Allscott Company is developing its budgets for 2013 and for the first time will use the Kaizen approach. The initial 2013 income statement, based on static data from 2012, is as follows:
Selling prices for 2013 are expected to increase by 8%, and sales volume in units will decrease by 10%. The cost of goods sold as estimated by the kaizen approach will decline by 10% per unit. Other than depreciation, all other operating costs are expected to decline by 5%.
Required:
Prepare a Kaizen-based budgeted income statement for 2013.
Definitions:
Reliability
The quality or state of being dependable or capable of performing consistently under specified conditions.
TPM
Total Productive Maintenance; a proactive maintenance approach focusing on improving equipment effectiveness and employee involvement.
TQM
Total Quality Management; a comprehensive and structured approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.
Maintenance
Activities undertaken to keep equipment or systems functioning efficiently through preventive measures or repairs.
Q34: At Deutschland Electronics, product lines are charged
Q36: Shamokin Manufacturing produces two products, Big and
Q60: Should a company with high fixed costs
Q62: When all fixed manufacturing costs and variable
Q74: Aunt Ethel's Fancy Cookie Company manufactures and
Q81: Even where separate variable and fixed manufacturing
Q83: For the wet ingredients what are the
Q91: The direct materials mix variance is the<br>A)
Q120: Capacity cost is a variable overhead cost.
Q152: The production-volume variance is<br>A) $2,000.<br>B) $900.<br>C) $2,400.<br>D)