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(Chapter 1 Discussion Question 9(a)) Controller, Judy Koch, in a recent speech said, I rarely see
a real variable cost or a truly fixed cost. What did she mean? Include in your response an
explanation of the difference in behavior of variable and fixed cost, including an example to
illustrate your explanation. Your initial post should be 200 to 250 words.
In Chapter 3, you were introduced to three types of costs associated with a manufactured product
direct materials, direct labor, and manufacturing overhead. Explain how these costs are
associated with the manufactured product. Why are some of these costs allocated to the product
through costing methods such as job order costing or process costing?
As part of your response, be sure to provide a specific example of a companys manufacturing
costs. Your initial post should be 200-250 words and your example should be properly cited
according to APA as outlined in the Ashford Writing Center.
Explain the similarities and differences between job order costing and process costing. In your
explanation, provide examples of when job order costing and process costing would be most
appropriate. Your initial post should be 200 to 250 words.
Auerbach Enterprises.
North America. The company designs its products with flexibility to accommodate many makes
and models of
automobiles and trucks. The companys two main products are MaxiFlow and Alaska. MaxiFlow
uses a few
complex fabricated parts, but these have been found easy to assemble and test. On the other
hand, Alaska uses
many standard parts but has a complex assembly and testing process. MaxiFlow requires direct
materials costs
which total $135 per unit, while Alaskas direct materials requirements total $110 per unit. Direct
labor costs per
unit are $75 for MaxiFlow and $95 for Alaska.
Auerbach Enterprises uses machine hours as the cost driver to assign overhead costs to the air
conditioners.
The company has used a company-wide predetermined overhead rate in past years, but the new
controller,
Bennie Leon, is considering the use of departmental overhead rates beginning with the next year.
The following planning information is available for the next year for each the four manufacturing
departments
within the company:
Overhead Machine
Costs Hours
Radiator parts fabrication.. $ 80,000 10,000
Radiator assembly, weld, and test. 100,000 20,000
Compressor parts fabrication. 120,000 5,000
Compressor assembly and test.. 180,000 45,000
Total $480,000 80,000
Normally, the air conditioners are produced in batch sizes of 20 at a time. A production batch of
20 units requires
clearly identify your work to demonstrate your understanding of the concept even if you arrive at
the incorrect answer. The calculations should be included as part of your analysis and written
recommendations required for submission.
For Question 5, fully address managements concerns as part of your written analysis and
recommendation using the new or the previous calculations to support your
recommendation/explanation. The written analysis should be supported by at least 2 scholarly
sources, excluding the textbook.
Week 2 Written Assignment should:
Demonstrate graduate level work including appropriate research and critical thinking skills.
Be presented as a written analysis (not a question/answer format).
Incorporate case questions into the overall analysis.
Follow APA formatting guidelines including title page, reference page and in-text citations.
Consists of three to five double-spaced pages of content.
Provide at least 2 scholarly sources, excluding the textbook.
Variable/Absorption Costing.
As you read in Chapter 8, there are arguments (for and against) variable costing and absorption
costing. Select one of these costing methods and explore the various arguments. Determine
whether you are for or against this selected method. Provide evidence from the text to
support your position. Your initial post should be 200-250 words.
Complete Case 5A (Glaser Health Products) in Chapter 5. Glaser Health Products of Ranier
Falls, Georgia, is organized functionally into three divisions: Operations, Sales, and
Administrative. Purchasing, receiving, materials and production control, manufacturing, factory
personnel, inventory stores, and shipping activities are under the control of the vice-president for
operations, George Gottlieb. Advertising, market research, and sales are the responsibility of the
vice-president for sales, Jake Bogan. Accounting, budgeting, the firms computer center, and
general office management are delegated to the corporate controller (Administrative), Charlie
Kaplan. The following cost categories are found in the company as a whole:
(a) Depreciation on factory equipment.
(b) Depreciation on office equipment.
(c) Depreciation on factory building.
(d) Advertising managers salary.
(e) Assembly foremans salary.
(f) Salespersons salaries.
(g) Salespersons travel expenses.
(h) Supplies for the Machining Department.
(i) Advertising supplies used.
(j) Electricity for the Assembly Department.
(k) Lost materials (scrap) in a Machining Department.
(l) Direct labor in the Assembly Department.
administrative costs that are classified as unit-level, batch-level, or product-level costs should be
related to
products. Using preliminary stage cost drivers, explain how individual items of costs will be
traced to activity
groupings.
