2. The following information is known about the purchasing department of Busy Company Traditional General Ledger...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2. The following information is known about the purchasing department of Busy Company Traditional General Ledger Salaries Utilities Depreciation Supplies Insurance $240,000 $35,000 $90,000 $30,000 $5,000 Total $400,000 ABC Activities Ordering goods Verifying orders Expediting orders Creating reports Supplier relations Total $170,000 $55,000 $45,000 $40,000 $90,000 $400,000 a. Identify several non-value-added activities in the purchasing department. b. Poor coordination of activities and poor scheduling may create the need to expedite orders. Expediting is often considered a non-value-added cost because customers do not want to pay to expedite (speed up) their orders when the items were not properly purchased originally. What might be some other specific causes of problems that would require expediting? c. Which insights and potential decisions would be possible with the ABC activities information provided that is not available with the traditional reporting of the general ledger accounts for the purchasing department? Be specific. 2. The following information is known about the purchasing department of Busy Company Traditional General Ledger Salaries Utilities Depreciation Supplies Insurance $240,000 $35,000 $90,000 $30,000 $5,000 Total $400,000 ABC Activities Ordering goods Verifying orders Expediting orders Creating reports Supplier relations Total $170,000 $55,000 $45,000 $40,000 $90,000 $400,000 a. Identify several non-value-added activities in the purchasing department. b. Poor coordination of activities and poor scheduling may create the need to expedite orders. Expediting is often considered a non-value-added cost because customers do not want to pay to expedite (speed up) their orders when the items were not properly purchased originally. What might be some other specific causes of problems that would require expediting? c. Which insights and potential decisions would be possible with the ABC activities information provided that is not available with the traditional reporting of the general ledger accounts for the purchasing department? Be specific.
Expert Answer:
Related Book For
Operations management processes and supply chain
ISBN: 978-0136065760
9th edition
Authors: Lee J Krajewski, Larry P Ritzman, Manoj K Malhotra
Posted Date:
Students also viewed these accounting questions
-
The following information is known about a project a. Draw the network diagram for this project. b. Determine the critical path and project duration c. Calculate the slack for eachactivity Activity...
-
The following information is known about a linear time-invariant system: (i) The system is causal. (ii) When the input is the z-transform of the output is, (a) Find the z-transform of x[n]. (b) What...
-
The following information is known about a real, causal sequence x[n] and its discrete-time Fourier transform X(e j ): Jm{X(e j )} = 3 sin() + sin(3), X(e j )| = = 3. Determine a sequence...
-
It can be seen that in rolling a strip, the rolls will begin to slip if the back tension, b is too high. Derive an analytical expression for the magnitude of the back tension in order to make the...
-
Match each of the following performance measures to one or more of the four perspectives of the balanced scorecard. Note that a performance measure could measure performance for more than...
-
Provide a Brief overview of what the climate crisis is and how it is related to economic growth. Using the two-panel Solow model diagram, illustrate and explain how the climate crisis is related to...
-
A 0.064-m-diameter nozzle meter is installed in a 0.097-m-diameter pipe that carries water at \(60{ }^{\circ} \mathrm{C}\). If the inverted air-water U-tube manometer used to measure the pressure...
-
An examination of Frosty Corporations records reveals the following transactions: a. On December 31, the physical inventory of raw material was 9,950 gallons. The book quantity, using the moving...
-
Answer the following questions about exchanging information with families about their children. For each procedure listed below, explain how it helps educators and families exchange information about...
-
Criterion for Vapor-Free Flow in a Pipeline, to ensure that a pipeline is completely liquid-filled, it is necessary that p > P vap at every point. Apply this criterion to the system in Fig. 7.5-1, by...
-
A company considers a capacity investment of 2 machines, where there is a probability of 40 % that each machine will have a positive NPV of $1.000.000 and a 60 % probability that the machine will...
-
BamBam Enterprise is a Company that manufactures and sells XY product. Each product must pass through 3 manufacturing processes: A, B and C. Apart from the manufacturing departments, BamBam...
-
Consider the following fixed-rate level-payment mortgage pass-through security: Total principal outstanding = $10,000,000 Weighted average mortgage (Note) rate = 8.25% Weighted average remaining...
-
Solve the inequality. Graph the solution and write the solution in interval notation. 2x + 4 12 10987 -10 23 5 6 7 8 9 10
-
What is the correct x component of the force F2? F3 = 750 N O F2*cos30 F= 625 N O F2*sin 30 O-F2*sin30 45 O-F2*cos30 30 5 X F = 850 N
-
Good Company is a regional chain department store. It will remain in business for one more year. The probability of a boom year is 70 percent and the probability of a recession is 30 percent. It is...
-
Full explanation of Thermodynamics 1st law and all the consequences of the first law?
-
Representative data read from a plot that appeared in the paper Effect of Cattle Treading on Erosion from Hill Pasture: Modeling Concepts and Analysis of Rainfall Simulator Data (Australian Journal...
-
Figure illustrates the BOM for product A. The MPS start row in the master production schedule for product A calls for 50 units in week 2.65 units in weeks 5, and 80 units in week 8. Item C is...
-
The Tri-County Generation and Transmission Association is a nonprofit cooperative organization that provides electrical service to rural customers. Based on a faulty long-range demand forecast,...
-
At the BlueFin Bank corporate headquarters, management was discussing the potential of outsourcing the processing of credit card transactions to Data Ease, an international provider of banking...
-
Is an oscillating object in translational equilibrium?
-
How far above Farth's surface must a \(10,000-\mathrm{kg}\) boulder be moved to increase the mass of the Earthboulder system by \(2.50 \mathrm{mg}\) ? Assume the same ratio of energy change to mass...
-
Show that for small displacements the restoring force exerted on part 2 of the displaced string in Figure 15.14 is linearly proportional to the displacement of that part from its equilibrium...
Study smarter with the SolutionInn App