Qht1 Task 1

Sandrae, your discussion board post covered all of the questions thoroughly and accurately. You provided a lot of detailed and well organized information, excellent job. The chart you provided was exceptional and the chart clearly highlights the differences between the structure, tasks, culture, and strategy of the learning organization and performance organization. Vertical and horizontal structures are very different. The horizontal structure eliminates the old school departmental boundaries of the vertical structure and the horizontal structure allows organizations to improve processes (Daft, 2013).

In exams, you will not have demonstrated your understanding of the answers to these exercises if you seek only to memorise them. You are encouraged to use tutorial time to discuss issues that will test and clarify your understanding of these exercises, as well as expanding your analytical and critical-thinking skills. 2.5 Costs can be classified and reported in many different ways, depending on the purpose for which managers will use the information. Students should be careful how they interpret this phrase. It is not really different costs but the same bundle of

Internal failures happen for a variety of reasons, defective materials, incorrect machine settings, faulty equipment, carelessness and others. The trade-off cost for fixing these types of failures would be cost of additional production time, scrap materials and rework of inadequate products, investigation costs into the root cause of the issues as well as workers’ salaries to not only do the investigation and rework if needed, but the salaries of the employees that are not able to run the production lines to produce items. The other failure cost is External and these are failures that are discovered by the consumer once they have purchased the product. These can carry a much higher cost when found by the consumers. These costs can include Warranty repairs or replacements, costs of having a customer care center or call center to deal with customer complaints, discounts to customers for current or future products and Legal action if the failure of a product caused some type of personal injury.

There are many entrepreneurs who come together as an organization and build an entrepreneurial culture to seek opportunities for innovations. An entrepreneurial culture is an environment where entrepreneurs are inspired to create new innovations. Innovation is basically to have a new idea, to change something from the old and make it new. The way people interact with one another and recognize their environment is all a part of a culture. In a business industry setting, entrepreneurial cultures are defined as the business owners getting together to inspire each other to brainstorm new ideas/ products, innovations. There are many companies out there that exemplify innovation. One that comes to mind and I believe everyone can agree is Apple

This article discussed variable costing, what is primarily used for and applicability in manufacturing situations. Cost accounting supplies management with the necessary information for decision making (Hasan, 2016). The appropriate costing of a product is essential in taking appropriate managerial decisions (Hasan, 2016).

The tradeoff associated with appraisal costs would also be profitable to Acme Catsup Company. Right now we are losing 3 million a year because of returns and defective products. The new data collecting system and third party audits would reduce returns and defects by 90%. This would save us $280,000. The cost for this data collection and third party audits would only be $70,000 a year. This is a small price to pay considering the amount of money we will save.

Internal failures often happen for many different reasons including receiving defective products from vendors, having the wrong settings set on the machines used to produce the product, using equipment that is not up to the correct safety standards, as well as using the improper methods when operating the machines, carelessness of employees, and not using the proper material handling procedures set forth by the company. The costs of internal failures include loss of production time, having to scrap and rework products, having to investigate circumstances within the workplace that are costing the company money, and damage done to the equipment. Regarding rework, often times the salaries and wages of employees can be affected. With his, there are many steps and procedures that a company must undergo and figure out to be able to get to the bottom of the issues that lie within this aspect of internal failure costs.

Businesses – from manufacturing, merchandising and service industries alike – take careful considerations for their costing systems. Setting-up competitive prices in the market can be a result of proper costing methods. Misallocation of costs may lead to incorrect price estimates, continuous production of unprofitable products, and ineffective processing schedules. In this case study, we will discuss the costing methods Zauner Ornaments are currently using and upon conclusion, it will enable us to distinguish the advantages and disadvantages of each costing method.

Product costing is the key to inventory valuation and pricing (Alnestig & Segerstedt, 1996). Inventory valuation, which is usually prepared for accounting purposes, simply focuses on costs incurred within the manufacturing of the products (Jiao & Tseng, 1999, as cited in Sheldon et al., 1991). However, for longer-term decisions such

The final type of cost that I will be talking about is Total Costs. Total cost describes the total economic cost of production which is made up of variable costs, which can change according

The ABC costing system is a technique in cost management. Activity Based Costing aims to reduce costs while at the same time enhancing product quality. Managers use ABC to identify how resources uses cost differently and then determine areas which need continuous improvements. When a unit is produced, unit level activity is done. After a whole batch is doe every time, batch level activity is undertaken for the company. For effective production process, we allow facility sustaining activities in the company. Service industries consist of different services which take different levels of resources. The existence of regulation and stiff competition in the service industry do determine the costing system to be used in the

Generally, every activity that a company does has costs. So all the activities like placing an order for its production, inspection of the raw materials, hiring of employees, training for the new employees, packaging of the products, shipment of the products, advertisements etc.

In conclusion, ABC stands out by breaking down the costs into a very detailed level. This information will give management a very clear picture of which processes come with high costs but little value and how to improve the process or to eliminate the process entirely. This method is suitable for use when there is high overhead, complex product and in very competitive market.

The costing systems aid companies in determining the cost of a product in relation to the revenue the product generates. The costing systems commonly used in businesses include activity-based costing and traditional costing. Traditional costing system assigns the manufacturing overhead based on the capacity of a cost driver. For example, the amount of direct working hours required to produce a particular item. Cost drivers are factors that cause cost to incur, like machine hours, direct material hours, and direct labor hours. Activity-based costing system allocates cost of manufacturing a product in accordance to the activities required to produce the particular item. It’s therefore essential for managers to understand the merits

Major cost categories of the company, the drivers behind these costs, and the internal and external factors that influence costs the most