Bridgeton Industries: Automotive Component & Fabrication Plant DESCRIPTION. The Automotive Component & Fabrication Plant (ACF) was a major supplier of components for the domestic automotive industry‚ the original plant site for Bridgeton Industries. ACF was a long-term business since the early 1900s. The market of ACT’s production was growing and dominated by U.S. automobile manufacturers‚ ACF faced less competition pressure because most competitions from local suppliers and other Bridgeton plants
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The Bridgeton case introduced a relatively simple costing system: DM‚ DL‚ and one pool of indirect‚ support‚ or overhead costs. The one and only "cost pool" containing all overhead (OH) costs was allocated on the basis of DL$. In this case‚ the direct costs seem to be largely variable (i.e.‚ they vary proportionally with production volume)‚ whereas some of the indirect costs are relatively variable and others are largely fixed. Case in point: Not all INDIRECT costs are necessarily FIXED. To figure
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Bridgeton Industries: Automotive Component and Fabrication Plant 3. Calculate the expected gross margins as a percentage of selling price on each product based on the 1998 and 1990 model year budgets assuming selling price and material and labor cost do not change from standard. *See Exhibit 1 for calculations To calculate the expected gross margins as a percentage of selling price‚ first we will need to calculate the total overhead (burden) for years 1988 and 1990. For year 1988‚ the total
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TOPICS IN MANAGEMENT ACCOUNTING AMIS 4310 CASE QUESTIONS Seligram‚ Inc.: Electronic Testing Operations 1. What caused the existing system at ETO to fail? 2. Calculate the reported cost of the five components listed in Exhibit 6 using: a. The existing system. b. The system proposed by the accounting manager. c. The system proposed by the consultant. 3. Which system is preferable? Why? 4. Would you recommend any changes to the system you prefer? Why? 5. Would you
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Bridgeton Industries: Automotive Component & Fabrication Plant The Automotive Component and Fabrication Plant (ACF) was the original plant site for Bridgeton Industries‚ a major supplier of components for the domestic automotive industry. It manufactured fuel tanks‚ manifolds‚ doors‚ muffler/exhausts and oil pans. All its products were sold to Big Three domestic automobile manufactures. Competition was from local suppliers and other Bridgeton plants. The plant well grew and developed as far as
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Obviously‚ there was a significant reduction in direct labor within these two years when there was no obvious change in overhead costs. According to the case‚ the decision to outsource Muffler-exhaust systems and oil pans was based on the model without overhead allocation. Overlooking the overhead allocation represented a nightmare in analysis and led Bridgeton face falling profits. To further explore the problems‚ we allocate overhead costs into each products for getting the true profits and the ROS:
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|SUBJECT: |Bridgeton Industries Case Study | |TO: | | |FROM: | | |DATE: |
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University of Toronto (St. George) 4 Course Materials & Tools ECO 204 (2nd Draft) Book Chapters Posted on 204 website on a continuous basis (Link to 1st Draft) Harvard Business School (HBS) Cases Purchasable here (register as a student) Cases: Prestige Telephone Company‚ Nutrasweet‚ Aluminum Industry (data set‚ pw: quasifixed) ECO 204 Excel (2007) Model Posted on 204 website on a continuous basis Add-in “Data Analysis” and “Solver” tools (instructions) Ajaz Hussain. Department of Economics.
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Cooper Industries Case Study Jonathan De Leon Ann Lewis Mary J. Roy Crystal Vincent University of Phoenix Online Advanced Problems in Finance FIN 545 William Crockett September 5‚ 2005 Cooper Industries Inc. Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries‚ there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each
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Postassignment: Case example Global Forces and the European brewing industry ------------------------------------------------- This assignment is based on the case example ‘Global forces and the European brewing industry’ and relates to two questions raised in chapter 2 at the end of the case example (Johnson et al. 2008‚ p. 91) of the book ‘Exploring Corporate Strategy: Text and Cases’ by Johnson‚ Scholes and Whittington. 1.) Using the data from the case (and any
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