Question:
(Value chart) Lin Products manufactures special-order office cubicle systems. Production time is two days, but the average cycle time for any order is three weeks. The company president has asked you, as the new controller, to discuss missed delivery dates. Prepare an oral presentation for the executive officers in which you address the following:
a. Possible causes of the problem.
b. How a value chart could be used to address the problem.
(Cost drivers) For each of the following cost pools in a temporary employment agency, identify a cost driver and explain why it is appropriate.
a. Accounts receivable department
b. Payroll department
c. Advertising cost
d. Information technology
e. Utilities
f. Property taxes and insurance on office building