9-580-104 REV: AUGUST 16‚ 1985 BENSON P. SHAPIRO JEFFREY J. SHERMAN Cumberland Metal Industries: Engineered Products Division‚ 1980 Robert Minicucci‚1 vice president of the Engineered Products Division of Cumberland Metal Industries (CMI)‚ and Thomas Simpson‚ group manager of the Mechanical Products Group‚ had spent the entire Wednesday (January 2‚ 1980) reviewing a new product CMI was about to introduce. (See Exhibit 1 for organization charts.) The room was silent‚ and as he watched
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Santos Timber Company I. POINT OF VIEW • The point of view of Carlos Vinces‚ Alfredo Santos’ partner‚ is assumed. The group believes that the case is better handled by Vinces since he was the one who hired Felix Cruz‚ character involved in their disagreement‚ in the company. II. ANALYSIS OF THE CASE SITUATION A. Industry Analysis • The firm cut logs and hauled them twenty kilometers to the coast where they were sold to an assembler – exporter. • There
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based costing requires four steps to build its cost point. Traditional costing uses one rate where first‚ activity based costing must identify each activity and estimate its total and indirect cost. Second for activity based costing is that the cost driver for each activity must be estimated along with the total quantity of each driver’s allocation base. Third the cost allocation for each activity must be computed. Fourth costs to cost object are allocated. Activity-based costing focuses on activities
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NOVA SCHOOL OF BUSINESS AND ECONOMICS MANAGEMENT ACCOUNTING (1202) HANDBOOK OF EXERCISES 2014 / 2015 Page 1 / 69 NOVA SCHOOL OF BUSINESS AND ECONOMICS MANAGEMENT ACCOUNTING (1202) HANDBOOK OF EXERCISES 2014-20151 I - Introduction to Management Accounting Exercise 1 Exercise 2 Exercise 3 Exercise 4 Exercise 5 Exercise 6 - The MA Company - The Alimentar Company - The Alfa Company - The Metalex Company - The Reparadora Company - The DoceAroma Company II - Inventory Valuation and Profit Measurement
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The term ‘globalization’ in the most basic level can mean the globalization of international trade‚ however it is also expansion of foreign direct investment (FDI)‚ multinational corporations‚ integration of the world capital markets and much more. Thus‚ globalization can be defined as the interdependence of national economies through trade‚ finance‚ production and a growing web of treaties and institutions. The evidence of globalization is clear. Nowadays‚ over $4 trillion in foreign exchange transactions
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a competitive environment. One of the key factors in this success was a change in the costing system. Activity based elements were introduced which identified the number of customer orders and number of types of specialised components as key cost drivers. SEMW’s transformation is a classic case study in process costing.2 2. Strategic reorientation 2.1 COMPetition: the Need for Change3 SEMW commenced in 1937 in Bad Neustadt in the western German state of Bavaria. Most of Siemens’ electric motor
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also cut the truck driver’s lunch fund. This was a fund set aside to make sure there was always a refrigerator full of food in the trucker’s lounge. They had decided that this was not a necessity in the company; it was just a perk to keep their drivers happy. Another budget cut they had to make was to cancel company barbeques and picnics. Most businesses like to treat their employees to a picnic of some sort usually to keep the moral up and make sure hard work doesn’t go unnoticed. The next
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CASES FROM MANAGEMENT ACCOUNTING PRACTICES Table of Contents Case 1: Case 2: Bal Seal Engineering Robin Cooper Bill’s Custom Planters William Stammerjohan Deborah Seifert Dublin Shirt Company Peter Clarke in assoc. with in assoc. with Paul Juras Wayne Bremser ECN.W William Lawler Endesa Gary M. Cunningham Scott Ericksen Francisco J. Lopez Lubian Antonio Pareja Kincaid Manufacturing Jon Yarusso Ram Ramanan Osram.NA John Shank Lawrence Carr William Lawler Pleasant Run Children’s Home Brooke E. Smith
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ODFL’s success is its dedicated fleet of freight drivers. ODFL drivers pride themselves on being innovative‚ reliable‚ courteous‚ responsive‚ professional and ethical‚ for they are they are the heart and soul of the freight industry. “Trucking accounts for how we move 80 percent of cargo in our nation” (Bynum‚ 2012 para 1). ODFL however‚ is facing a potentially disastrous problem: as older truck drivers retire there is a growing shortage of new drivers willing to take their place. “The rigors of the
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allocation for indirect costs Cost Pool – Set of costs that are added together before being allocated to cost objects on some common basis Cost Driver/ Allocation base Cost Object Cost Driver Rate = Total Costs in Pool/ Total Quantity of Driver Where total quantity of driver = practical capacity of driver Cost of excess capacity = Cost Driver Rate * Excess capacity Predetermined overhead rate - cost per unit of the allocation base used to charge overhead to products. Predetermined
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