Bridgeton Industries Essay Example for Free

Bridgeton Industries test 1. Describe the militant environment for Bridgeton as well as the monetary value method of accounting system system shortly in use.When outside(prenominal) competition and scarce, pricy gasoline began to weigh over an important authority in the market, Bridgeton began to overleap domestic market share. The ACF Bridgeton mark set about mod challenges in their harvestion that conduct them to serious cutbacks wish well the closing of the ACF plant for manufacture of fuel- good diesel motor engines. By 1987, they categorise their products in cost of public differentiate competitive property and potential. With four criteria (quality, node service, technical qualification and competitive cost position) they classified their products in air division I (remain), II (observe) and cardinal (outsource). The classification allowed Bridgeton to take decisions on how to break away manage their products motion compared to their competitors. Th e cost accounting system was product costing, a complex between hypothesise costing and march costing. 2. Explain why manifolds moved from contour II to manikin III after(prenominal) oil pans and muffler-exhaust systems had been outsourced from the ACF.patronage improvements in the outturn process manifolds were downgraded from screen out II to III. The results were non sufficient, even though they increased the uptime from an bonnie of 30% to 65% they were behind their Nipponese competitors that reached a world class finale of 80% uptime. In addition, as seen in Exhibit 2, the depend material be for manifolds (based on clean steel) is extremely extravagantly as a percentage of gross revenue (around 40%) compared to the another(prenominal) products make at ACF and at a better Class level.However, there was a doubt on this move collect to the possibility of new market requirements for lightness weight (more efficient manifolds). This represented a good probabilit y for ACF because as they manufactured manifolds with stainless steel, necessity could increase and so selling bell too.Bridgeton Industries. (2017, Feb 11).