quality cost saving each year. Do you think gainsharing is a good or bad idea? What risks are there, if any, to gainsharing? 16-12 Cycle Time and conversions Cost per Unit LO4 1. Compute the theoretical conservation cost per unit. 2. Compute the applied conversion cost per unit (the amount of conversion cost actually to the product). 3. Discuss how this approach to assigning conversion costs can improve delivery time performance....
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