Question

In: Finance

A garments factory has 60 employees.Out of these 60 employees, 20% i-e 12 workers are involved...

A garments factory has 60 employees.Out of these 60 employees, 20% i-e 12 workers are involved in aparticular project. The remaining is not directly involved in thatproject. Out of the given budget of the project, the factory isfacilitating and giving 80% of their total employees who are 48 innumber and giving extra benefits to them. In connection with theproject, the factory is working on a shipment. It has been observedat the end of delivering the shipment that the entire project givesless profit than expected. The actual cost on that particularproject is more than the estimated cost. Identify which factor(s) causes the increase in cost and why thefactory management is unable to attain the expected profit out ofthe given budget? Also suggest measures for the factory managementthat how could they control the cost on that particular project?

Solutions

Expert Solution

Factors which caused the increase in cost and factory was unable to attain the expected profit out of given budget are as follows-

A. There was not proper allocation of resources on this project because this was an important project for the company and the number of people who were allocated to this project as well as the number of total budget allocated to this project was less, so there should have been an adequate allocation of resources.

B.therw should have been proper control and management in respect to this budget and the responsibility must have been fixed.

C.the control procedures needed to be accurately followed and there should have been regular check in order to know the deviation of actual from standard

D. There should have been a proper monitoring of this project and continuous motivation of the employees by actively allocating the resources

there should have been a proactive management on the part of the company so that the cost should have been properly managed by setting out the budgeted cost and comparing with the actual cost so that the variation should have been known in advance and they should have been fixed continuously in stages in order to attain the desired objective.

Hence, the company should have been proactively manage the cost of the product so that the control related to the project should have been adequately ascertained

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

A factory has 60% of newly hired workers quit within a year. The company hires 2...
A factory has 60% of newly hired workers quit within a year. The company hires 2 workers at the same time. Suppose each workers' decisions to leave or stay are independent. a) What is the probability of both workers will work there for more than one year? b) What is the probability of at least one will work there for more than one year?
A random sample of 20 workers in a factory were asked to report the age of...
A random sample of 20 workers in a factory were asked to report the age of their car and how many miles the vehicle had on it. A computer printout resulted in the following information. Variable Coef SE Coef t-ratio Prob Constant 7288.54 6591 1.11 <0.2826 Age 11630.6 1249 9.31 <0.0001 R sq = 82% R sq adj = 81.1% s = 19280 Find the LSRL A new worker starts next week and we know that his car is 7...
1. ABC toy factory has 10,000 workers. The salaries of the workers are based on the...
1. ABC toy factory has 10,000 workers. The salaries of the workers are based on the amount of toys they can make in each month. A random sample of 100 workers and the number of toys they have made in a week is selected and the results are tabulated below. Toys Pieces Number of workers 101 − 150 6 151 − 200 13 201 − 250 15 251 − 300 24 301 − 350 25 351 − 400 9 401...
1. ABC toy factory has 10,000 workers. The salaries of the workers are based on the...
1. ABC toy factory has 10,000 workers. The salaries of the workers are based on the amount of toys they can make in each month. A random sample of 100 workers and the number of toys they have made in a week is selected and the results are tabulated below. Toys Pieces 101 − 150 151 − 200 201 − 250 251 − 300 301 − 350 351 − 400 401 − 450 Number of workers 6 13 15 24...
Factory Overhead Budget Service Department 1 handles personnel matters. The firm anticipates having 12 factory employees...
Factory Overhead Budget Service Department 1 handles personnel matters. The firm anticipates having 12 factory employees and expects the variable costs to operate the personnel department to average $1,000 per employee. The cost of this department is allocated to other departments on the assumption that there will be three employees in the maintenance department, five employees in the molding department, and four employees in the smoothing department. The personnel department’s fixed costs are estimated to be $15,000 and will be...
The following information is for the pension plan for the employees of Sheridan, Inc. 12/31/20 12/31/21...
The following information is for the pension plan for the employees of Sheridan, Inc. 12/31/20 12/31/21 Accumulated benefit obligation $2,760,000 $3,720,000 Projected benefit obligation 3,060,000 3,960,000 Fair value of plan assets 3,090,000 3,590,000 AOCI - Net (gain) or loss (385,000) (440,000) Settlement rate 7% 7% Expected rate of return 6% 5% Sheridan estimates that the average remaining service life is 15 years. Sheridan's contribution was $488,000 in 2021 and benefits paid were $240,000. Calculate the interest cost for 2021. Interest...
Suppose that China has 60 workers. 4 chinese workers can produce a motorcycle and 6 chinese...
Suppose that China has 60 workers. 4 chinese workers can produce a motorcycle and 6 chinese workers can produce a car. So china can produce a maximum of 15 motorcycles and a maximum of 10 cars. America also has 60 workers. 3 American workers can produce a motorcycle and 4 American workers can produce a car. So america can produce a maximum of 20 motorcycles and a maximum of 15 cars. Which country has an absolute advantage in producing motorcycles?...
Consider the data. xi 3 12 6 20 14 yi 65 40 60 15 20 The...
Consider the data. xi 3 12 6 20 14 yi 65 40 60 15 20 The estimated regression equation for these data is ŷ = 75.75 − 3.25x. (a) Compute SSE, SST, and SSR using equations SSE = Σ(yi − ŷi)2, SST = Σ(yi − y)2, and SSR = Σ(ŷi − y)2. SSE = SST = SSR = (b) Compute the coefficient of determination r2. (Round your answer to three decimal places.) r2 = Comment on the goodness of fit....
Technology has led to the rise of extreme workers who are on the job 60 hours...
Technology has led to the rise of extreme workers who are on the job 60 hours a week or more. One of the reasons cited by employees about why they work long hours was that they loved their job because it was stimulating. Suppose that the survey of 1564 workaholics included 786 men and 778 women, and 707 men and 638 women loved their job because it is stimulating. At the 0.05 level of significance, you would like to determine...
A large Factory space has an average occupancy of 45 people (only male workers in this...
A large Factory space has an average occupancy of 45 people (only male workers in this space) they are doing light bench work. The average light level is 1.5W/ft2 of recessed, vented to return air fluorescent fixtures. Other production equipment create a total heat gain of 3 W/ft2. Compute the total sensible and total latent heat gain for the space. The floor area is 7500 ft2. For the sensible heat gain, estimate the radiative and convective portions for each type...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT