Questions from Cost Management

Q: Leather Works is a family-owned maker of leather travel bags

Leather Works is a family-owned maker of leather travel bags and briefcases located in the northeastern part of the United States. Foreign competition has forced its owner, Heather Gray, to explore ne...

Q: Ardmore, Inc., manufactures heating and air conditioning units in its

Ardmore, Inc., manufactures heating and air conditioning units in its six divisions. One division, the Components Division, produces electronic components that can be used by the other five. All the c...

Q: Oriole, Inc., owns a number of food service companies.

Oriole, Inc., owns a number of food service companies. Two divisions are the Coffee Division and the Donut Shop Division. The Coffee Division purchases and roasts coffee beans for sale to supermarkets...

Q: Corning Company has a decentralized organization with a divisional structure. Two

Corning Company has a decentralized organization with a divisional structure. Two of these divisions are the Appliance Division and the Manufactured Housing Division. Each divisional manager is evalua...

Q: Greg Peterson has recently been appointed vice president of operations for Webster

Greg Peterson has recently been appointed vice president of operations for Webster Corporation. Greg has a manufacturing background and previously served as operations manager of Webster’s Tractor Div...

Q: Renslen, Inc., a truck manufacturing conglomerate, has recently purchased

Renslen, Inc., a truck manufacturing conglomerate, has recently purchased two divisions: Meyers Service Company and Wellington Products, Inc. Meyers provides maintenance service on large truck cabs fo...

Q: Jump Start Company ( JSC), a subsidiary of Mason Industries,

Jump Start Company ( JSC), a subsidiary of Mason Industries, manufactures go-carts and other recreational vehicles. Family recreational centers that feature go-cart tracks along with miniature golf, b...

Q: Grate Care Company specializes in producing products for personal grooming. The

Grate Care Company specializes in producing products for personal grooming. The company operates six divisions, including the Hair Products Division. Each division is treated as an investment center....

Q: Coral Seas Jewelry Company makes and sells costume jewelry. For the

Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects sales of $15.9 million and cost of goods sold of $8.75 million. Advertising is a key part of Coral S...

Q: Phil DaStands is the athletic director at Rarelly Wynn University. The

Phil DaStands is the athletic director at Rarelly Wynn University. The university experienced a decline in athletic event attendance over the past several years, resulting in decreasing Athletic Depar...