week 3 4-2

week 3 4-2 - will reflect in the actual cost. 4. Diagram...

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1. Briefly summarize and contrast the competitive environment in the pre-1080 era with that of the early nineties. 2. What are the problems that plant management has to resolve? Check to see if anything else could be added to this answer. Plant management has to work on creating more effective estimates. Plant management should find ways for the company to reinvest in the repair and replacements of machinery. Plant management should implement a new cost system. 3. What potential problems may occur between the as-sold cost estimates and the actual contract cost? In some instances, the actual costs for work performed may be higher than the as-sold estimate, because if the studs are not welded properly, they have to be had welded by an employee. Another problem that may occur between the two costs is that if there is some type of defect in the product, it will cost the company a substantial amount to repair the defect in the product. That fee would be charged to the account and it
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Unformatted text preview: will reflect in the actual cost. 4. Diagram the structure of the existing cost system and explain how cost information is used for decision-making cost control, and performance evaluation purposes. 5. Is the labor-based cost system appropriate for this facility? Should activity-based costing be implemented to analyze product costs? The labor-based cost system is not appropriate for this facility. It would be more appropriate if activity-based costing were implemented, because the activity-based cost system can be used to assign costs to products and the departments where the work is done. The activity-based estimate will give you a more accurate estimate, because it actually breaks down the costs. 6. Prepare a set of recommendations for changes in the cost system. Describe a general framework for costing products in an automated facility....
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week 3 4-2 - will reflect in the actual cost. 4. Diagram...

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