Answer Each Question with two paragraphs. And mention at least question No for respected answers Ques 1 Pyramid Printing Company is a printer of magazines and retail inserts. Sally Sound, the company'

Answer Each Question with two paragraphs. And mention at least question No for respected answers 

Ques 1 

Pyramid Printing Company is a printer of magazines and retail inserts. Sally Sound, the company's Controller, initiated an inquiry regarding what has surfaced as a large material variance for the month of April 2017. After inquiring of the production department, it was discovered that many copies of an insert for a major retailers holiday promotion were out of register and discarded. Sally then noted that these were not properly recorded as spoilage to deflect attention from quality issues.

What are the ramifications of reporting the quality-impaired product as a material variance rather than spoilage? Discuss the accuracy of the expenses recorded for the period, as well as any relevant ethical issues.

Que 2

Pyramid Printing Company's Controller, Sally Sound, has been approached by the Production Manager, Darrell Dailey, regarding the cost of quality, given the spoilage experienced in April 2017. Darrell indicates that improvements in the proofing process would be required in order to mitigate the risk of incurring similar, significant quality costs. As the presses are beginning to show their age, the company has to dedicate more resources to quality initiatives, Dailey indicated.

What are the four types of quality costs? Under which quality cost category does the cost of enhancing the proofing process, as described above, fall? For the most effective quality cost benefit, under which category of quality costs should resources be concentrated?

Ques 3

Pyramid Printing Companys Controller, Sally Sound, and the Production Manager, Darrell Dailey, continue to discuss potential operational improvements. Darrell recently attended a seminar on Just-in-Time (JIT) inventory management methods. He mentions to Sally that colleagues who also attended the seminar recently implemented JIT and realized tremendous benefits in minimizing inventory investment. Sally, we may even be able to sublet the warehouse space if we are able to curtail inventory investment, Darrell offered.

Pyramid Printing now has an MRP planning system. Compare and contrast JIT and MRP.

• Name an advantage and a disadvantage of JIT and MRP.
• How would a conversion from MRP to JIT be accomplished?

Que 4 

Pyramid Printing Company's Controller, Sally Sound, and the Production Manager, Darrell Dailey, once again discuss potential operational improvements. After successfully implementing JIT and subletting the warehouse space, Pyramid was flush with cash. As a result, Darrell inquired whether it was time to purchase another press. Henry Hines, Pyramid Printings Sales Manager, suggested that the market be tested to ensure the press would be full in terms of capacity prior to use.

Sally and Darrell then discuss their choice of decision model; Sally prefers net present value, and Darrell prefers internal rate of return. Consider the use of these models. Which model is better for use? Are there circumstances one must consider regarding the outcomes of these two decision models? Do these models both deliver the same level of accuracy for decision making?

Ques 5

Pyramid Printing Company's Controller, Sally Sound, is contemplating the restructuring of a management incentive program. Currently, managers are compensated based on achieving levels of operating income. However, recent implementations of JIT and new investments have resulted in improved performance.

Consider the calculations of Return on Investment, Residual Income, Economic Value Added, and Return on Sales. Which do you believe to be a superior method of measuring performance, and why? Select the measure which you believe would be appropriate for Pyramid and justify your selection.