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Comm 101 10 - Oct 9 - Management Accounting.docx

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COMM 101
Jeff Kroeker

th October 9 , 2012 Class 10 – Management Accounting 1) Return of the graveyard shift Question: What is it about the cost structure of automobile manufacturers that makes it logical to operate night shifts? 2) The Heart of the Motor Question : What types of unique costs would this service incur? • The selling point is: a guarantee of a replacement vehicle 3) Sher-wood follows rivals to China Question: What is the motivation for this strategy change? • Reasons for Sherwood’s change in strategy: financial reasons, supply chain reason • Makes hockey sticks, less expensive to make in China, labour cost, raw materials cheaper • Off shore- getting stuff made in another country o Different economic structure, whereas here, there is a minimum wage o Natural disaster, supply chain affected o May have more risk • Outsource – somebody else makes stuff for you • Loss of quality control if outsource/offshore - recalls 4) Westjets 73’s: Too big, too small or just right? Question: Other than the cost of the purchase of the jet, why does the size of the jet matter to management accountants Principles of Accounting – Chp. 17: - Managerial Accounting - Planning, Directing and Cont
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