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harina [27]
3 years ago
6

Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has bee

n a long-simmering dispute between the company’s estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and nonroutine work, such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: ""My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $2.50 to determine the bid price. Since our average cost is only $2.175 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart."" To shed light on this controversy, the company initiated an activity-based costing study of all of its costs. Data from the activity-based costing system.
Business
1 answer:
emmasim [6.3K]3 years ago
7 0

Answer:

Mercer Asbestos should define the Cost Drivers first before introducing the Activity Based Costing System, cost drivers actually help the compnay to measure the cost per unit based on the contribution / impact of eac activity that had direct relation with the cost.  

Explanation:

Estimator should define the cost drivers such as labor, factory overhead  indicators and which has impact on the performance activity of both routine and non routine works.

Possible cost drivers for the below activities can be;

  1. Removal of asbestos insulation around heating pipes in older homes. Likely cost drivers can be ( Direct Labor Hours Involved in the activity, Other indirect manpower hours dedicated for the activity)
  2. Removal of asbestos-contaminated ceiling plaster in industrial buildings. Likely cost drivers can be ( Total covered area where contaminated ceiling plaster is present, Supervisors and other manpower involved in the activity).

Once the drivers have been defined cost/unit based on ABC system will help the decision makers such as Cost Planners to quote the accurate selling price to cover the profit margin.

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Semmy [17]
8 choc chip and 12 sugar
3 0
4 years ago
4. The Mexican peso has weakened considerably relative to the dollar, and you are trying to decide whether this is a good time t
LenKa [72]

Answer:

The forecast exchange rate in one's year time according to Goldman Sachs is MXN 14.25/USD

Explanation:

The fact that the Mexican Peso will lose 15% of its value to the dollar means that a dollar will command 15% of the current Peso value  in  a year's time.

Mathematically, MXN 9.5*1.15= MXN14.25 in a year's time.

It also implies that a Mexican with dollars wanting to convert into MXN in a year's time will receive more Peso compared to now.

5 0
3 years ago
Lloyd is a divorce attorney who practices law in Florida. He wants to join the American Divorce Lawyers Association (ADLA). The
Rasek [7]

Answer:

13 years

Explanation:

Note that, if we add the annual interest rate of 7.9% to $8000 [(0.079*8000)+8000] we get a total value of $8632. We perform random division of the 8632 with 11 12, 13 years we note that at 13 years the total annual payment is lowest.

Such that 8632/13 years= $664 lower than paying $750.

8 0
3 years ago
J&J Foods wants to issue 5.4 percent preferred stock with a stated liquidating value of $100 a share. The company has determ
Studentka2010 [4]

Answer:

$65.85

Explanation:

Calculation for What should the offer price be

Using this formula

Offer price=(Preferred stock× Liquidating value)/Return

Let plug in the formula

Offer price = (0.054 × $100) / 0.082

Offer price=5.4/0.082

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Therefore the offer price should be $65.85

3 0
3 years ago
The manager of manufacturing consults with a customer service representative to determine the status of a shipment to a customer
DiKsa [7]

Option C

This is an example of​ diagonal communication.

<u>Explanation:</u>

Diagonal communication is the distribution of information between various structural levels inside a business. Diagonal communication is advantageous as it is active, practical and valuable. It can also develop greater coordination between staff members. It can assist in solving problems precisely as various approaches are taken concurrently.

It lessens the uncertainties of falsification or distortion by promoting communication among the appropriate parties. It also diminishes a manager's communication workload because he doesn't ought to work as an emissary among his direct statements and other administrators.

8 0
3 years ago
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