Strategy, balanced scorecard, service company. Compton Associates is an architectural firm that has been in practice only a few years. Because it is a relatively new firm, the market for the firm’s services is very competitive. To compete successfully, Compton must deliver quality services at a low cost. Compton presents the following data for 2016 and 2017. Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Compton chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year. 1. Is Compton Associate’s strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe key measures you would include in Compton’s balanced scorecard and your reasons for doing so.

Strategy, balanced scorecard, service company. Compton Associates is an architectural firm that has been in practice only a few years. Because it is a relatively new firm, the market for the firm’s services is very competitive. To compete successfully, Compton must deliver quality services at a low cost. Compton presents the following data for 2016 and 2017. Architect labor-hour costs are variable costs. Architect support costs for each year depend on the Architect support capacity that Compton chooses to maintain each year (that is, the number of jobs it can do each year). Architect support costs do not vary with the actual number of jobs done that year. 1. Is Compton Associate’s strategy one of product differentiation or cost leadership? Explain briefly. 2. Describe key measures you would include in Compton’s balanced scorecard and your reasons for doing so.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 8MC: What is the conversion cost to manufacture insulated travel cups if the costs are: direct materials,...

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Q15. A company manufacturing two products furnishes the following data Annual output: Product Output units Machine Hours Purchase Orders Machine set-ups A 5000 20000 160 20 B 60000 120000 384 44 Total 65000 140000 544 64 The annual overheads are as under. Rs Volume related activity costs 550,000 Set up related costs 820,000 Purchase related costs 618,000 Total 1,988,000 You are required to calculate the overheads cost per unit of each product A and B based on Activity based costing method.
QUESTION 2/15 2020033800068702: From the following information distribute cost of Time Keeping department among various other departments: Total cost of Time keeping department as per primary Distribution: Rs. 10000, Ratio of Stores Requisition: 4:3:2:1, Ratio of Machine Hours: 3:3:2:2, Ratio of No of Employee: 3:4:2:1 and Ratio of Floor area: 5:3:1:1 O Rs. 4000, Rs. 3000, Rs. 2000 and Rs. 1000 O Rs. 3000, Rs. 3000, Rs. 2000 and Rs. 2000 O Rs. 3000, Rs. 4000, Rs. 2000 and Rs. 1000 O Rs. 5000, Rs. 3000, Rs. 1000 and Rs. 1000
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ion list Requirements 2. 3. 1. Compute Pelican Design's direct labor rate and its predetermined overhead allocation rate for 2024. K- Compute the total cost of each job. If Jackson wants to earn profits equal to 20% of service revenue, what fee should she charge each of these two clients? 4. Why does Pelican Design assign costs to jobs? estion 6 estion 7 Pelican Design, Inc. is a Web site design and consulting firm. The firm uses a job order costing system in which each client is a different job. Pelican Design assigns direct labor, licensing costs, and travel costs directly to each job. It allocates indirect costs to jobs based on a predetermined overhead allocation rate, computed as a percentage of direct labor costs. Print Done First, enter the direct costs for each job. Then Pelican Desig Estimated Cost of Delicious Treats a Data table Direct labor hours (professionals) Direct labor costs (professionals) Support staff salaries Computer leases. Office supplies Office rent Print At…
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10-21 Estimating a cost function using the Account Analysis Approach. Khan Sunil Enterprises, a software engineering firm, uses the account analysis approach to identify the cost behavior of production costs for its premium software. The following details relate to the company's activities for June 2019 in which it produced 350 units. Total Variable Fixed Materials used in production 270,000 Labor costs Production facility costs Total production cost R 10,000 2 4,000 2270,000 2134,000 R130,000 3 3,000 3 17,000 2103,000 100,000 2507,000 3500,000 Required 1. Describe the production cost in the equation form y = a + bx 2. Assume the company intends to produce 400 units next month, calculate the total production costs for the month. 3. Comment on the usefulness of the estimation to management of the company.