Questions: 1. What factors led to the need for an ABC system at the Tube Shop? (Maximum 150 words) 5 Marks 2. How did advancement in information technology help the Tube Shop in implementing its...

1 answer below »


Questions:


1. What factors led to the need for an ABC system at the Tube Shop? (Maximum 150 words)


5 Marks


2. How did advancement in information technology help the Tube Shop in implementing its ABC/ABM?Explain through providing an example from the case.(Maximum 150 words)


5 Marks


3. “An ABC system suffers from practical deficiencies. In theory, it should be possible to trace all overheads, but in practice it is quite likely that there will be some costs that cannot be traced”. Is the Tube Shop facing this limitation with its ABC system? Explain


(Maximum 150 words)5 Marks


4. Much empirical literature on the ABC/ABM implementation process provides evidence of extreme resistance from employees especially from affected managers. Critically evaluate the development and the implementation process of ABC in Tube Shop and explain why the Tube Shop did not face any resistance from its employees and managers? (Maximum 500 words)15 Marks


Note 1:


While putting forward your arguments in answering Question 4, you are expected to provide empirical evidences through referring to research works published in peer reviewed academic journals. There are no restrictions on how many peer-reviewed articles you should refer to.Your research skills will be assessed through how you use references appropriately rather than how many references you list in the assignment.Please be reminded that there is a world limit in answering this question though.




Advanced Management Accounting 6395 Case Study Assignment Case: East River Manufacturing Questions: 1. What factors led to the need for an ABC system at the Tube Shop? (Maximum 150 words) 5 Marks 2. How did advancement in information technology help the Tube Shop in implementing its ABC/ABM? Explain through providing an example from the case. (Maximum 150 words) 5 Marks 3. “An ABC system suffers from practical deficiencies. In theory, it should be possible to trace all overheads, but in practice it is quite likely that there will be some costs that cannot be traced”. Is the Tube Shop facing this limitation with its ABC system? Explain (Maximum 150 words)5 Marks 4. Much empirical literature on the ABC/ABM implementation process provides evidence of extreme resistance from employees especially from affected managers. Critically evaluate the development and the implementation process of ABC in Tube Shop and explain why the Tube Shop did not face any resistance from its employees and managers? (Maximum 500 words)15 Marks Note 1: While putting forward your arguments in answering Question 4, you are expected to provide empirical evidences through referring to research works published in peer reviewed academic journals. There are no restrictions on how many peer-reviewed articles you should refer to. Your research skills will be assessed through how you use references appropriately rather than how many references you list in the assignment. Please be reminded that there is a world limit in answering this question though.
Answered Same DayDec 22, 2021

Answer To: Questions: 1. What factors led to the need for an ABC system at the Tube Shop? (Maximum 150 words) 5...

Robert answered on Dec 22 2021
114 Votes
QUESTION 1:
What factors led to the need for an ABC system at the Tube Shop? (Maximum 150 words)
SOLUTION 1:
The various problems or issues associated with the method on which cost estimates are prepared
led to the demand for a
scientific approach to costing. The manual production process of Tube
Shop’s had been redesigned. The company is now working on a new $13 million computer
integrated manufacturing line. The company was following the labor related cost system even
after the automation of Tube Shop. The cost system was under strict scrutiny as it was incapable
of providing the reliable cost information that would be required by engineering, marketing and
operations department. It did not disclose the significant differences in the cost of projects.
Therefore, there was a need to implement the activity based costing system in the organization.
Activity based costing system allocates the overhead costs according to usage and provides a
detailed cost sheet showing each cost separately.
QUESTION 2:
How did advancement in information technology help the Tube Shop in implementing its
ABC/ABM? Explain through providing an example from the case.
SOLUTION 2:
The automated system has an internal model of the shop floor with its machines, queues,
material, tooling, consumables and personnel. The automated system maintain separate list for
completed work, work in process and work performed. The automated system has divided the
total process from staging of raw material to completion of manufacturing process and
inspection. The clear identification of each activity involved in the entire production process has
led to the easy implementation of activity based costing system and activity based management.
Activity Based Costing System tried to increase the amount of Tube Shop resource cost that can
be identified with its important activities. The cost is allocated by using different cost pools to
each activity. Thus, it can be identified how much cost is allocated to a particular activity.
QUESTION 3:
“An ABC system suffers from practical deficiencies. In theory, it should be possible to trace all
overheads, but in practice it is quite likely that there will be some costs that cannot be traced”. Is
the Tube Shop facing this limitation with its ABC system?...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here