Bridgeton industries automotive component & fabrication plant model year budgets for the acf ($000) gross margin model year budget (1991) % share of manifold. 1 would you outsource manifolds from the acf in 1991 why or why not do you need more information they should only outsource if it results in lower costs when they outsourced their muffler-exhausts and oil pans their overhead allocation increased, and their profits decreased. Q would you outsource manifolds from the acf in 1991 why or why not what more information would you want before reaching a final decision a bridgeton should outsource manifolds from acf only if it results in lowering costs as mentioned above, bridgeton outsour. The recommendation based on the model year budget of 1991 (see table 6) was that they should not outsource manifolds from the acf in 1991 because it make the total gross income of the company dramatically decrease.
Will not change for fuel tanks and doors produced by the acf of bridgeton industries assume also that if manifolds are produced, their selling prices, volume, and. Immediately affecting the acf should bridgeton choose to outsource the manifolds in the 1991 model year bridgeton industries. Apr 1991 52214-35 c outsourcing (contractor facility, contractor equipment or contractor staff) of systems or network operations, telecommunications services. Bridgeton industries cost analysis [pic] course: 45-701 submitted to: prof zhaoyang gu submitted by: neha arya marc brands anil konjalwar alok satyawadi competitive environment the acf plant has experienced serious cutbacks throughout the 80s due to competitive pressure caused primarily by the entrance of foreign competition in a market formerly dominated by us auto manufacturers and the oil.
The customer experience can be increased manifold if executive reports are made user-friendly and in such a manner that the executives are encouraged to see patterns and trends in data, and to even question the data. I will then create an estimated model year 1990/1991 in order to evaluate the effect that the outsourcing of manifold production will have on the remaining plant operations and therefore also upon. 1 million by reducing the overheads from $79 3 million in 1990 to $43 2 million in 1991 this clearly presents that by employing outsourcing strategy for the manifold production line, the company can experience significant savings in terms of costs and overheads.
You just clipped your first slide clipping is a handy way to collect important slides you want to go back to later now customize the name of a clipboard to store your clips. In addition, if bridgeton industries decides to outsource a product, the resulting increase in production capacity needs to be utilized in another manner (examples additional production of current products, corporate administration, renting of space, etc. Assignment one design of cost systems - bridgeton industries question - would you outsource manifolds from the acf in 1991 why, or why not.
Birdgeton case birdgeton case tab 2 for 1991 forecasts if bridgeton industries wants to seriously considering outsourcing the manifold line or any other. The managerial accounting system at bridgeton, as it is presented, seems to be lacking detail necessary for efficient analysis doors and manifolds mufflers. Ba 382t syllabus 21 temba ba 382t--managerial accounting syllabus spring 2004 professor: robert g may office: cba 3412a phone: (512) 471-5155 fax: (512) 471-3904 e-mail. Manufacturing and costs essay sample acf, an automotive supplier, was doing well as a company until foreign competition began to hurt its cash flow. Bridgeton industries case specifically for you manufactured by bridgestone industries at the acf for the year 1991 which considers outsourcing the manifold.
In 1987 acf sought the advice of a strategic consulting firm to review and classify bridgeton's products there were three classifications (class i, ii and iii) for the five products manufactured (fuel tanks, manifolds, front and rear doors, muffles-exhaust systems, oil pans. Bridgeton reacts by closing acf diesel engine plant and hiring strategic consulting firm to classify their products on competitive position outsourcing manifolds. Overhead allocation and cost distortion - bridgeton case march 16, 2012 leave a comment q1the overhead allocation rate used in the 1987 model year strategy study at the acf was 435% of direct labor cost. Manifold recommendation based on current cost system if we assume that the 1991 products, prices, sales volumes, materials costs and overhead are unchanged from 1990 and that there are no process improvements that would lead to a reduction in the direct labor of a product, it can be inferred that the company's profits would be identical to.
Therefore, we should not outsource or delate manifolds in conclusion, if acf wants to get more accurate evaluation on products, abc costing system should be adopt the consulting company should also make sure the data from competitors is reliable. In malice of the above restorative steps the manifolds were farther degraded from class 2 to class 3 and a move to outsource their production and in malice of all the above steps the works was still losing concern. Kasus bridgeton industries 8238 ÷ $75196 = manifolds: 7 the outsourcing decision • muffler/exhausts and oil pans get outsourced • the acf responds by.
Cash flow and the time value of money - with the use of charts and examples, gives a detailed description of cash flows, the time value of money, and discounted cash flow analysis. Sebelum bridgeton menghentikan produksi manifolds yang notabene adalah produk unggulan karena memiliki omset penjualan tinggi dengan keuntungan yang cukup besar dan memilih untuk melakukan outsource dari tempat lain ada baiknya bridgetone mengusahakan pengefisienan produksi manifolds dan tidak melakukan outsource terhadap manifolds karena hal. 5 assume that selling prices, volumes, and materials costs for the 1991 model year will not change for fuel tanks and doors produced by the acf of bridgeton industries assume also that if manifolds are produced, their selling prices, volume, direct labor, and materials will not change either. I will then create an estimated model year 1990/1991 in order to evaluate the effect that the outsourcing of manifold production will have on the remaining plant operations and therefore also upon overall plant profitability.