A company's relationship with its customers has least impact on its credibility
Indicate whether the statement is true or false
FALSE
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F. Marston, Inc. has developed a forecasting model to estimate its AFN for the upcoming year. All else being equal, which of the following factors is most likely to lead to an increase of the additional funds needed (AFN)?
A. A switch to a just-in-time inventory system and outsourcing production. B. The company reduces its dividend payout ratio. C. The company switches its materials purchases to a supplier that offers a longer credit period (with all other terms held equal). D. The company discovers that it has excess capacity in its fixed assets. E. A sharp increase in its forecasted sales.
Jared, Inc. produces glass shelves that are used in furniture. Each shelf requires 3.6 pounds of raw material at a cost of $2 per pound. Unfortunately, given the nature of the manufacturing process, one out of every five shelves is chipped, scratched, or broken at the beginning of production and has to be scrapped.On average, 20 good shelves are completed during each hour. Laborers who work on these units are paid $15 per hour.Required: A. Distinguish between perfection standards and practical standards.B. Who within an organization would be in the best position to assist in setting the: 1. direct-material price standard?2. direct-material quantity standard?3. direct-labor efficiency standard?C. Calculate a practical direct-material and direct-labor standard for each good shelf produced.
What will be an ideal response?
Boise, a division of Price Enterprises, currently performs computer services for various departments of the firm. One of the services has created a number of operating problems, and management is exploring whether to outsource the service to a consultant. Traceable variable and fixed operating costs total $80,000 and $25,000, respectively, in addition to $18,000 of corporate administrative overhead allocated from Price. If Boise were to use the outside consultant, fixed operating costs would be reduced by 70%. The irrelevant costs in Boise's outsourcing decision total:
A. $25,000. B. $25,500. C. $18,000. D. $17,500. E. None of the answers is correct.
Globalization has dramatically changed the clothing industry over the past 25 years. Describe the changes that have occurred and analyze their effects on firms from a corporate social responsibility perspective.
What will be an ideal response?