An ABC manufacturing company in Waterloo provides training to its employees on a regular basis. The...
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An "ABC" manufacturing company in Waterloo provides training to its employees on a regular basis. The cost of the latest one-day training for its fory (40) employees is listed below. In your calculations, assume 240 working days per year. Use a 10% estimate in your calculation for overhead costs. Lunch Travel Expenses for Instructor Photocopying Instructor Training Material Training Facility (space) Audio and Visual Equipment Pre and Post Learning Materials Shipping Training Material Participants Compensation $1,600 $450 $100 $1,050 $3,000 $350 $200 $400 $120 $14,500 Operational Results Area Manufacturing - bikes Accidents Before Training 6 made per day @100 20 per year $120,000 After Training 8 made per day @100 10 per year $60,000 Value Expressed in $ Increase of $200 per day Savings of $60,000 per year a. Group the costs into Direct, Indirect, Development, Overhead and Compensation for participants. (5 marks) b. Calculate Cost per participant. (1 mark) c. Net Benefit (2 marks) d. Cost Benefit Ratio (2 marks) e. Return on Investment (ROI) (2 marks) f. Explain the importance of calculating benefit-cost ratio (BCR) and ROI. (3 marks) An "ABC" manufacturing company in Waterloo provides training to its employees on a regular basis. The cost of the latest one-day training for its fory (40) employees is listed below. In your calculations, assume 240 working days per year. Use a 10% estimate in your calculation for overhead costs. Lunch Travel Expenses for Instructor Photocopying Instructor Training Material Training Facility (space) Audio and Visual Equipment Pre and Post Learning Materials Shipping Training Material Participants Compensation $1,600 $450 $100 $1,050 $3,000 $350 $200 $400 $120 $14,500 Operational Results Area Manufacturing - bikes Accidents Before Training 6 made per day @100 20 per year $120,000 After Training 8 made per day @100 10 per year $60,000 Value Expressed in $ Increase of $200 per day Savings of $60,000 per year a. Group the costs into Direct, Indirect, Development, Overhead and Compensation for participants. (5 marks) b. Calculate Cost per participant. (1 mark) c. Net Benefit (2 marks) d. Cost Benefit Ratio (2 marks) e. Return on Investment (ROI) (2 marks) f. Explain the importance of calculating benefit-cost ratio (BCR) and ROI. (3 marks)
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a Grouping the costs Direct Costs Lunch 1600 Travel Expenses for Instructor 450 Photocopying 100 Instructor 1050 Training Material 3000 Training Facil... View the full answer
Related Book For
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
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