5. Using primary stage cost drivers, show how the costs should be related to products.
6. Explain why it is necessary to use preliminary stage and primary stage cost drivers.
In this case, management needs assistance in evaluating and classifying costs identified within
Glaser Health Products in order to implement an activity-based costing system. Please address
Questions 1 through 6 at the end of the case. Based on the case questions, you are required to
provide a two to four double-spaced written report providing management with the necessary
guidance in implementing an activity-based costing system. The written report should be
properly formatted according to APA guidelines and demonstrate research and critical thinking
skills. Explanations and recommendations should be supported by at least 3 scholarly sources
from the Ashford Library or other external sources, excluding the textbook.
For Questions 1 through 3, create a chart to classify and identify a cost driver for each of the
costs provided in the text. The chart should be included as an appendix to the written report.
Explanations of the classifications and identifications within the chart should be included within
the written report, supported by references to the appendix.
Questions 4 through 6 should be addressed in fully developed explanations/instructions as part of
your written report. The written analysis should be supported by at least 3 scholarly sources,
excluding the textbook.
Week 3 Written Assignment should:
Demonstrate graduate level work including appropriate research and critical thinking skills.
Be presented as a written analysis (not a question/answer format).
Incorporate case questions into the overall analysis.
Follow APA formatting guidelines including title page, reference page and in-text citations.
Consists of two to four double-spaced pages of content.
Provide at least 3 scholarly sources, excluding the textbook.
Budgeting Comments.
(Exercise 6-13 Revised) Select one of the following quotes from the text to discuss. Clearly
state whether you either agree or disagree with the comment and support your opinion with at
least one scholarly resource. Include in your response an explanation of the major purposes of
budgeting. Your initial post should be 200-250 words.
One major criticism of budgeting is that it is used as a cost reduction tool rather than a cost
control tool. The objective of the budget is to control costs at an efficient level of operation.
There are generally three benefits from allowing employees to participate in developing the
budget: (1) Employees tend to accept the budget as their own plan of action. (2) Participation
tends to increase morale among employees and toward management. (3) Employee cohesiveness
is increased, and productivity will also increase if dictated by the group norm.
Even though budgets are quantitative tools, considerable emotion is connected to budgeting.
The individual in control often sees the budget as a means of getting things done. People being
controlled often have feelings of anxiety because their success and promotion are tied directly to
the budget.
system and explain under what circumstances a standard cost system is most effective. Your
initial post should be 200-250 words.
Select one of the capital investment evaluation methods described in Chapter 10 of your text.
Fully explain the capital evaluation methods strengths and weaknesses. Take a position and
defend the use of your selected method. Be sure to use at least two scholarly sources to support
your position. Your initial post should be 200-250 words.
(Problem 10-41) Grosvenor Industries has designated $1.2 million for capital investment
expenditures during the upcoming year. Its cost of capital is 14 percent. Any unused funds will
earn the cost of capital rate. The following investment opportunities along with their required
investment and estimated net present values have been identified:
Middlehurst House.
Review several of your classmates postings and identify some common non value-added
activities. Respond to at least two of your classmates and provide recommendations that extend
their thinking and inspire reconsideration of the activities listed in the posting.
Due to varying business characteristics, the managerial accounting techniques applied in each
business may differ. For example, a business in the start-up phase may rely heavily upon
budgeting and capital investment techniques; whereas, a business in the mature/maintaining
phase may rely heavily upon cost management and quality control. Ultimately, the techniques
used by management should assist the business in achieving its short-term and long-term goals
through effective decision-making.
For your Final Paper, you will analyze the role of managerial accounting in two parts. Part I will
provide a general overview of managerial accounting. Part II will provide examples of how
managerial accounting theories and principles are applied in the business world. You may find it
helpful to reflect upon your own professional experiences for examples.
Part I (Three to four double-spaced pages)
Present the following:
Definition of managerial accounting
Role of managerial accounting and the management accountant in a business or organization
Ethical issues/concerns for the management accountant
General description of at least three managerial accounting techniques available and their
application within a business or organization
Part II (Four to six double-spaced pages)
Select at least three of the five topics identified below:
Cost Management Techniques
Costing Methods
Capital Investment Decision Techniques
Budgeting
Quality Control
For each topic selected present real world examples of the application of managerial accounting
techniques within a business or organization. Examples may be gathered from your own
professional experiences or from case studies obtained from credible sources (excluding
textbook examples explored in previous weeks). Presentation of each example should include
how a managerial accounting technique was applied in the business or organizations decisionmaking model. Be sure to support your example with calculations when applicable.
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