1. Are the vice president’s comments about cost and schedule variance correct? Yes! As we have seen in the case study the Spokane industries are very particular about the earned value reports, as we seen in the reports that the Franklin electronics provided is seemed to be a very basic according their view. The values of cost variance at the 2nd month are like 6K, 2K, 3K, 3K, here the total comes to 14k ($14,000) and the same cost variance values in the following month are presented as 7K, 3K, 5K, 10K ($25,000) respectively, so here we can see that the values that were provided in the 2nd month are less than 3/4th of the 3rd month. Comes to the scheduling variance the values given to the 2nd month are said to be 8K, 1K, 2K, 20K ($31,000), the 3rd month calculations are in the order 12K, 3K, 4K, 26K($45,000), so by seeing this we can easily say that the scheduling variance is overrated nearly 50% of its value in the previous month. So, whatever the sponsor said in the case study is true. I hope their main aim for the need of these earned value reports is to reduce the interchange meet...
p4 and ASET pay only for performance. According to RGIS, this levels the playing field and gives every part-time team member the equal chance to advance their pay. The following is an example of the philosophy behind p4. Let’s assume a store (event) has 100,000 pieces of inventory. 10 team members are scheduled for the event. As a Calc store – an event that RGIS has minimum standards set for – the overall APH must be 2000pph (pieces per hour). APH or Average Per Hour is the total pieces counted divided by the total man-hours used. The event itself has an APH standard, as do individual auditors counting in the store. 100,000 pieces of inventory divided by a 2000pph standard will require 50 man-hours. 50 man-hours divided by 10 team members equals a 5-hour count. Five-hour counts make up about 3/4ths of RGIS’s target completion times; additional pieces require additional people, and vice-versa. The 2000pph standard that this store has would be met if everyone counted at that speed. But in reality, not everyone has the same production capabilities. This is whe...
Overhead based on direct labor includes the cost of the Product Development Support Center, interest expenses, and general and administrative expenses. The Product Development Support Center failed to account for hours spent on each product, which will not only complicate the product cost calculations, but also the calculation of capitalization expenses later on. The Development Support Center will be most used during the peak (i.e. most hours) time of development for each product, and hours worked will probably be the best way to divvy up the costs of the support center. The money invested in the company is being used on developing each product right now. I figured interest would best be divvied up by hours to attribute the interest expense to the product using the most of the investment. Similar to the reasons stated before general and administrative costs are going to be associated with the most prominent product, and that is best seen through hours. (Figure A)
...everal employees before they are considered correct to submit into accounting systems. All transactions will require a series of reviews and dual sign off before final approval.
Employees protested, “that supervisors should have received a reduced bonus because they were not working as hard as they are and the company might be playing with the numbers” (Beer & Collins, 2008 p.6). A beneficial system for the new Scanlon Plan is to rearranged payout count. This will help to regain trust amongst employees and management. Equity Theory stresses integrity to all compensation arrangement and if this is effectively executed, then this will resolve the mistrust issue that employees have with their management team. The rewards should not be paid on a consistent month-to-month basis, instead, on a settled proportion plan, which gives rewards "each nth time the right behavior is demonstrated" (Bauer and Erdogan, 2013, p. 112). Traditionally, this would imply that workers are paid reward each time a specific measure of cash in permitted payroll is met. “The current permitted payroll is at 38% of sales value” (Engstrom, 2008). This requires no change. Instead, when Engstrom comes to a permitted payroll of one million dollars, then 10% of that sum should naturally disbursed to workers as rewards. This tackles numerous past issues with the Scanlon
be a thing of the past. Information that has been funneled to Accounting headquarters thru
...ts stakeholders and stabilized the internal culture. If compensation for the organization’s executives were tied to designated performance indicators for ARC (Lytle, 2013), the organization may actually operate more efficiently and effectively.
This analysis shows that the projects NPV as 13.37 million dollar. Our result is slightly different than the presenting team because of rounding. But both of our teams had positive NPV which suggest that the project should be accepted.
d. To improve the understandability and comparability of amounts reported by requiring employers with similar plans to use the same method to measure their pension and other postretirement benefit obligations and the related costs of the postretirement benefits.
... standard and help to reduce the preparer cost. And it has also enhanced the financial statements decision usefulness and make the organization prepare for expanded disclosure requirements.
outlined in this report, but will need to be executed to ensure the increased profitability of
...ccurately reflects the intrinsic value of the company from the shareholders point of view and their expectations of future earnings.
...r investigate what sort of rewards or fringes would their employee’s desire compared to the old method of monetary incentives for the beneficial for the company”.
To test the financial feasibility and plan acceptability, there must be information on the magnitude, and share of estimated project cost that are reimbursable. This information can be derived from cost allocation. Also where cost sharing is required in the multipurpose planning process cost allocation can be applied. Cost allocation also provides information necessary for allocating the real expenditures ensuring that the cost account are maintained in line with plan formulation and allocation principles during the subsequent c...
...time not provide them information that would allow them to game the system to receive higher compensation than they deserve. The tool’s desire is to fairly compensate the employee for reaching the organizations objectives and making the company successful.
...lementation of the solution by the committee. Worker compensation cost also reduced by 10%. This saved Quad graphics money that would be used in compensation and valuable days that would have been lost due to worker absence (Lauren, 2006).