ACC 202 Managerial Accounting Full Course

ACC 202 Managerial Accounting Full Course

Managerial Accounting

ACC 202 Discussion 1 Latest-Trident

Managerial Accounting in the 21st Century

Discuss the role of the managerial accountant in today’s business environment. How has the role changed and evolved over time?

Do research on the Internet and show the reference for the information. Remember to respond to a colleague’s posting also.

Grading Criteria:

Try to add information not previously discussed by others. Please provide factual information (not merely opinions) backed up by details or examples. Your comments should be in your own words and include references.

ACC 202 Discussion 2 Latest-Trident

Activity-Based Costing–Cost Allocations

Cost allocations have to make sense. What drives consumption of costs? What are drivers and how do they help in the allocation process?

Do research on the Internet and show the reference for the information. Do not forget to respond to a colleague’s posting also.

Professor’s Note: In addition to searching the Internet for text related to this discussion, watch the following videos (click on the following link to access these videos) and post your comments.

http://www.youtube.com/watch?v=mRt5YMVGOxg Video 1: Activity Based Costing (Cost Hierarchy Categories, Cost Allocation Bases, ABC System Setup, Etc.)

http://www.youtube.com/watch?v=PcjxRe4EsuY Video 2: Activity Based Costing Step by Step

Grading Criteria:

Try to add information not previously discussed by others. Provide factual information (not merely opinions) backed up by details or examples. Your comments should be in your own words and include references.

Variance analysis receives some criticism as a performance measure. What about other measures such as ROI and EVA?

Do research on the Internet and show the reference for the information. Remember to respond to a colleague’s posting also.

ACC 202 Discussion 3 Latest-Trident

Performance Measurement: ROI and EVA

Variance analysis receives some criticism as a performance measure. What about other measures such as ROI and EVA?

Do research on the Internet and show the reference for the information. Remember to respond to a colleague’s posting also.

Professor’s Note: Variance analysis compares actual performance to budgeted performance in the areas of material, labor, and overheads. If the results of a business unit show all positive variances, should the manager be rewarded for (excellent) performance? A simple counter argument can be – what if the manager had padded his business unit’s budget?

In addition to searching the Internet for text related to this discussion, watch the following YouTube videos (click on the following links to access these videos) and post your comments.

http://www.youtube.com/watch?v=M8igsXklfb4 Video 1: Performance Management & Evaluation

http://www.youtube.com/watch?v=omUoKnhuqvY Video 2: Return on Investment – ROI

http://www.youtube.com/watch?v=4UMUJkIPA-4&feature=related Video 3: Economic Value Added – EVA

Grading Criteria:

Try to add information not previously discussed by others. Provide factual information (not merely opinions) backed up by details or examples. Your comments should be in your own words and include references.

ACC 202 Discussion 4 Latest-Trident

Transfer Pricing

Transfer pricing refers to setting prices between related parties. There are many reasons to skew such prices when allowed. Discuss this issue from a managerial perspective.

Do research on the Internet and show the reference for the information. Remember to respond to a colleague’s posting also.

Professor’s Note: In addition to searching the Internet for information on transfer pricing, please visit YouTube.Com and search for the following two video clips:

http://www.youtube.com/watch?v=qbvHGEmqbhs Video 1: Transfer Pricing 1 – White Board Tutorial

http://www.youtube.com/watch?v=RYgMK3fHmSY Video 2: Transfer Pricing 2 – White Board Tutorial

Grading Criteria:

Try to add information not previously discussed by others. Provide factual information (not merely opinions) backed up by details or examples. Your comments should be in your own words and include references.

ACC 202 Discussion 5 Latest-Trident

What Is Important?

Given the readings and assignments in the course, identify and briefly discuss two important concepts applicable to the business decision-making process.

