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functions performed by B&L Ireland (including its contact lens
operations) and (2) to assess the relative level of efficiency
achieved by the employees in its sunglass assembly operations and
to recommend work standards to improve that level of efficiency.
B&L Ireland maintained a management accounting system for
its sunglass assembly operations that was separate from the
accounting system for its contact lens operations. The account-
ing system for B&L Ireland's sunglass assembly operations was
based upon standard cost accounting under which standard costs
were established for materials, labor, and overheads, and the
actual costs for those items were compared against those standard
costs to determine any variances. B&L Ireland prepared monthly
reports based on its accounting system in order to aid it in
monitoring its sunglass assembly operations. B&L Ireland's cost
accounting system was indicative of a manufacturing company and
not a distribution operation.
B&L Hong Kong's sunglass assembly operations utilized
between 22 and 31 employees, including the following supervisors
and managers who were responsible for its sunglass assembly
operations: (1) A managing director who had overall respon-
sibility for B&L Hong Kong's operations (including operations
other than the assembly of sunglasses), (2) a production manager
who was responsible for the overall production of sunglasses,
including quality control, process improvement, manpower alloca-
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