Bargas Framing's Cost Formula for Its Supplies Cost Is $2,240

question 286

Multiple Choice

Bargas Framing's cost formula for its supplies cost is $2,240 per month plus $6 per frame.For the month of May,the company planned for activity of 808 frames,but the actual level of activity was 810 frames.The actual supplies cost for the month was $7,090.The supplies cost in the flexible budget for May would be closest to:

• A)$7,088
• B)$7,090
• C)$7,106
• D)$7,100

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Definitions:

Reengineering

Reengineering involves fundamentally redesigning business processes, structures, and systems to achieve significant improvements in performance, productivity, and quality.

TQM

Total Quality Management is a management approach focused on long-term success by focusing on customer satisfaction, and involving all members of an organization in improving processes, products, services, and the culture in which they work.

Organizational Change

The process through which organizations transform their structure, strategies, processes, or culture to adapt to changes in the environment.

Reengineering

is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.