Paper Tosai
Name: Sharifah Nur Eli Diyana bt Syed Ismail
Chapter 2: Case 2-59
1. Memo
To
: Jim Cassanitti Production Manager
From
: Diyana
Date
: 2 November 2011
Subject
: Costs analysis for Printer Case Department
Rental factory building is $177,000/year. Printer Case Department occupies 1/6 of the factory building, thus the rental is $29,000/year. Rental cost for the Printer Case Department will be incurred even though the department were closed because the vacated space could not be separated from the entire building.
Renting space in the warehouse is $39,000. If the Printer Case Department were discontinued, the entire storage could be moved to the space vacated by the closed department. Therefore, $39,000 is an opportunity cost which means by moving to the vacated space, Comptech Inc will save $39,000. If the Printer Case Department continues to operate, there will be two supervisor salaries incurred in the company cost; salary of current Printer Case Department supervisor and salary of new supervisor for the Assembly Department. However if the Printer Case Department closed, the current supervisor will be assigned to Assembly Department.
2. Competence
The controller should maintain an appropriate level of his professional expertise by continually developing knowledge and skills.
The controller should perform duties in accordance with relevant laws, regulations and technical standards.
The controller should prepare accurate and clear reports after analysis of relevant and reliable information.
Intergrity
The controller should avoid conflict of interest by regularly communicate with business associates.
The controller should avoid from engaging in any conduct that would prejudice carrying out duties ethically.
Chapter 3: Case 2-60 y = F + Vx
(1024S) F + Vx = (1024M) F + Vx
8000 + 0.14x = 11000 + 0.09x x = 60000 copies
Chapter 2: Case 2-59
1. Memo
To
: Jim Cassanitti Production Manager
From
: Diyana
Date
: 2 November 2011
Subject
: Costs analysis for Printer Case Department
Rental factory building is $177,000/year. Printer Case Department occupies 1/6 of the factory building, thus the rental is $29,000/year. Rental cost for the Printer Case Department will be incurred even though the department were closed because the vacated space could not be separated from the entire building.
Renting space in the warehouse is $39,000. If the Printer Case Department were discontinued, the entire storage could be moved to the space vacated by the closed department. Therefore, $39,000 is an opportunity cost which means by moving to the vacated space, Comptech Inc will save $39,000. If the Printer Case Department continues to operate, there will be two supervisor salaries incurred in the company cost; salary of current Printer Case Department supervisor and salary of new supervisor for the Assembly Department. However if the Printer Case Department closed, the current supervisor will be assigned to Assembly Department.
2. Competence
The controller should maintain an appropriate level of his professional expertise by continually developing knowledge and skills.
The controller should perform duties in accordance with relevant laws, regulations and technical standards.
The controller should prepare accurate and clear reports after analysis of relevant and reliable information.
Intergrity
The controller should avoid conflict of interest by regularly communicate with business associates.
The controller should avoid from engaging in any conduct that would prejudice carrying out duties ethically.
Chapter 3: Case 2-60 y = F + Vx
(1024S) F + Vx = (1024M) F + Vx
8000 + 0.14x = 11000 + 0.09x x = 60000 copies