Bridgestone Case Study

3378 Words 14 Pages
Register to read the introduction… With this in mind, Sheryl explained that Cost-Volume-Profit (CVP) analysis would be useful to Thomas after he gathered some basic information about costs, revenues, and units of service. She explained that CVP is a fundamental management accounting tool that is useful for planning, control, and decision making. It explores important relationships between costs, volume or activity levels, and …show more content…
Possibilities include employee assistance programs (EAP) to deal with alcohol or other drug disorders or behavioral health counseling or other kinds of programs. According to the United States Department of Health and Human Services, mental illness causes more days of work loss and work impairment than many other chronic condition, such as diabetes, asthma, and arthritis.1 Approximately 217 million days of work are lost annually due to productivity decline related to mental illness and substance abuse disorders, costing Unites States employers $17 billion each …show more content…
What is the financial impact if Bridgestone’s fixed costs increase by 1% during the first quarter?
9. What are your overall recommendations for Bridgestone’s management regarding the use of CVP analysis?
10. As accountants, it is common to focus on quantitative tools such as CVP analysis to increase the profitability of a business. But it is important for accountants to think outside of the box to identify avenues of increasing profitability. What suggestions could you provide to assist Bridgestone in increasing profitability?

Other requirements: 1. You may modify the exhibits (e.g., adding columns) to help answer the questions, especially the “what if” analyses required in part 8. However, you need to rename those worksheets and highlight the additional analyses you’ve done. You also need to interpret the results in words as to provide actual answers to the questions. 2. You are required to submit the Word file with all the answers. You may also submit the Excel file if applicable. If you choose to submit both files, please create a folder titled “ACC320-CRN#-Last Name-First Name” and upload the zipped folder on Moodle. If you only submit a word file, please name the word file exactly the same way and upload on

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