MAHM8e Chapter12.Ab.az

8/16/2019 MAHM8e Chapter12.Ab.az

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PowerPointPowerPoint Presentation byPresentation by

Gail B. WrightGail B. WrightProfessor Emeritus of AccountingProfessor Emeritus of Accounting

Bryant UniversityBryant University

© Copyright !!" #homson $outh%Western& a part of #he

#homson Corporation. #homson& the $tar 'ogo& an(

$outh%Western are tra(emar)s use( herein un(er license.

MANAGEMENT

ACCOUNTING

8th EDITION

BY

HANSEN & MOWEN

* #AC#+CA' ,EC+$+- /A0+G

STUDENT EDITION


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1. Describe the tactical decision-making

model.

2. Explain how the activity resource usagemodel is used in assessing relevancy.

3. Apply tactical decision-making concepts in

a variety o business situations.

LEARNING OBJECTIVES

!ontinued


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". !hoose the optimal product mix when

aced with one constrained resource.

#. Explain the impact o cost on pricingdecisions.

$. %se linear programming to ind the optimal

solution to a problem o multipleconstrained resources. & Appendix)

LEARNING OBJECTIVES


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#AC#+CA' ,EC+$+- /A0+G1,efinition

!onsists o choosing among

alternatives with an immediate

or limited end in view.

'( 1


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$#2A#EG+C ,EC+$+- /A0+G1,efinition

)s selecting among alternativestrategies so that long term

competitive advantage is

established.

'( 1


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#AC#+CA' /-,E'

A general approach to tactical decision makingincludes*

1. +ecogni,e deine the problem

2. )dentiy alternatives eliminating those that areuneasible

3. )dentiy costs beneits

". /otal relevant costs beneits o eachalternative

#. Assess 0ualitative actors

$. elect alternative with greatest overall beneit

'( 1

Ae !"alitati#e $a%tor


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#+,WE'' P2-,UC#$1 Bac)groun(

/idwell roducts )nc. is acing expanded

production that is straining the capacity in

acilities with # years remaining on theirlease. /wo easible alternatives under

consideration are a to rent an additional

building or warehousing and ' outsource

production. /he !( will prepare a report o

detailed costs or these alternatives.

'( 1


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APP'3+G #AC#+CA' /-,E'

'( 1

Ste( )* Deine the problem )ncrease capacity or warehousing production

Ste( +* )dentiy alternatives 1. 4uild new acility

2. 'ease larger acility5 sublease

current acility3. 'ease additional acility

". 'ease warehouse space

#. 4uy shats bushings5 reeup space

!ontinued


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APP'3+G #AC#+CA' /-,E'

'( 1

Ste( ,* )dentiy costs beneits Alt -* 6!osts7 8 4eneits

Alt .* 6!osts7 8 4eneits

Ste( -* /otal rele#ant costs beneits

Alt -* +elevant 6!osts7 8 4eneits

Alt .* +elevant 6!osts7 8 4eneits

Di$$erential %ot

Ste( .* Assess 0ualitative actors 1. 9uality o external supplier

2. +eliability o externalsupplier

3. rice stability". 'abor relations community

image

Ste( /* :ake decision !ontinue producing leasewarehouse


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2E'E4A# C-$#$1 ,efinition

Are uture costs that dier

across alternatives.

'( 1

di$$er a%ro alternati#e0


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2E'E4A# 4$. +22E'E4A#

C-$#$

'( 1

Cot to Ma1e

Cot Not toMa1e

Di$$erentialCot

Dire%t la'or ; 1#


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/AU5AC#U2+G 5+2/1 Bac)groun(

A manuacturing irm employs ive ?

engineers with a capacity o 1


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hould the irm consider

accepting a special order thatuses #


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$WA$E3 /AU5AC#U2+G 1 /a)e%or%Buy Bac)groun(

wasey :anuacturing a printer

manuacturer will switch to a printer that

does not use an electronic component itcurrently produces. hould wasey

produce 1


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$WA$E3 /AU5AC#U2+G1 2elevant +nformation

'( 3

Ma1e B"4 Cot to Ma1e

E0uipment +ent ; 12


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-2#- /A#E2+A'$1 0eep%or%,ropBac)groun(

Corton :aterials produces 3 products*

blocks bricks and tile. /he tile segment

has a negative segment margin and doesnot contribute to common ixed

expenses. hould Corton drop the tile

division

'( 3

!ontinued

'( 3


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-2#- /A#E2+A'$1 0eep%or%,rop

'( 3

Blo%1 Bri%1 Tile Total

ales ; #


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-2#- /A#E2+A'$ 1 0eep or ,ropAnalysis

'( 3

4ecause Corton will lose sales in both

blocks and brick i ceiling tiles aredropped and replacing ceiling tiles with

loor tiles is less proitable the irm is

better o to keep the ceiling tile

division.

'( 3


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+CE C2EA/1 $pecial -r(er Bac)groun(

An ice cream company is operating at =


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+CE C2EA/ 1 $pecial -r(er Analysis

'( 3

Even though the special order price or 2

million gallons o ice cream is below the

normal selling price o ;2.


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6-+# P2-,UC#$1 ,efinition

ave common processes cost o production up to a

split-o point.

'( 3

%ot o$ (rod"%tion

'( 3


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APP'E#+/E 6-+#

P2-,UC#+-

'( 3

E78+B+#E78+B+# *%9*%9

'( 3


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APP'E#+/E 1 Process 5urther Analysis

'( 3

Even though processing grade 4 apples

urther increases costs there is more

proit to be made rom making pie illing

than rom selling grade 4 apples by the

bag.

'( "


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C-$#2A+#$1 ,efinition

Are limitations a businessaces such as limited

resources or demand.

'( "

'( #


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P2+C+G1 'egal Aspects

redatory pricing

A means o setting price to eliminate competition

Dumping on international market

rice discrimination

!harging dierent prices to dierent customers

rice gouging%sing market power to set prices too high

'( #

'( $


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G2AP8+G $-'U#+-

'( $

E78+B+#E78+B+# *%:*%:

'inear programmingdemonstrates the easible

production region

optimal solution or

complex problems.


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THE END

CHA:TE; )+

MAHM8e Chapter12.Ab.az

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