The Controller for Truman Canoes Has Gathered the Following Cost

question 336

Essay

The controller for Truman Canoes has gathered the following cost and activity level information:

Required:
1. What is the total cost of producing 2,000 fiberglass canoes?
2. What is the variable cost of producing each fiberglass canoe?
3. Suppose the controller uses the average cost to predict total costs. What total cost would the controller calculate for 3,000 fiberglass canoes?
4. If the controller uses the cost equation to predict total costs, what total cost would the controller calculate for 3,000 fiberglass canoes?
5. Is there a difference between the forecasted total cost using average cost versus the cost equation? If there is a difference, what creates the difference? If there is no difference, when would there be a difference?

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Definitions:

Bureaucracies

Complex organizational systems with structured hierarchies and standardized procedures designed to manage and administer large organizations or governments.

Needs Assessment

A systematic process for determining and addressing gaps between current conditions and desired conditions or "needs."

Statewide Comprehensive

An approach or plan that covers all areas or aspects within an entire state, intended to address complex issues systematically.

Appraisal

The process of evaluating the performance, quality, or value of someone or something, often for the purpose of making a judgement or decision.