* Better utilization of available resources and capability by freeing up internal resources that could be put in to effective use for other purposes * Outsourcing also enables companies to realize the benefits of re-engineering. 2. Bridgeton has already outsourced muffler-exhaust systems and oil pans. c. How much overhead cost would have been saved by outsourcing of muffler-exhaust systems and oil pans if i. Overhead costs were entirely fixed costs (regardless of the
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Bridgeton Industries: Automotive Component and Fabrication Plant 3. Calculate the expected gross margins as a percentage of selling price on each product based on the 1998 and 1990 model year budgets assuming selling price and material and labor cost do not change from standard. *See Exhibit 1 for calculations To calculate the expected gross margins as a percentage of selling price‚ first we will need to calculate the total overhead (burden) for years 1988 and 1990. For year 1988‚ the total
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Bridgeton Industries: Automotive Component & Fabrication Plant DESCRIPTION. The Automotive Component & Fabrication Plant (ACF) was a major supplier of components for the domestic automotive industry‚ the original plant site for Bridgeton Industries. ACF was a long-term business since the early 1900s. The market of ACT’s production was growing and dominated by U.S. automobile manufacturers‚ ACF faced less competition pressure because most competitions from local suppliers and other Bridgeton plants
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ACCOUNTING AMIS 4310 CASE QUESTIONS Seligram‚ Inc.: Electronic Testing Operations 1. What caused the existing system at ETO to fail? 2. Calculate the reported cost of the five components listed in Exhibit 6 using: a. The existing system. b. The system proposed by the accounting manager. c. The system proposed by the consultant. 3. Which system is preferable? Why? 4. Would you recommend any changes to the system you prefer? Why? 5. Would you treat the new machine
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administrative questions to Asad Alfia Karimova E-mail: alfia.karimova@utoronto.ca Patrick Rizzetto E-mail: patrick.rizzetto@utoronto.ca Ajaz Hussain. Department of Economics. University of Toronto (St. George) 4 Course Materials & Tools ECO 204 (2nd Draft) Book Chapters Posted on 204 website on a continuous basis (Link to 1st Draft) Harvard Business School (HBS) Cases Purchasable here (register as a student) Cases: Prestige Telephone Company‚ Nutrasweet‚ Aluminum Industry (data set‚ pw: quasifixed)
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The Bridgeton case introduced a relatively simple costing system: DM‚ DL‚ and one pool of indirect‚ support‚ or overhead costs. The one and only "cost pool" containing all overhead (OH) costs was allocated on the basis of DL$. In this case‚ the direct costs seem to be largely variable (i.e.‚ they vary proportionally with production volume)‚ whereas some of the indirect costs are relatively variable and others are largely fixed. Case in point: Not all INDIRECT costs are necessarily FIXED. To figure
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main competitive forces behind that competition and that is what I would like discuss in the next few paragraphs. Before I go specifically into the world of Sony electronics‚ I am first going to define in general the 5 competitive forces in industry. At the center of it all are the Industry Competitors. Next‚ there is the Threat of New Entry‚ which puts pressure on prices‚ cost‚ and the rate of investment necessary to compete. There is also Power of Suppliers which captures more value by charging higher
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Section 5 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. What is credit? Credit is a commitment to pay for something in the future‚ instead of paying for it right away. (0.5 points) 2. What is a credit score? credit score or credit rating is a number that tells lenders how likely you are to make payments on time. (0.5 points) 3. What is installment credit? Installment credit is when you borrow a specific amount
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1. Porters 5 forces Analysis: 1.1 Buyer power: The buyers for mining industry usually have medium to high power. There are two elements that could affect the buyer’s power. One is buyer’s level of negotiation; the other is buyer’s price sensitivity. In our case‚ the two companies are producing coal and uranium. These two products are mainly used for producing electricity. Buyers for these natural resources must have large quantity of demand‚ and also they usually have government behind
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Applying Porter’s Five Forces in the Restaurant industry in Ireland…….pg4 Pest analyze in the restaurant industry…………………………………….pg5 Recommendations……………………………………………………………pg6 Conclusion………………………………………………………………….....pg7 Reference list………………………………………………………………….pg8 Introduction In this assignment we are going to analyses the restaurant industry in Ireland and we are going to apply the Porter’s Five Forces and Pest on this industry for to be able to write a report to give some
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