Answer:
<em>Net operating Income of the company 130,000</em>
Explanation:
![\left[\begin{array}{cccc}-&East&West&Total\\Sales&690,000&140,000&830,000\\Variable&352,000&56,000&408,000\\Contribution&338,000&84,000&422,000\\Fixed Cost&104,000&24,000&292,000\\Income&234,000&60,000&130,000\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D-%26East%26West%26Total%5C%5CSales%26690%2C000%26140%2C000%26830%2C000%5C%5CVariable%26352%2C000%2656%2C000%26408%2C000%5C%5CContribution%26338%2C000%2684%2C000%26422%2C000%5C%5CFixed%20Cost%26104%2C000%2624%2C000%26292%2C000%5C%5CIncome%26234%2C000%2660%2C000%26130%2C000%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We have to arrange the values, and don't forget to add the common fixed cost of 164,000 in the total fixed cost line.
Net operating Income of the company 130,000
Answer to Question 1:
The forces that had lessened the importance of the cost and management accounting systems in today's dynamic world are as under:
- The ancient bookkeeping and the costing techniques were very time consuming and the accounting systems were also not integrated with the financial accounting systems. Today we have very robust and integrated systems which helps the management of the business operations nation wide with greater security and better performance than the previous old versions.
- The complexity of the organization operations have resulted in origination of additional management accounting techniques that were adapted in the form of automated software, that are used to produce management reports on daily, weekly, monthly and yearly basis. The examples include the Throughput costing, Activity based costing, Bench-marking techniques, etc.
- The activities automation has led to attaining of maximum efficiency possible in some areas which wasn't possible in the past. The robots management systems, activity automation, etc has increased the fixed cost share in the total cost and the variable cost has become a very minute share of the total cost of the activity. This variable cost which is often referred to as controllable cost, is very less in percentage share of total cost today than 10 years back. In the future, we will see it as a very very very small share of total cost. This makes the today's management costing techniques obsolete and requires new solutions, new techniques, new softwares, etc. to manage the companies operations.
Answer to Question 2:
The target costing is a costing technique that helps to reduce the cost of the company operations by setting cost targets for the operations. The first step under target costing is to set a selling price for the product and the second step is to set the target profit margin. Now at this position we are able to derive the target cost by taking the difference of profit margin and the selling price of the product. At this stage the actions and reforms required to achieve this target cost are determined and implemented in the current operating activities. The best part of the target costing is that it says that the pricing though matters but the main aspect of a product success is its cost controls. If the company is able to control the cost of the product then it can control the movement of prices in the market. So target costing specially focuses and stresses upon cost control procedures.
As Target costing is all about cost controlling and can be applied to any sector. In Ghana, target costing will help to control the cost of the services that the banking sector renders to its customers. This reduction in services cost can be achieved by automation, installation of new softwares, Investing in automated teller machines, etc. By gaining efficiencies, the banking sector will substantially reduce its cost thus achieving its target cost.
By achieving the target cost the bank will have to sell at the same rate as the bank had invested its time and money in efficiency gaining activities. There are a lot of activities and products that can be automated and that can help to achieve the target cost. For example, promoting internet banking will reduce the cost of ATM management, paper cost, management time, additional branch opening or extension of building, etc. We can see how easily internet banking will assist the banking sector to achieve its target costs.
Answer:
The correct answer is True.
Explanation:
A good supply chain aims to maximize the profitability of the company while trying to provide the best service in order to obtain a high degree of customer satisfaction. That is why, when planning the design, it must be customer oriented and not only focused on the company.
Steps prior to the design of the supply chain
When designing the supply chain, there are several points to consider in order to obtain a coherent and functional design.
- The members that become part of the chain. The first thing to be fixed are the members that are part of the chain, since this will be the guide to go through the rest of the steps. Within this, a subdivision could be carried out, but it is worth mentioning that an agent can be a principal or support agent jointly depending on the work to be done at each moment:
- Principal. They are the ones that provide direct value to the product or service.
- Of support. They are those members whose function is to provide information or resources to the main members, such as banks.
- Structure that forms the chain, that is, all the phases through which a product / service passes in order to be marketed as such. At this point we must try to be as meticulous as possible and always add as much as possible all the phases that are involved, both in manufacturing and in supply.
- Processes and flows that are carried out in each of the structures mentioned above.
Answer:
Good value, is the right answer.
Explanation:
The given blank will be filled by “good value” because when a restaurant charges or offer a value menu it means that it is just making a minimum profit in order to attract the customers. However, charging a lower price which makes minimum profit results in the good value pricing process. Additionally, good value pricing is a technique to increase their sales.
