1. A company has gathered the following financial information for itself and a competing firm. It...

   

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1. A company has gathered the following financial information for itself and a competing firm. It wants to compare productivity for the two firms (all numbers in 000s). Labor Plant and equipment Energy Materials Sales Firm A $30,000 200,000 17,500 200,000 1,200,000 Firm B $16,000 150,000 20,500 180,000 900,000 a. Compute partial and total factor productivity measures for Firms A and B. b. What is the picture you get of the two firms? c. What would you suggest to the management of Firm B? 2. For the firms in Problem 1. you have been asked to make a report to the management of Firm A. What are some of the caveats relating to accounting practices would you include in the report? Which num- bers should be interpreted cautiously? 3. For the data in Problem 1, suppose that Firm B is a foreign firm. What additional caveats would you place on interpretation of the data? Aerospace Automotive Communications Components Computer Electromechanical Electronic Subsystems Heavy Mechanical Instrumentation Light Assembly Medical Cross-Industry Marketing Manufacturing Engineering 4.8 8.5 11.6 3.0 5.0 in 16 6.3 4.2 6.0 7.5 2.8 3.8 4.9 12.5 5.0 11.8 2.4 8.0 6.0 4.5 9.0 4.8 2.5 4.0 6.0 Supply Chain 10.0 6.0 20.0 5.5 12.5 10.0 8.0 9.0 6.1 3.3 13.4 8.2 The preceding table shows industry comparisons of the percentage of sales spent on salaries for marketing employees, manufacturing engineering employees, and supply chain employees for several different industries. Rank these industries by the amount spent in each of the areas and report your findings to management. What can you infer from your findings about each of the industries? 6. Using the data from Problem 5, suppose that you are a computer company that spends 9% on market- ing staff, 6% on manufacturing engineering, and 8% on supply chain staff. Comparing your expendi- tures with the previous averages, what would you recommend to management? What more informa- tion would you want? 1. A company has gathered the following financial information for itself and a competing firm. It wants to compare productivity for the two firms (all numbers in 000s). Labor Plant and equipment Energy Materials Sales Firm A $30,000 200,000 17,500 200,000 1,200,000 Firm B $16,000 150,000 20,500 180,000 900,000 a. Compute partial and total factor productivity measures for Firms A and B. b. What is the picture you get of the two firms? c. What would you suggest to the management of Firm B? 2. For the firms in Problem 1. you have been asked to make a report to the management of Firm A. What are some of the caveats relating to accounting practices would you include in the report? Which num- bers should be interpreted cautiously? 3. For the data in Problem 1, suppose that Firm B is a foreign firm. What additional caveats would you place on interpretation of the data? Aerospace Automotive Communications Components Computer Electromechanical Electronic Subsystems Heavy Mechanical Instrumentation Light Assembly Medical Cross-Industry Marketing Manufacturing Engineering 4.8 8.5 11.6 3.0 5.0 in 16 6.3 4.2 6.0 7.5 2.8 3.8 4.9 12.5 5.0 11.8 2.4 8.0 6.0 4.5 9.0 4.8 2.5 4.0 6.0 Supply Chain 10.0 6.0 20.0 5.5 12.5 10.0 8.0 9.0 6.1 3.3 13.4 8.2 The preceding table shows industry comparisons of the percentage of sales spent on salaries for marketing employees, manufacturing engineering employees, and supply chain employees for several different industries. Rank these industries by the amount spent in each of the areas and report your findings to management. What can you infer from your findings about each of the industries? 6. Using the data from Problem 5, suppose that you are a computer company that spends 9% on market- ing staff, 6% on manufacturing engineering, and 8% on supply chain staff. Comparing your expendi- tures with the previous averages, what would you recommend to management? What more informa- tion would you want?

Answer rating: 100% (QA)

A Compute partial and total factor productivity measures for Firms A and B Partial Factor Productivity for Firm A Labor SalesLabor 4000030000 133 Plant and Equipment SalesPlant and Equipment 120000015... View the full answer