ACC 202 Module 1 Case Latest-Trident

Module 1 – Case

INTRODUCTION TO MANAGERIAL ACCOUNTING

Case Assignment

This first case is about reading, researching, and familiarizing yourself with the purpose and importance of management accounting in today’s organization. Managerial accounting is both about understanding concepts and the ability to read and analyze financial information for internal use. Accordingly, this course is a mixture of reading, research, computations, and analysis.

Reading the background material for a basic understanding and then doing additional research to elaborate on the ideas is the approach for this first case. Discuss and analyze the difference between managerial and financial accounting. Pay particular attention to:

How is managerial accounting different from financial accounting?

Comment on the different needs and use of financial information for internal purposes.

The managerial accounting profession and its role in today’s business environment. How has it changed over time?

Comment on the Certified Management Accountant (CMA) designation.

Assignment Expectations

It is important to answer the questions above. The discussion should be three to five pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

When your paper is done, upload it to the appropriate dropbox.

ACC 202 Module 1 SLP Latest-Trident

Module 1 – SLP

INTRODUCTION TO MANAGERIAL ACCOUNTING

Your specific SLP assignment for this Module is to select an organization for your project. You may consider any of these organizations as long as you have enough access to that organization to respond to the assignments. [Note: you will not be asked to reveal any proprietary or confidential information in your reports. Most of your reports will be based on your observations.]

You need only one organization. You may choose an organization among three categories below.

The business for which you work.

A business organization for which a close friend or relative works and to which you have access.

Any not-for-profit-oriented organization that has financial information available.

Select your organization. Next, based on accounting knowledge of the Case Assignment, answer questions below.

Write a short description of that organization and your relationship to it.

In your organization, describe how managerial accounting is working for planning and controlling.

Indicate any specific roles of managerial accounting compared with other organizations.

SLP Assignment Expectations

It is important to answer the questions above. The discussion should be two to four pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

When your paper is done, upload it to the appropriate droxpbox.

ACC 202 Module 2 Case Latest-Trident

Module 2 – Case

RELEVANT INFORMATION FOR DECISION MAKING

Assignment Overview

Relevant Cost Case Behemoth Motors Corp.

Behemoth Motors Corp. (BMC) is a major manufacturer of automobiles in the United States. BMC has decided to include a Global Positioning System navigator (GPSN) in all of its Sports Utility Vehicles (SUV) beginning with the 2016 model year. These models are just now being delivered and the GPSN units are manufactured in the Detroit BMC facility. Currently and for the foreseeable future, BMC will need 8,000 GPSNs per month. The total manufacturing cost of the GSPN is $425 per unit calculated as follows:

Item	Cost per unit
Direct materials (purchased locally)	$165
Direct labor (6 hours @ $28 per hour)	$168
Factory Floor Space Charges (16,000 sq. ft. at $2.50 per sq. ft. per month allocated over 8,000 units per month)	$5
Supervisory labor (monthly cost of $56,000 allocated over 8,000 units per month)	$7
General company overhead ($640,000 per month assigned to GPSN allocated over 8,000 units per month)	$80
Total Unit Cost	$425

BMC experiences a high level of quality control over these units with only 2% of total production failing quality control testing. 98% of all units manufactured are installed in SUVs.

Wally Wizard, the GPSN manager, has been approached by Far East Enterprises, Ltd (FEE) who has offered to outsource these units for MBC. FEE is a three-year-old electronic manufacturing company located in China and has experienced outstanding growth during that three-year period. FEE has offered to manufacture and deliver to Detroit 8,000 GPSN units at a unit cost of $400 beginning on Jan. 1, 2016. FEE asks for a two-year contract.

Under the existing arrangement, the direct materials are all purchased locally under month-to-month contracts. There are no future obligations under these contracts.

There are 100 direct labor employees involved in this process. These employees can be laid off but if they are, BMC must pay a penalty of $66,000 per year to the employees union. This penalty will continue for 4 years.

There are 10 supervisors, each earning $6,000 per month, assigned to the project.

