Traditional versus Activity-Based Cost Management Systems Jazon Manufacturing produces two different models of cameras. One model has an automatic focus, whereas the other requires the user to determine the focus. The two products are produced in batches. Each time a batch is produced, the equipment must be con ?gured (set up) for the speci?cations of the camera model being produced. The manual-focus camera requires moreparts than the automatic-focus model. The manual-focus model is also more labor intensive, requiring much more assembly time but less machine time. Although the manual model is more labor intensive, the machine con ?guration required for this product is more complex, causing the manual model to consume more of the setup activity resources than the automatic camera. Many, but not all, of the parts for the two cameras are purchased from external suppliers. Because it has more parts, the manual model makes more demands on the purchasing and receiving activities than does the automatic camera. Jazon currently assigns only manufacturing costs to the two products. Overhead costs are collected in one plant wide pool and are assigned to the two products in proportion to the direct labor hours used by each product. All other costs are viewed as period costs. Jazon budgets costs for all departments within the plant — both support departments like maintenance and purchasing and production departments like machining and assembly. Depart-mental managers are evaluated and rewarded on their ability to control costs. Individual managerial performance is assessed by comparing actual costs with budgeted costs. Required: 1. Is Jazon using a traditional or an activity-based cost management system? Explain.2. Assume that you want to design a more accurate cost accounting system. What changes would you need to make? Be speci ? c. Explain why the changes you make will improve the accuracy of cost assignments.3. What changes would need to be made to implement an activity-based operational control system? Explain why you believe the changes will offer improved control.
Traditional versus Activity-Based Cost Management Systems Jazon Manufacturing produces two different
- In Sir Launfal, the hero undertakes a journey and undergoes tests?both common features of chivalric romance. Analyze in detail the role of one of the characters that Sir Launfal encounters (the Mayor, the Mayor?s daughter, Dame Tryamour) in relation to his journey and its goal. Remember that the romance hero?s journey is an inner voyage of self-discovery as well as a physical journey.
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