In a job order cost system, the unit cost is the total cost per job divided by the units produced. In a process cost system, the unit cost is total manufacturing costs for the period divided by the units produced during the period. 2. Contrast the primary focus of job order cost accounting and of process cost accounting. In contrast to job order cost accounting, which focuses on the individual job, process cost accounting focuses on the processes involved in mass-producing products that
Assignment 2: Project Motorcycles Select one type of project organization that would suit the development of the larger touring class motorcycles. Outline the process steps that your company would take in order to develop the motorcycle. Provide a rationale for the response. I would use for this the pure project management organization. This type of project organization helps to separate this particular project from the home company.
CASE STUDY WRITE UP Harley Davidson Motor Company: Enterprise Software selection Analyzed and Submitted by: Arunava Bandyopadhyay EXECUTIVE SUMMARY: Harley-Davidson Motor Company has been founded in 1903 which had become one of the leading manufacturers of motorcycles around the world. But Harley-Davidson's management understood that there was much that the company could do to enhance internal operating efficiency; one of those areas was in supply management across all of the company's production sites. After defining its needs through its Supplier Information Link (SiL'K) team and extending requests for proposals (RFPs), the company received eight responses and seriously considered three providers. The case study presents the objective of Harley Davidson in selection of the supplier for enterprise-wide procurement and supplier management system. BACKGROUND: Harley-Davidson motor company was founded in 1903 by William Harley and Arthur Davidson.
Costing analysis method: Breaking each product cost into three elements: materials, direct labor and benefits, and overhead. The plant’s financial personnel provided the detailed data. 3. The overhead cost is applied to the cost of product as a percent of direct labor dollar cost. (overhead rate: 1987 model year: 435%, 1990 model year: 563%) 4.
1. Calculate the incremental or marginal cost per chair to LP of accepting the order from Southeast. In deciding how to combine the various inputs to produce output, inputs are usually classified as being either fixed or variable cost. A fixed cost input is defined as one required in the production process but whose quantity employed in the process is constant over a given period of time regardless of the quantity of output produced. The costs of a fixed input must be incurred regardless of whether the production process is operated at a high or a low rate of output.
All of them would be saved. If using numbers in 1988 for estimate, (5,766,000+6,532,000)*434% = $53,373,320 would be saved. Bridgeton accumulates all manufacturing overhead costs into one cost pool, and use direct labor dollar cost as the allocation measure to apportion the overhead costs in the cost pool. Unlike direct labor and direct material costs that can be traced to specific products, overhead costs could be administrative and manufacturing related so that not all of them are involved in ACF’s production. Therefore, there isn’t a high degree of correlation between the units produced and the amount of manufacturing overhead used.
Quality control costs may be a direct cost of the Manufacturing Department, but an indirect cost of an individual job. Answer: True Difficulty: 2 Objective: 1 Terms to Learn: job 3. Cost objects may be jobs, products, or customers. Answer: True Difficulty: 1 Objective: 1 Terms to Learn: job 4. The cost driver of an indirect cost is often used as the cost-allocation base.
If for instance, the corresponding error for 0.75 is 1.3, the optimal stock to keep for that item would be 1.3 * frozen forecast. Hence, this value is the stock for that item. 2) There are different scenarios to determine relevant costs and revenues. The first scenario is where (geographically spoken) the stock kept of a particular item is sold. In this case, all the costs related to buying and selling that product would be included.
They also offer customers options to customize and personalize their bike. In addition to retail, Harley-Davidson, Inc. provides financial services to their customers, making their motorcycles more affordable. Harley-Davidson Motor Company was founded in 1903 by childhood friends William S. Harley and Arthur Davidson. Davidson's brothers, Walter and William A., joined the company a few years later. Based in Milwaukee, Wisconsin, the innovative company quickly made a reputation for itself, winning contests and races across America.
Among others he considered the cruiser market, currently dominated by Harley Davidson. His goal was to compete directly with Harley Davidson by introducing a cruiser that combined Ducati’s high performance engine with its own unique design. The purpose of this study is to identify the optimum decision about entering cruiser segment for Ducati’s future success. This study contains the industry analysis, an internal strategic analysis, company performance, and conclusion and recommendations A. INDUSTRY ANALYSIS: Although the number of motorcycle manufacturers has declined by a large number over the last century, competition exists among companies from different continents.