Sun Systems provides energy audits in residential areas of southern Ohio. The energy audits provide information to
Question:
In 2013, Sun Systems used value engineering to reduce the cost of the energy audits. Managers at Sun Systems want to evaluate whether value engineering has succeeded in reducing the target cost per audit by 5%. Actual results for 2012 and 2013 for Sun Systems are:
Required
1. Calculate the cost per audit in 2012.
2. Calculate the cost per audit in 2013.
3. Did Sun Systems achieve the target cost per audit in 2013? Explain.
4. What challenges might managers at Sun Systems encounter in achieving the target cost and how might they overcome thesechallenges?
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Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
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