If the product is outsourced, all of these supervisors can be assigned to other supervisory positions within BMC. If the product is outsourced, half of the factory floor space can be used for storage for materials that are currently stored in rented storage facilities. These rented facilities currently cost BMC $5,000 per month. There is no alternative use for the remaining factory floor space. The current $2.50 per sq. ft. charge is based on the overall BMC factory costs.

General company overhead is first assigned to operating units on the basis of total product produced and then further to produced units on a per unit basis. If the product is outsourced, this overhead will be reassigned to other operating divisions although total corporate overhead incurred will remain unchanged.

You have determined the following additional facts. The units manufactured by FEE will have the same quality as those manufactured by BMC and the delivery schedule will have the same reliability as that of BMC.

Case Assignment

Make a recommendation to Wally Wizard in a 3- to 4-page paper. Be sure to support your recommendation with the decision-making process outlined in the background information.

Assignment Expectations

It is important to answer the questions above. The discussion should be three to four pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

When your paper is done, upload it to the appropriate dropbox.

ACC 202 Module 2 SLP Latest-Trident

Module 2 – SLP

RELEVANT INFORMATION FOR DECISION MAKING

Review the processes in your company and identify a decision that has recently been made or will be made in the near future in your organization. Next, identify at least two relevant and two non-relevant costs for this decision. Your report should include:

The name and nature of the organization

The activity and time period you used

The inputs you used

Your results

Any implications from your results

SLP Assignment Expectations

It is important to answer the questions above. The discussion should be two to three pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

When your paper is done, upload it to the appropriate dropbox.

ACC 202 Module 3 Case Latest-Trident

Module 3 – Case

VARIABLE AND FIXED COSTS

Case Assignment

Managerial accounting emphasizes short-term profit analysis, so the income statement is very important. Consequently, we will examine and discuss income statements in this Case.

Keep the analysis from the SLP in mind when addressing the questions below.

Explain the main differences between the absorption and contribution (behavioral, variable) income statements. Will net income always be the same under the two approaches? If not, explain the difference.

Comment specifically on why companies feel the need to create yet another income statement in a different format. What information can the company glean from this approach which is helpful as a tool in the decision-making process?

Explain situations in which break-even analysis can be a useful tool. Provide a specific example.

The submission should be 2 to 4 pages and needs to include answers to all the questions listed above. Include references in APA format.

Assignment Expectations

It is important to answer the questions above. The discussion should be two to four pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

When your paper is done, upload it to the appropriate dropbox.

ACC 202 Module 3 SLP Latest-Trident

Module 3 – SLP

VARIABLE AND FIXED COSTS

Below find production and sales information for Herrestad Company. We will use this same company for Module 4.

Product Information

Beginning inventory 0

Units produced $10,000

Units sold $8,000

Selling price per unit $250

Variable costs per unit

Direct material $100

Direct labor $50

Variable overhead $30

Variable selling and administrative $10

Fixed costs

Fixed manufacturing overhead $200,000

Fixed selling and administrative $100,000

Herrestad company

Absorption income statement for the period ending Dec. 31, 2015

Sales $2,000,000

Costs of goods sold $1,600,000

Gross profit (margin) $400,000

Selling and administrative expenses $180,000

Net income $220,000

Required: Prepare a contribution margin (behavioral, variable) income statement for Herrestad Company, compare net operating profit from a contribution margin income statement with net income from an absorption income statement, and explain why this difference happens. Prepare a second version assuming the selling price per unit increases to $270 per unit.

Use the original information to:

Determine the number of units the company must sell to break even for the year.

Compute break-even, assuming direct materials cost increase from $100 to $130, but all information remains the same.

The submission should be 2 to 4 pages and needs to include answers to all the questions listed above. Show computations, discuss the results, and include references in APA format.

SLP Assignment Expectations

It is important to answer the questions above. The discussion should be two to four pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

When your paper is done, upload it to the appropriate dropbox.

