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
• 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.
- Managerial Accounting
- Planning, Directing and Cont