【正文】 ctivities can save $8–$10 on production and postproduction activities. Clearly, the time to manage activities is during the development stage. 13. Target costing is the setting of a cost goal needed to capture a given market share and earn a certain level of profits. Actions are then taken to achieve this goal—usually by seeking ways to reduce costs to the point where the plan bees feasible (often by seeking better product designs). This is consistent with the cost reduction emphasis found in lifecycle cost management. 14. Cells act as a ―factory within a factory.‖ Each cell is dedicated to the production of a single product or subassembly. Costs associated with the cell belong to the cell’s output. By decentralizing services and redeploying equipment and employees to the cell level, the quantity of directly attributable costs increases dramatically. 15. Backflush costing is a simplified approach to accounting for manufacturing cost flows. It uses trigger points to determine when costs are assigned to inventory or temporary accounts. In the purest form, the only trigger point is when the goods are sold. In this variation, the manufacturing costs are flushed out of the system by debiting Cost of Goods Sold and crediting Accounts Payable and Conversion Cost Control. Other trigger points are possible but entail more journal entry activity and involve some inventory accounts. 229 EXERCISES 11–1 a. Structural b. Operational c. Executional d. Executional e. Structural f. Structural g. Operational h. Operational i. Structural j. Executional k. Executional l. Operational m. Operational n. Executional o. Structural p. Operational q. Executional r. Structural s. Structural t. Executional 11–2 Inspecting products, reworking products, and warranty work: These are all qualityrelated activities. This suggests a strategic change in the anizational activity, ―providing quality,‖ (an executional activity). The associated executional cost driver is quality approach. The cost of all three quality activities can be reduced by changing the driver from acceptable quality level (AQL) to total quality management (TQM). TQM emphasizes zero defects. As the anization strives to achieve a zero defect stage, the demand for inspecting products, reworking, and warranty work diminishes. As less activity demand occurs, resource spending on these activities can be reduced. Changes in other anizational activities may also bring about cost reductions. Both ―using employees‖ (executional activity) and ―grouping employees‖ (structural activity) can be beneficial. Multitask training and strong employee involvement can produce reductions in the cost of the three qualityrelated activities. Teams, known as quality control circles, can be beneficial. Moving materials: The driver is distance moved. This suggests that some attention needs to be given to the executional activity of providing plant layout. The driver is plant layout efficiency. Changing to a cellular format could bring about significant reductions in the cost of materials handling. 230 11–2 Concluded Setting up equipment: Setup time is the driver. Designing processes, selecting and using process technologies, and providing plant layout are all anizational activities that can affect the setup activity. By choosing a cellular arrangement where the cell is dedicated to a product, setup time can be reduced to zero. For product families, a flexible manufacturing cell can also reduce the time to an insignificant level. Finally, it may be possible to redesign the setup activity so that it bees much more efficient. Purchasing parts: This activity is driven by the number of different parts. This is a driver that also relates to plexity, a structural activity. This suggests that reducing plexity will reduce the number of different parts needed and the cost of the purchasing activity. Additionally, the cost of this activity can be reduced by selecting the JIT process technology with its methods that reduce the need for parts inventories. Storing goods and materials: Reducing days in inventory reduces the cost of this activity. This suggests the possibility of looking at the structural activity: selecting and using process technologies. There are process technology choices such as JIT and theory of constraints that produce very low levels of inventory. Expediting orders: Reducing the number of late orders (increasing the number of ontime deliveries) will reduce the cost of this activity. This suggests a need to decrease production time, perhaps by looking at anizational activities such as plant layout and providing capacity. Increasing plant layout efficiency can decrease cycle time. Utilizing capacity efficiently can also decrease the number of late orders. 231 11–3 1. Supplier cost: First, calculate the activity rates for assigning costs to suppliers: Inspecting ponents: $1,200,000/1,000 = $1,200 per sampling hour Expediting work: $960,000/100 = $9,600 per order Reworking products: $6,844,500/1,500 = $4,563 per rework hour Warranty work: $21,600,000/4,000 = $5,400 per warranty hour Next, calculate the cost per ponent by supplier: Supplier cost: Grayson Lambert Purchase cost: $144 ? 200,000 ............... $ 28,800,000 $129 ? 800,000 ............... $103,200,000 Inspecting ponents: $1,200 ? 20 .................... 24,000 $1,200 ? 980................... 1,176,000 Expediting work: $9,600 ? 10 .................... 96,000 $9,600 ? 90 .................... 864,000 Reworking products: $4,563 ? 90 .................... 410,670 $4,563 ? 1,410 ................ 6,433,830 Warranty work: $5,400 ? 200.................