Beruflich Dokumente
Kultur Dokumente
EMBA 7010
Financial and Managerial Accounting
University of Fredericton
P6.2
a. The employees of Hadden respect their employer and always try to make a high quality
product. It is a not a control system, as the employees always try to make a high quality
product through having respect for their employer. It does not look like it is a policy, the
statement is not definitive enough
b. Benjamin Quarin always checks the works of his employees before he allows them to
send it off to shipping. Benjamin is making use of a control system to detect errors in his
employees work before it leaves his unit
c. The quality control manager for Gulam Clothing Corporation checks every 5 out of 100
shirts to ensure that they meet the companys pre-set standards. Any faulty shirts are sent
back to manufacturing to be redone. The quality control manager is making use of the
company pre-set standard to verify if the clothes meet the set standards, so he is making
use of a control system
d. Adam Grant must make 100 toasters each day to receive his incentive compensation at
Kitchen Inc. There is an objective or target for Adam to meet, which is the 100 toasters he
has to make per day for him to be compensated with an incentive, so that is a form of a
control system
e. Celia, the owner of Celias Fine Meats, asks her staff to pack only food product that they
will take home to their own family. This is a control system, because there is a rule here,
The owner says only take food product that staff will take home to their family
anything outside of that is not allowed. So there is control here.
f. The supervisor of Holiday Trailers Inc. signs the sales order of all RV sold off the lot.
Because the supervisor signs the sales order of all RV from the lot he has in place a sort
of check, which is a control system
P6.6 (Balanced Scorecard) Goodall Corporation makes a wireless computer keyboard called the
Blackbird. The following information was compiled for 2010 and 2011.
2010
28,000
14,000
$7
35,000
18%
$495,000
$152,000
608
$250
2011
29,500
15,100
$10
35,000
25%
$585,000
$161,650
610
$265
Due to increases in direct materials costs, Goodall is concerned that the profitability of its Blackbird line is decreasing. The company would like to reduce manufacturing costs and also reduce
the amount of materials that are spoiled in a given year. Goodall also wants to grow its customer
base more rapidly, as the industry market size for wireless keyboards increased over 25% from
2010 to 2011, but its results did not reflect this growth. Identify three measures that you could
use to help the company achieve its plans in each of the BSC perspectives.
Perspective
Financial
Measures
1. Reduce direct material cost by making use of just-intime (JIT) production and inventory control system, they
purchase materials and produce units only as needed to
meet actual customer demand. By doing this they reduce
materials inventory and prevent them from spoiling
2. In order to increase sales Goodall has to increase the
customer base. By conducting a customer survey, and
Customer
Process
25,000
68,000
93,000
45,000
48,000
Labour cost
98,000
73,500
DIRECT COST
219,500
52,000
15,000
37,000
256,500
P7.4
32,000
288,500
58,000
256,500
230,500
100,000
250,000
350,000
150,000
200,000
450,000
650,000
Factory
Overhead
Factory Rentals
Depreciation of plant and
machinery
75,000
25,000
100,000
50,000
250,000
900,000
300,000
1,200,000
400,000
800,000
COST OF GOODS
SOLD STATEMENT
Opening stock of finished goods
Cost of goods
manufactured
150,000
800,000
950,000
250,000
700,000
900,000
700,000
Gross profit
Selling and administrative
expenses
200,000
Profit
125,000
75000
VALUATION OF
INVENTORY
INVENTORY
Raw materials
Work in
progress
150,000
Finished goods
250,000
400,000
800,000
P 7.17
Fared Construction
Calculations of percentage of
completion
12,900,000
47,500,000
27.157894
74
X 100%
27.15789474
P8.1
X
5200000
0
1,412,210,
526
Gobblers Restaurant
Cost
Variable
Fixed
Mixed
Food
Napkins
Tablecloths
Server wages
Kitchen manager
salary
Electricity
Rent
Depreciation on
kitchen
equipment
Telephone
Oil for deep
fryer
Internet service
WESTERN TOTAL
Sales
550,000
500,000
1,050,00
0
Variable cost
275,000
200,000
475,000
Contribution
275,000
300,000
575,000
Step
80,000
150,000
230,000
170,000
135,000
305,000
Operating profit
25,000
15,000
40,000
500,000
500,000
Variable cost
200,000
200,000
Contribution
300,000
300,000
Divisional cost
150,000
150,000
170,000
135,000
305,000
Operating profit
(170,000)
15,000
(155,00
0)
The division should not be closed down because it would result into
a loss of $155,000 in operating profit
Sales revenue
increase in sales
Variable cost
Divisional fixed cost
500000
200000
700000
200000
150000
305,000
Operating profit
45,000
The fixed cost of the division can still be covered by the contribution made by
division; therefore, the division should be closed.