ACC 202 Module 4 Case Latest-Trident

Module 4 – Case

ALLOCATING FIXED COSTS AND BUDGETING

Case Assignment

This case has two separate parts.

Part I

How can activity-based management and activity-based costing (ABC) benefit an organization? Specifically, address the following points.

How does ABC differ from other allocation methods?

Describe the main characteristics of ABC.

What type of companies tends to benefit from ABC?

Comment on a company (research Internet) that has implemented ABC.

What type of company is it?

Was it successful?

Part II

Please answer the following questions.

What are the general benefits of preparing the budget?

Discuss how the budget is likely to be used for the control function.

Variance analysis is a traditional tool used for planning and control. Comment on advantages and disadvantages of using this approach for performance evaluations.

Do you have any suggestions for complementary or alternative performance measures?

The submission should be 3 to 5 pages and need to include answers to all the questions listed above. Include references in APA format.

Assignment Expectations

It is important to answer the questions above. The discussion should be three to five pages and written in a clear and concise manner. Support your discussion with references in APA format. You are encouraged to use Excel or other compatible spreadsheet when computations are involved.

When your paper is done, upload it to the appropriate dropbox.

ACC 202 Module 4 SLP Latest-Trident

Module 4 – SLP

ALLOCATING FIXED COSTS AND BUDGETING

This SLP has two parts.

Part I

Herrestad Company does produce and sell two products and the details below will be used to prepare a segmented income statement (showing the income for each product and the total) for the company. Use ABC to allocate all fixed costs to the two products.

Background information

Total Prod A Prod B

Beginning inventory 0

Units produced 10,000 2,500 7,500

Units sold 8,000 2,000 6,000

Selling price per unit $255 480 180

Variable costs per unit

Direct material 100 280 40

Direct labor 60 60 60

Variable overhead 25 40 20

Variable selling and admin. exp. 10 13 9

Fixed costs

Fixed manufacturing overhead 200,000

Fixed selling and administrative 100,000

Production runs (not $) 100 65 35

Number of sales reps (not $) 25 15 10

Here are the first few lines of the segmented income statement to help you get started. Complete the statement in good format and make sure you allocate the fixed costs to the two products. When done, comment on the information and the relative profitability of the two products.

Herrestad Company

Segmented Income Statement for the period ending Dec. 31, 2015

A B Total

Sales $960,000 $1,080,000 $2,040,000

Variable costs:

Direct material 560,000 240,000 800,000

Part II

Differential analysis involves knowing which costs are relevant, i.e. future costs that vary among alternatives. It is important to know what information to use and not just how to execute the analysis.

Herrestad Company receives an offer to make a new product, called C, for a new customer. The customer wants to buy 1,000 units. Product C has the same cost structure as product B with three exceptions. The new customer is only willing to pay $150 per unit, direct materials costs will decrease by $12 per unit and Herrestad does not have to incur any variable selling and administrative expenses.

Make a list of the expenses and amounts that are relevant for this decision. How much will the sale of this product contribute to the profitability of Herrestad?

What if the company only pays $140 per unit? How does this change the contribution towards profitability?

If you were the manager, would you accept this order? What considerations, other than financial would enter into your decision?

This Is a Signature Assignment Expectation for ACC202 Module 4 SLP

There are 2 specific learning outcomes:

apply business theories, models, and concepts to guide analysis of problems and situations

utilize data-driven analysis in making business decisions.

In this SLP assignment for Module 4 our emphasis will be on understanding the concept of relevant costs. You will be summarizing all of what you learned the in the Cases, SLPs, and Discussions.

The grading rubric has been developed to measure student success in meeting the ACC202 Module 4 SLP expectations related to applying your knowledge of relevant costs in the budget process.

SLP Assignment Expectations

Demonstrate familiarity with the concept of relevant costs.

Write 2-4 pages, showing computations and discussing the results.

List supporting references and cite sources.

Use appropriate writing style (organization, grammar, & spelling – see Writing Guidelines).