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12 Exercise 12.15 Trend Report, Non-Value-Added Costs. Chapter Refer to Exercise 12.14. Suppose that for 20x2, Sanford Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 2020, the information shown on page 680 is provided. Activates Activity Driver Purchasing Parts Receiving Part Purchase Orders Receiving Orders Number of moves Moving Parts Setting up equipment Setup Hours Required: SQ 0 2,600 5,200 0 AQ 3,120 2,600 6,500 840 SP 117 $300 195 395 1. Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1 2. What is the role of activity reduction for non-value-added activities? For value-added activities? 3. Comment on the value of a trend report.

12 Exercise 12.15 Trend Report, Non-Value-Added Costs. Chapter Refer to Exercise 12.14. Suppose that for 20x2, Sanford Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 2020, the information shown on page 680 is provided. Activates Activity Driver Purchasing Parts Receiving Part Purchase Orders Receiving Orders Number of moves Moving Parts Setting up equipment Setup Hours Required: SQ 0 2,600 5,200 0 AQ 3,120 2,600 6,500 840 SP 117 $300 195 395 1. Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1 2. What is the role of activity reduction for non-value-added activities? For value-added activities? 3. Comment on the value of a trend report.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter12: Activity-based Management
Section: Chapter Questions
Problem 15E: Refer to Exercise 12.14. Suppose that for 20x2, Sanford, Inc., has chosen suppliers that provide...
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Chapter 12 Exercise 12.15 Trend Report, Non-Value-Added Costs. Refer to Exercise 12.14. Suppose that for 20x2, Sanford Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 2020, the information shown on page 680 is provided. Activates Activity Driver Purchasing Parts Receiving Part Moving Parts Setting up equipment Setup Hours Required: Purchase Orders Receiving Orders Number of moves SQ 0 2,600 5,200 0 AQ 3,120 2,600 6,500 840 SP 117 $300 195 395 1. Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1 2. What is the role of activity reduction for non-value-added activities? For value-added activities? 3. Comment on the value of a trend report.
Transcribed Image Text:Chapter 12 Exercise 12.15 Trend Report, Non-Value-Added Costs. Refer to Exercise 12.14. Suppose that for 20x2, Sanford Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 2020, the information shown on page 680 is provided. Activates Activity Driver Purchasing Parts Receiving Part Moving Parts Setting up equipment Setup Hours Required: Purchase Orders Receiving Orders Number of moves SQ 0 2,600 5,200 0 AQ 3,120 2,600 6,500 840 SP 117 $300 195 395 1. Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1 2. What is the role of activity reduction for non-value-added activities? For value-added activities? 3. Comment on the value of a trend report.
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