Q:

Visit a local restaurant for a meal or imagine carefully about your most current restaurant experience.

Required:

1. List as many activities as you think of that could have been performed by the restaurant's employees for you as a customer.

2. For each activity showing whether it is value-added or non-value-added.

3. Show the possible root cause for each activity.

Target costing: manufacturer

Consider you have just started a business to manufacture your latest invention, the Glammaglob gadget. You evaluates that after a few tears on the market these gadgets may sell for about $250. This evaluates takes account of the introduction of same devices by your competitors. Thus, let's say you want to make a profit of $50 on each gadget sold.

required:

1. Evaluate the target cost for the Glammaglob gadget?

2. Determine the target profit?

3. Evaluate the target price?

4. Consider your management accountants and engineers conclude that your design of the Glammaglob gadget may result in a unit cost of $230. How will you use the idea of the target costing to help achieve your object?

cost of quality report: manufacturer

Universal circuitry manufactures electrical instruments for a variety of purpose. The subsequent costs, related to maintaining product quality, were incurred in May:

Inspection of electrical components purchased from outside supplies $21 000

Costs of rework on faulty instruments 30 000

Replacement of instruments already sold that were still covered by warranty 12 000

Costs of defective parts that cannot be salvaged 9 000

Training of quality control inspectors 16 500

Tests of instruments before sales 6 100

Required:

1. Purpose a cost of quality

2. How do you think management could react to the relative size of the four categories of quality costs?

3. Do you consider that university has identified all of its external failure costs? Describe.