Fifth edition Alnoor Bhimani Charles T. Horngren Srikant M. Datar Madhav V. Rajan Farah Ahamed



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2
a
Total quality management (TQM) is a philosophy based on the ideas of continuous improvement and getting it right the first time. E plc would initially review the alternative services that it provides to its customers and consider how it may improve.
b
The likely costs to be incurred by E plc will include
• Additional training costs to increase the awareness of employees as to how to use machinery, handle materials and work-in-progress;

Supervision/testing expenditures so that E plc can ensure that the items delivered to customers are of good quality. As a consequence, the benefits anticipated by E plc would include
• Lower wastage of damaged components
• Faster turnaround of customer orders
• Fewer customer complaints in respect of being delivered poor quality items.

Page
20
[AQ1]
The solution to exercise 2.16 (Representative cost driver column) does not match the exercise 2.16 in the pdf. Please check and confirm. Page
51
[AQ2]
Please check if the symbol € under the heading 'Solution Exhibit A' should be deleted. Page
53
[AQ3]
Please confirm if June 2007 should be June 2010 instep of Solution Exhibit 4.19. Page
59
[AQ4]
Please confirm the correct placement of the footnote indicators (*,

,

) under Solution Exhibit C and in similar instances. Page
84
[AQ5]
Please confirm if there should be a space between Nkr and the digits following it as used in other chapters (chapter 4). Page
91
[AQ6]
Please confirm if the euro symbol should be used before '121 per litre' and in similar instances in Solution Exhibit 6.20. Page
96
[AQ7]
Please confirm if the number '1' should be retained in the row 'Deduct expected separable costs to complete and sell' in section 6.23. Page
123
[AQ8]
Please confirm if the list number '2' just above 'Contract B' under section 8.18 can be removed. Page
126
[AQ9]
'skr' is represented both as 'SKr' and 'Skr' in section 8.23. Please confirm which one to follow. Page
130
[AQ10]
Should the 'X' in section 8.26 be italicised Page
178
[AQ11]
The solution for exercise 12.21 is not given. Please check and provide. Page
202
[AQ12]
The meaning of the sentence 'If the extra sales' profits more than' is not clear. Please check. Page
215
[AQ13]
Please confirm if this is acceptable. Page
216
[AQ14]
The solution to exercise 15.8, states 'Chapter 15 uses the phrase continuous improvement

standard costs however, only apart or variant of it (continuous improvement 'continuous improvement budgeted cost) is found in the pdf. Please check. Page
234
[AQ15]
The fraction in solution to exercise 16.12
SFr 62,400 1,040 4

is changed to
SFr 62,400 1,040 4
×
. Confirm if this is correct. Page
241
[AQ16]
Please confirm if the part 'a' inserted for 'Direct-cost variances' in solution to exercise 16.22 is correct. Page
306
[AQ17]
The sentence 'Increase in operating income, €0.48 × 19,500 = €9,360. Hence, Lappalainen should accept the outside contractor’s offer' is repeated in the section 20.20. Please check.

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