Please provide answers for 4 questions in the file. Price is negotiable

ACCT 356 Assignment 1

Assignment 1 is worth 15% of your final grade for ACCT 356. Complete and submit this assignment after you finish the readings and learning activities for Lessons 1, 2, and 3. Question 1 (30 marks)

Read the case Western Cabinets – Building a Cabinet or Building a Transformation? Complete the following requirements.

Required:

  1. Reformat the value chain for Western Cabinets into Porter’s value chain format described in Lesson 3 Note 1. Under each primary and secondary activity list the activities as Western Cabinets and identify value creating processes. (15 marks)

  2. Identify the key cost drivers and suggestions for competitive advantage for Western Cabinets. This will include areas of advantage they currently hold and areas where they could create competitive advantage. (15 marks)

Note: When answering this question, you can refer to parts 1 and 3 of the StrongBrit case in Lesson 3 to see how they formatted both the value chain and the key cost drivers/suggestions for competitive advantage.

Question 2 (20 marks)

Assume that in 2016, Dubbledore Industries changed its processes and trained workers to recognize quality problems and fix them before products are finished and shipped to customers. Quality is now at an acceptable level. The selling price for its key product, RBK10, was increased in 2016 to reflect an increased price for direct materials and additional conversion costs needed to deliver a higher quality product. Sales have increased, even with the increase in price, and returns have decreased. Dubbledores’ managers attribute this to higher quality and a price that is still less than their main competitor, Ginko Corporation. Information related to the RBK10 product for the current period and prior period follows:

2015

2016

Units of RBK10 produced and sold

19,000

21,500

Units returned

1,150

550

Net sales in units

17,850

20,950

Selling price

$23

$26

Direct materials (kilograms) used

47,500

51,600

Direct material cost per kilogram

$1.25

$1.35

Manufacturing capacity in units

23,000

23,000

Total conversion costs

$115,000

$149,500

Conversion cost per unit of capacity

$5

$6.5

Selling and customer-service capacity

100 customers

120 customers

Total selling and customer-service costs

$11,000

$12,600

Total selling and customer-service capacity cost per customer

$110

$105

Advertising staff

Total advertising costs

$24,000

$28,000

Advertising cost per employee

$6,000

$7,000

Conversion costs in each year depend on production capacity defined in terms of RBK10 units that can be produced, not the actual units produced. Selling and customer-service costs depend on the number of customers that Dubbledore can support, not the actual number of customers it serves. Dubbledore has 95 customers in 2015 and 115 customers in 2016. At the start of each year, management uses its discretion to determine the number of advertising staff for the year. Advertising staff and its costs have no direct relationship with the quantity of RBK10 units produced and sold or the number of customers who buy RBK10.

Required:

  1. Calculate the operating income of Dubbledore for 2015 and 2016. (4 marks)

  2. Calculate the growth (both revenue and cost effect), price-recovery (both revenue and cost effect), and productivity components that explain the change in operating income from 2015 to 2016. (10 marks)

  3. What type of strategy is Dubbledore pursuing: cost leadership or value leadership? Support your answer using the variances calculated in question 2 (i.e., explain how the variances may demonstrate the company is pursuing a particular strategy). (6 marks)


Question 3 (30 marks)

Lesson 2, Note 5 presents an interactive tool that can help you assess the five forces for any industry. Using this tool and Internet research, analyze the five forces in the high-end car manufacturing industry (such as BMW, Mercedes, Infiniti, Porsche, etc.) to identify how each of Porter’s Five Forces affects the level of competitive intensity in the industry. If you follow the questions in this interactive tool for each force in your analysis, it will help to direct your discussion and draw conclusions. Use APA formatting for any external research. You should provide at least one outside source of information in your analysis.

Required:

  1. In paragraph form, describe how each of the five forces impacts the level of competiveness in the high-end car manufacturing industry. (20 marks)

  2. Complete the following chart to summarize the strength of each force and provide recommendations to luxury car companies to reduce the effect of the force. (10 marks)

Competitive

Force

Strength

1= weak

2= moderately weak

3=moderate

4=moderately strong

5=strong

Suggestions to Help Mitigate Force

Threat of New Entrants

Power of Buyers

Power of Suppliers

Power of Substitutes

Internal Rivalry

Question 4 (20 Marks)

Wondergardens Ltd. operates amusement parks similar to those such as Six Flags, Universal Studios, and Disneyland. Wondergardens' mission is to provide high quality family entertainment that exceeds guests' expectations and creates lifelong memories. To achieve this goal, Wondergardens strives to provide safe, clean, friendly family environments at reasonable prices. In addition to the amusement parks, the company operates a community outreach program. Through volunteerism, it offers educational and recreational programs (e.g., after school programs for children and teenagers, employment-related training for adults) and special events at its facilities.

Wondergardens' president, Roland Coaster, has asked you to lead a team of employees in developing a balanced scorecard for its parks.

REQUIRED:

  1. Describe the type of competitive strategy you believe Wondergardens is pursuing and your reasoning. (4 marks)

  2. Develop a balanced scorecard for Wondergardens including four measures in each of the four perspectives (financial, customer, internal operations, and learning and growth). Make sure your measures are specific, measurable, attainable, and relevant. (16 marks)

Note: This problem is originally from the test bank for Chapter 13 of Horngren, C. T., Datar, S. R., Rajan, M. V., Beaubien, L., & Graham, C. (2016). Cost Accounting: A Managerial Emphasis (7th Cdn. ed.). Toronto: Pearson Canada, but it has been modified to meet the needs of this course.

ACCT 356v8 Assignment 1 Sept. 2016