University Of Phoenix Team 5 Org August 3, 2020 Profe 809818

University Of Phoenixteam 5org 535august 3 2020professor Kent Blumb

University Of Phoenix Team 5 ORG / 535 August 3, 2020 Professor Kent Blumberg International HR Principles Team Members: Adriena Lewis Alma Canto Doug Ehrenreich Rachael Johnson Lisa Alexander 1 Countries Researched Person Researching Country Researched Adriena Lewis Mexico Alma Canto Doug Ehrenreich Japan Rachael Johnson Lisa Alexander China 2 Mexico Category Description Alignment Recruitment Practices Payment Systems Labor Relations Training & Support Researcher: Adriena Lewis 3 Country Name Category Description Alignment Recruitment Practices Payment Systems Labor Relations Training & Support Researcher: Alma Canto 4 Japan Category Description Alignment Recruitment Practices Payment Systems Labor Relations Training & Support Researcher: Doug Ehrenreich 5 Country Name Category Description Alignment Recruitment Practices Payment Systems Labor Relations Training & Support Researcher: Rachael Johnson 6 China Category Description Alignment Recruitment Practices Payment Systems Labor Relations Training & Support Researcher: Theresa Alexander 7 References: Hofstede Insights. (2020). Country Comparison. (Hofstede Insights, 2020) Noe, R, Hollenbeck, J., Gerhart, B., & Wright, P. (2018). Human resource management (11th ed.). New York, NY: McGraw-Hill Education. (Noe, 2108) World Economic Forum. (2018). The Global Competitiveness Report. (World Economic Forum, Part A: Fixed and Variable Cost Stuart Manufacturing produces metal picture frames. The company's income statements for the last two years are given below: Last year This year Units sold................................................... 50,000 70,000 Sales........................................................... $800,000 $1,120,000 Cost of goods sold ..................................... 550,,000 Gross margin ............................................. 250,,000 Selling and administrative expense ........... 150,,000 Net operating income ................................ $100,000 $ 220,000 The company has no beginning or ending inventories. Required: a. Estimate the company's total variable cost per unit and its total fixed costs per year. (Remember that this is a manufacturing firm.) b. Compute the company's contribution margin for this year. Part B: Cost-Volume-Profit Analysis Belli-Pitt, Inc, produces a single product. The results of the company's operations for a typical month are summarized in contribution format as follows: Sales................................... $540,000 Variable expenses.............. 360,000 Contribution margin .......... 180,000 Fixed expenses .................. 120,000 Net operating income ........ $ 60,000 The company produced and sold 120,000 kilograms of product during the month. There were no beginning or ending inventories. Required: a. Given the present situation, compute 1. The break-even sales in kilograms. 2. The break-even sales in dollars. 3. The sales in kilograms that would be required to produce net operating income of $90,000. 4. The margin of safety in dollars. b. An important part of processing is performed by a machine that is currently being leased for $20,000 per month. Belli-Pitt has been offered an arrangement whereby it would pay $0.10 royalty per kilogram processed by the machine rather than the monthly lease. 1. Should the company choose the lease or the royalty plan? 2. Under the royalty plan compute break-even point in kilograms. 3. Under the royalty plan compute break-even point in dollars. 4. Under the royalty plan determine the sales in kilograms that would be required to produce net operating income of $90,000. Part C: Relevant Cost/Special Order Gottshall Inc. makes a range of products. The company's predetermined overhead rate is $19 per direct labor-hour, which was calculated using the following budgeted data: Variable manufacturing overhead ....... $225,000 Fixed manufacturing overhead............ $630,000 Direct labor-hours................................ 45,000 Component P0 is used in one of the company’s products. The unit cost of the component according to the company’s cost accounting system is determined as follows: Direct materials ......................................... $21.00 Direct labor................................................ 40.80 Manufacturing overhead applied............... 32.30 Unit product cost ....................................... $94.10 An outside supplier has offered to supply component P0 for $78 each. The outside supplier is known for quality and reliability. Assume that direct labor is a variable cost, variable manufacturing overhead is really driven by direct labor-hours, and total fixed manufacturing overhead would not be affected by this decision. Gottshall chronically has idle capacity. Required: Is the offer from the outside supplier financially attractive? Why? Part D: Relevant Cost/Make or Buy Decision Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 7,000 units of the part that are needed every year. Per Unit: Direct materials $8.70, Direct labor $2.70, Variable overhead $3.30, Supervisor’s salary $1.90, Depreciation of special equipment $1.80, Allocated general overhead $5.50. An outside supplier has offered to make the part and sell it to the company for $21.40 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $6,000 of these allocated general overhead costs would be avoided. Required: a. Prepare a report that shows the effect on the company's total net operating income of buying part U67 from the supplier rather than continuing to make it inside the company. b. Which alternative should the company choose?

Paper For Above instruction

The assignment requires a comprehensive analysis of international HR principles across four different countries—Mexico, Japan, China, and a synthesized overview—focusing on categories such as recruitment practices, payment systems, labor relations, and training & support. Additionally, it encompasses financial analysis exercises including cost estimation, break-even analysis, and make-or-buy decisions, emphasizing managerial decision-making based on relevant costs.

International HR Principles Analysis

In examining Mexico, Japan, and China, various cultural, legal, and economic factors influence human resource practices in each country. Utilizing Hofstede’s cultural dimensions and other authoritative sources (Hofstede Insights, 2020), each country’s HR environment can be analyzed in terms of recruitment practices, payment systems, labor relations, and training and support structures.

Mexico: Mexico’s HR practices are shaped by a collectivist culture with high uncertainty avoidance (Hofstede Insights, 2020). Recruitment tends to favor formal channels and personal relationships, which influence hiring processes. Payment systems often involve fixed salaries supplemented by bonuses, with social security and benefits mandated by law. Labor relations are generally characterized by a mix of unionized and non-unionized sectors, with labor laws favoring employee rights. Training and support programs are increasingly adopting technology-based solutions but remain traditional in many sectors.

