Title: Problem 24-4B
QA_Ori:
Part 1
Allocations of joint cost on the basis of sales values
Land preparation, seeding, and cultivating: $700,000
Grade
Sales
Value
Percent of
Total
Allocated
Cost
No. 1 $ 900,000 62.5% $437,500
Harvesting, sorting, and grading: $40,000
Grade
Sales
Value
Percent
of Total
Allocated
Cost
No. 1 $ 900,000 62.5% $ 25,000
Delivery: $17,000 to Grade Nos. 1 & 2
Grade
Sales
Value
Percent
of Total
AllocatedC
ost
No. 1 $ 900,000 64.3% $10,931
* No. 3 Grade delivery costs are separately identified by the company.
Part 2
RITA AND RICK REDDING
Income Statement
For Year Ended December 31, 2013
No. 1 No. 2 No. 3 Combined
Sales (by grade)
Total sales $1,440,000
Costs
Land preparation, seeding,
and cultivating 437,500 242,900 19,600 700,000
Part 3
Delivery costs include both crating and hauling costs. The Reddings are able to identify
the portion of the cost directly related to the No. 3 tomatoes, presumably because the
No. 3s are going to a different destination than the No. 1 and No. 2 tomatoes. If the No.
Title: Problem 24-5B
QA_Ori:
Part 1
Process time 16.0 hours
Part 2
Manufacturing cycle efficiency (16.0 hours/ 50.0 hours) 0.32
Part 3
To increase the manufacturing cycle efficiency to 0.80 Best Ink needs to reduce the total
Title: Serial Problem, Success Systems 1
QA_Ori:
The balance scorecard is a system of performance measures that requires managers to
Title: Serial Problem, Success Systems 2
QA_Ori:
Customer: Percentage of computer workstations returned, number of on-time
workstation deliveries, number of on-time computer system installations, customer
satisfaction survey ratings, number of new customers acquired.
Process: Number of defective workstations produced, materials and labor costs per
Learning: Number of training workshops attended, number of programming certifications
earned by programmers, employee satisfaction survey ratings, employee turnover rate.
Financial: Departmental contribution to overhead, return on investment (assets),
Title: Reporting in Action 1
QA_Ori:
Polaris revenues by product line
($ thousands)
December
31, 2011
December
31, 2010
December
31, 2009
Total revenues $2,656,949 $1,991,139 $1,565,887
* Revenue rounded up so product line total revenues sum to total revenues of
Title: Reporting in Action 2
QA_Ori:
Polaris can divide up the operating expenses into product line direct and indirect
Title: Reporting in Action 3
QA_Ori:
Title: Comparative Analysis 1
QA_Ori:
($ in thousands)
Profit margin = Net income/Sales
Title: Comparative Analysis 2
QA_Ori:
($ in thousands)
Investment turnover = Investment center sales
Investment center average assets
QA_Edit:
Title: Comparative Analysis 3
QA_Ori:
Polaris’s profit margin (8.6%) is higher than Arctic Cat’s (2.8%). Therefore, for every
Title: Ethics Challenge 1
QA_Ori:
There is an ethical concern in this situation. Pincus is taking actions she would not
Title: Ethics Challenge 2
QA_Ori:
Given that Pincus is aware of her behavior, its potential consequences, and the source
of what’s behind her behavior (in this case the focus by management on meeting the
Alternatively, she could stop her lower level and quality of service and explain to
Title: Ethics Challenge 3
QA_Ori:
Senior Security (the employer) is ultimately responsible for any action taken by its
employees, including Pincus. Management must establish an ethical code of conduct to
Title: Communicating in Practice
QA_Ori:
Sample solution
MEMORANDUM
TO: Name, Store Manager
FROM: Your Name, National Office Manager
SUBJECT: New Performance Reporting
DATE: Current Date
All current and future periods’ performance reports for all managers include an
The home office provides several services to all its stores. These include assistance
There are significant expenses associated with the home office services to its stores.
Title: Taking It to the Net 1
QA_Ori:
Instructor note: The objective of this assignment is for students to be exposed to the
different accounting and business applications with spreadsheets.
Title: Taking It to the Net 2
QA_Ori:
Instructor note: The objective of this assignment is for students to be exposed to the
different accounting and business applications with spreadsheets.
Title: Teamwork in Action 1
QA_Ori:
Instructor note: Student answers will vary. The key is to look for clear organizational
structure and sound thinking in designing performance reports.
The student must make decisions about geographic area, type of business segment,
For example, product line managers can report to a central manager for each
area and then product lines can be later combined (at a higher level). Another example
Title: Teamwork in Action 2
QA_Ori:
Having comparable responsibility accounting reports is necessary to reliably compare
For example, if one department’s report separates costs in terms of variable and
Title: Entrepreneurial Decision 1
QA_Ori:
Departmental income statements can be prepared for each department once expenses
Title: Entrepreneurial Decision 2
QA_Ori:
If the indirect expenses are a large portion of total expenses, a departmental income
Title: Entrepreneurial Decision 3
QA_Ori:
United By Blue could use ratings from customer satisfaction surveys, the number of
Title: Hitting the Road 1
QA_Ori:
[Student answers will vary for part (1).] One suggested responsibility accounting
Title: Hitting the Road 2
QA_Ori:
One suggested proposal is
Expense Allocation Basis
Heat Square footage occupied
a show
Title: Global Decision 1
QA_Ori:
Segment Net sales % change from 2010 to 2011
Title: Global Decision 2
QA_Ori:
Title: Global Decision 3
QA_Ori:
The Two-wheeler segment earned more gross margin (profit) in both years (€454.6
Title: Global Decision 4
QA_Ori:
Piaggio’s management can use this information to help establish long-term goals and
strategies and for resource allocation decisions. An important factor in the valuation of