POA11e22 - CHAPTER 22Solutions VALUE-BASED SYSTEMS: ABM AND...

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Ch22 SE1 to SE4 CHAPTER 22—Solutions VALUE-BASED SYSTEMS: ABM AND LEAN Chapter 22, SE 1. For customers to return, Thom Lutz needs to focus on factors that emphasize customer service and satisfaction. In the past, Lutz may have emphasized the selling activity of the business while giving less attention to the buying and de- livery activities. To sell merchandise, the store must have current fashions dis- played on time and in good condition. Lutz should put equal effort into the buy- ing, delivery, and selling activities. He must work with suppliers and order sooner. He also needs to find a better delivery service for the merchandise. Chapter 22, SE 2. Components of the value chain include product marketing, machine drilling, product design, and product packing. Materials storage, cost accounting, moving work in process, and inventory control are non-value-adding activities. Chapter 22, SE 3. Ribs 'n Slaw's supply chain is made up of all of the vendors that provide the food products DuBois needs, such as suppliers of ribs, salad ingredients, potatoes, vegetables, and condiments. The furniture and equipment leasing company, Food Servers, Inc., and customers are also part of the restaurant's supply chain. Chapter 22, SE 4. 1. V 2. NV 3. V 4. NV 5. V 6. NV
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Ch22 SE5 to SE10 Chapter 22, SE 5. 1. Unit-level activity 2. Batch-level activity 3. Product-level activity Chapter 22, SE 6. 1. Facility-level activity 2. Product-level activity 3. Unit-level activity 4. Batch-level activity Chapter 22, SE 7. In pull-through production, products are made only when a customer order needs to be filled. No customer order means no production. Under the traditional push- through method, products are made and stored in inventory in anticipation of customer orders. Producing as needed and in smaller lot sizes means that orders can be filled from production instead of from large inventories. This reduces the size of inventories. Chapter 22, SE 8. 1. NVA 2. NVA 3. D 4. D 5. NVA 6. D Chapter 22, SE 9. A total of $380,000 ($120,000 + $260,000) was charged to the Cost of Goods Sold account during August. The ending balance of Cost of Goods Sold was $377,800 Chapter 22, SE 10. Hwang Corp. should adopt the backflush costing approach because the company produces large quantities of like products in continuous-flow production. This setting lends itself to the advantages and time-saving features of backflush cost- ing. ABM/ABC is more appropriate for production environments that deal with many different kinds of products. ($380,000 $900 $1,300).
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Ch22 E1 to E4 Chapter 22, E 1. The report on the left is the financial report because it is organized by costs. The report on the right is the ABM report because it is organized by activities. Even though the total costs are the same, the reports differ because ABM focuses on reducing or eliminating non-value-adding activities rather than minimizing costs. Chapter 22, E 2.
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This note was uploaded on 11/02/2011 for the course ACCT 210 taught by Professor Mcgonigal during the Spring '11 term at E. Washington.

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POA11e22 - CHAPTER 22Solutions VALUE-BASED SYSTEMS: ABM AND...

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