Activity Based Costing of City Services Essay

September 26, 2017 Construction

Required: 1. The new city manager became elected with the pledge of rapid denationalization. But alternatively of downright denationalization. his first action was to inquire for cost appraisal of public service. Why do you believe he asked for cost appraisal alternatively of privatising the public service right off? Was it a reasonable action?

2. Existing DOT employees were allowed to offer against private concerns. Was it a reasonable determination? For illustration. they could hold been merely fired.

3. How good did the undertaking squad implement ABC for gauging the cost of chuckhole filling? Do you hold with the mode in which they treated equipment cost and extra capacity?

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4. Should the metropolis have allowed the municipal employees to see the ABC estimations and given them the chance to cut down their costs?

5. Calculate the commands the metropolis workers will publish for repairing chuckholes in the Northwest and Northeast quarter-circles.

6. The new city manager wants to go on to outsource metropolis services through competitory command. Do you believe that’s a good thought? What are the concerns the metropolis should see?

Colorscope. Inc.
Direction: 1. What was the value statement of Colorscope to clients? In other words. why would any client go to Colorscope alternatively of other big pressmans?

We are traveling to analyse cost construction of Colorscope utilizing a departmental cost allotment method. This is a two phase system. First categorize cost to different production centres ( = sections = Job homework. Scaning. Assembly. Output. and Quality ) . Then allocate cost in each centre to a occupation in the 2nd phase.

2. Complete the following first stage allotment. Job prep Wages $ 8. 000 Depreciation Rent Others* Total MOH DLH POHR Floor infinite * allocated by DLH Scanning Assembly Output Quality Idle Total

3. Analyze the occupation profitableness by make fulling out the undermentioned sheet with dollars. ( Hint: Add labour cost and allocated MOH. ) Job # 61001 61002 Gross Materials Job prep $ 9. 600 Scaning Assembly Output Quality Net net incomes

62001 Idle Total Profit Then sum up your findings.

4. Analyze the rework cost by make fulling out the undermentioned sheet for the occupations with a rework. Job # 61001 61002 Materials Job prep Scaning Assembly Output Quality Net net incomes

62001 Entire What is the fiscal effect of reworks? ( Hint: compare the net incomes before and after reworks. )

5. What would you urge to Colorscope Inc. to better their concern?


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