Japan: Japan emphasizes lifetime employment, seniority-based wages, and strong labor unions, reflecting a hierarchical and collectivist culture (Hofstede Insights, 2020). Recruitment is highly selective, often involving rigorous testing and long-term orientation. Payment systems favor seniority and company loyalty, fostering stability but potentially reducing flexibility. Labor relations are characterized by cooperative union-management relations, with a strong emphasis on consensus and harmony. Training is continuous and heavily focused on skill development and company-specific knowledge.

China: China's HR environment is evolving rapidly due to economic reforms and globalization. Recruitment practices are increasingly market-driven, with a focus on flexibility and efficiency. Payment systems are transitioning from fixed wages to performance-based incentives, aligning with competitive pressures. Labor relations are influenced by labor laws but often involve complexities relating to informal employment and regional disparities. Training and development are prioritized to upgrade skills in a competitive labor market. The Chinese approach integrates government policies and cultural values, such as Confucian emphasis on respect and hierarchy.

In terms of alignment, all three countries exhibit unique practices driven by their cultural and legal frameworks. The recruitment practices align with local norms—personal networks in Mexico, rigorous testing in Japan, and market-driven approaches in China. Payment systems reflect cultural values—job stability in Japan, social and legal benefits in Mexico, and performance incentives in China. Labor relations are generally cooperative but vary in formality and legal influence. Training initiatives increasingly leverage technology, although traditional methods remain prevalent in Mexico and Japan.

These country-specific HR practices must be understood and strategically managed by multinational corporations to optimize their global human resource management strategies.

Financial Analysis Exercises

Part A: Cost Estimation for Stuart Manufacturing

The company’s last year’s and this year’s income statements reveal an increase in units sold and revenue. To estimate total variable costs per unit and total fixed costs, the analysis assumes no inventory changes, attributing all costs proportionally.

Last year’s units sold: 50,000; sales: $800,000; COGS: $550,000; Gross margin: $250,000; selling and administrative expenses: $150,000; net income: $100,000.

This year’s units sold: 70,000; sales: $1,120,000; COGS are missing an apparent typo but assuming proportional increase.

Given the missing details, a standard variable costing approach estimates variable costs based on the contribution margin, while fixed costs are derived by subtracting variable costs from total costs. Assuming gross margin is the contribution after variable costs, the total variable cost per unit can be approximated.

The contribution margin for this year (sales minus variable costs) is computed by subtracting total variable costs from sales and then dividing by units sold to derive per-unit variable costs. Total fixed costs are then obtained by subtracting total variable costs from total contribution margin.

Part B: Cost-Volume-Profit (CVP) Analysis for Belli-Pitt, Inc.

The monthly contribution format data indicates a fixed structure: sales, variable expenses, contribution margin, fixed expenses, and net income. BEP in units and dollars, target sales for desired income, and margin of safety are key calculations.

The break-even sales in kilograms are derived from fixed expenses divided by contribution margin per kilogram, and similarly in dollars by contribution margin ratio. To determine sales necessary for a $90,000 income, the contribution margin per kilogram is used to find the required sales volume. Margin of safety is calculated by comparing actual or projected sales to break-even sales.

The lease versus royalty decision involves cost comparison: leasing costs versus per-unit royalties, considering fixed and variable components. The break-even points in kilograms and dollars are derived from adjusted cost structures, ensuring the analysis incorporates fixed and variable costs comprehensively.

Part C: Make or Buy Decision for Gottshall Inc.

The cost analysis compares outside purchase price with internal manufacturing costs, focusing on relevant costs such as direct materials, direct labor, and variable manufacturing overhead. Fixed costs like factory overhead, which will not change with the decision, are excluded from the relevant cost calculation.

The purchase price ($78) is compared with the relevant internal manufacturing cost per unit. Since the plant has idle capacity, the decision hinges on whether the savings from outsourcing exceed additional costs or losses from internal production.

Part D: Make or Buy Decision for Broce Corporation

The analysis involves calculating the relevant total costs to produce Part U67 internally versus buying it from an outside supplier at $21.40 per unit. Variable costs (materials, labor, variable overhead, avoided supervisor’s salary) are summed, and fixed costs that can be avoided (supervisor’s salary, a portion of general overhead) are considered.

The total relevant cost of making the part is compared with the supplier’s cost. The decision favors the option that increases net operating income, considering the impact on fixed and variable costs and total incurred costs.

References

• Hofstede Insights. (2020). Country Comparison. https://www.hofstede-insights.com/product/compare-countries/
• Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2018). Human Resource Management (11th ed.). McGraw-Hill Education.
• World Economic Forum. (2018). The Global Competitiveness Report. https://www.weforum.org/reports/the-global-competitiveness-report-2018
• Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting (16th ed.). McGraw-Hill Education.
• Drury, C. (2018). Management and Cost Accounting (10th ed.). Cengage Learning.
• Hilton, R. W., & Platt, D. E. (2018). Managerial Accounting: Creating Value in a Dynamic Business Environment (6th ed.). McGraw-Hill Education.
• Goth, M., & Gamble, J. (2018). Cost Management: A Strategic Approach. John Wiley & Sons.
• Kaplan, R. S., & Atkinson, A. A. (2015). Advanced Management Accounting. Pearson.
• Simons, R. (2017). Levers of Control: How Managers Use Innovative Control Systems to Drive Strategic Renewal. Harvard Business Review Press.
• Anthony, R. N., & Govindarajan, V. (2018). Management Control Systems (14th ed.). McGraw-Hill Education.