Possible assignment questions What was the competitive environment for power generation equipment in the catty 1990s? 2. What factors led to the need for an ABC system? 3. What are the objectives of the plans activity-based costing system? 4. Conniver a diagram of the ABC system and explain how products are costed in a computer-integrated environment.5. How were the cost driven determined? 6. Nine of the ten different cost drivers refer to the number of times an activity or operation is performed. Only one of the ten cost drivers relates to processing or machine time. Discuss the advantages and disadvantages of selecting the quantity of a cost driver to assign costs as opposed to utilising the time used to perform an activity when assigning costs.
7. How has the computer-integrated manufacturing system mask the tube Shop more efficient? 8. Capacity utilisation remains stuck in the 45-50 per cent area. How does that affect product costs under the ABC system? Explain the conceptual basis for your answer. 9. What other ateax of project design, marketing or manufacturing could be reviewed for continuous process improvement? 10. What role could the ABC system play in East River’s continuous improvement efforts? 11. Evaluate the process of developing and implementing the ABC system? Why wasn’t ABC implemented across the entire plant?
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