Chapter 5
What is a high value activity and what is a low value activity?
high value- increases the value of the products
low value- can be eliminated w/out affecting the form/fit/function of product/service
FIFO DM EU= 10,000
FIFO CC EU= 5,000
current costs are $5,000 DM and $7,000 CC. Beg WIP costs are $2,000 DM and $4,000 CC. What is the FIFO cost per EU?
DM= .50
CC= .71
What are the 3 methods of allocating service department costs?
direct, step, reciprocal
what are the two types of cost estimation methods?
high-low method and linear regression
When was the first iphone released
2007
What are two types of sample questions you would find on an activity analysis?
What work/activities do you do?
How much time do you spend doing them?
What resources do you need for them?
What value does the activity have?
What does the production report summarize?
units in process, cost incurred, cost per unit for each cost element, cost assigned to units completed and to unitsin ending WIP
What are joint products?
products that start out as the same raw material
Why is cost estimation important (3 reasons)
important for planning/decision making, used in target costing, guide management in tech to implement, crucial role in performance measurement
Black Panther is set in which fictional country?
Wakanda
unit level, batch level, product level, facility level
Units completed = 10,000U
End WIP = 5,000U which are 100% complete for DM and 50% complete for CC
calculate WA EU
DM= 15,000
CC= 12,500
What is the split off point?
the point where we can identify different products
What are the 3 main issues in cost estimation?
trend & seasonality, outliers, data shift
What is a group of crows called
a murder
What are 4 benefits of implementing ABC?
Better costing, better profitability measures, better decision making, improved cost planning, better control of unused capacity
List 3 times we would use Weighted Average?
inventory intermingled, indentical or not sophiscated enough system for FIFO
What are the three methods to allocating JPC?
physical measures, sales value at split off and NRV
How do you measure reliability in a regression analysis?
R-square, t-value, p-value
Who has appeared on the most Sports Illustrated covers?
What is operational ABM and what is strategice ABM?
operations- focuses on performing activities more efficiently
strategic- focuses on choosing appropriate activities for the operation, eliminating non-essential activities
Why do most firms prefer FIFO over WA?
bc FIFO only represents current period efforts
Product 1 is 3,000 lbs
Product 2 is 7,000 lbs
JC are $15,000. Allocate the JC based on PMM.
product 1= $4,500
product 2= $10,500
which r-squared is more reliable?
1- .3
2- .1
3- .7
#3
What's the name of Destiny's Child's debut album?
Destiny's child