Trident University ACC202 – Managerial Accounting all module 1-5All cases and slpmodule 1
caseThis
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 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.
Modular
Case ExpectationsIt 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.module 1
SLPYour
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 which has financial information available.
Select
your organization. Next, based on accounting knowledge of case assignment,
answer questions below.
Write a short description of
that organization and your relationship to it.
In your organization, how
managerial accounting is working for planning and controlling.
Indicate any specific roles
of managerial accounting compared with other organization.
Modular
SLP ExpectationsIt 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.module 2
case studyRelevant
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 2013 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, 2013. 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 Task: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.module 2
SLPReview
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, please
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
Modular
SLP ExpectationsIt 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.Mosule 3module 3
case studyManagerial
accounting emphasizes short-term profit analysis, so the income statement is
very important. Consequently, we’ll 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 gleam 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 need to include answers to all the
questions listed above. Include references in APA format.Modular
Case ExpectationsIt 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.module 3
SLPBelow
find production and sales information for Herrestad Company. We will use this
same company for the remaining SLPs.

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, 2011

Sales

$2,000,000

Cost 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 need to include answers to all the questions listed
above. Show computations, discuss the results and include references in APA
format.module 4
case studyThis case
has two separate parts.Part IHow 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 IIThe below
concepts are all applied by many business in an attempt to be more efficient
and reduce costs. Create a table describing at least three of the concepts
below and how implementation may benefit an organization.
Lean manufacturing
Just-in-time
Theory of constraints
Total quality control
Value chain
The
submission should be 3 to 5 pages and need to include answers to all the
questions listed above. Include references in APA format.Modular
Case ExpectationsIt 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.module 4
SLPHerrestad
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, 2011

A

B

Total

Sales

$960,000

$1,080,000

$2,040,000

Variable
costs:

Direct
material

560,000

240,000

800,000

The
submission should be 2 to 4 pages and need to include answers to all the
questions listed above. Show computations, discuss the results and include
references in APA format.module 5
case studyThe
submission should be 2 to 4 pages and need to include answers to all the
questions listed above. Include references in APA format.This case
has two parts.Part IWe have
learned about the basic ideas of managerial accounting during the first two
modules. Let’s try to apply this knowledge and review a .trident.edu/Presentation.aspx?course=3&term=116&presentation=139451″>sample budget for a charter school. This budget
is prepared assuming three levels of student enrollment (66, 100 and 120).
Revenue and expenses projections are shown in the budget. Operating assumptions
are shown in “Schedule A”.The first
requirement of this case relates to the planning function of a budget. Comment
on the following relating to the charter school budget:-(1) Is
this a static or flexible budget?(2) What
is total revenue (excluding grants) per student?(3) What
are total expenses per student?(4) Do
all expenses seem necessary?(5) Is
this school viable? How many students does the school need to break even (show
your calculations with analysis and state your assumptions for break-even)?(Note:
For break even analysis – Ignore revenue received as “Grants” and “Startup
Costs” (Schedule A).(6) What
are the general benefits of preparing this budget?(7)
Discuss how this budget is likely to be used for the control function.Part IIThe
second requirement of this case relates to the control function of a budget.
Use the background material and Internet to answer the following questions.(1)
Variance analysis is a traditional tool used for planning and control. Comment
on advantages and disadvantages of using this approach for performance
evaluations.(2) Do
you have any suggestions for complementary or alternative performance measures?module 5
SLPDifferential
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 with 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 for ACC202 Module 5 SLP.There are
2 specific learning outcomes: 1) apply business theories, models, and concepts
to guide analysis of problems and situations and 2) utilize data driven
analysis in making business decisions.In this
SLP assignment for Module 5 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 TDs.The
grading rubric below has been developed to measure student success in meeting
the ACC202 Module 5 SLP expectations related to applying your knowledge of
relevant costs in the budget process.

Assignment
Expectation

Weak
(1)

Marginal
(2)

Adequate
(3)

Strong
(4)

Organization
10%

Demonstrates
the ability to analyze content logically, concisely, and in an appropriate
manner to understanding of relevant costs.

There
is no logical sequence of information. Wording is rambling and unfocused.

Paper
does not follow a logical sequence.

Paper
follows a logical sequence. There are some minor problems with sub-classification
and/or results are not clear.

Paper
follows a logical sequence with a correct computation and results. Each cost
relates to others in a carefully organized framework.

Demonstrates
the ability to support a central point or viewpoint throughout the paper.

Insufficient
elaboration and/or support (e.g., computation, each activity) in the paper.

Limited
elaboration and/or support in the paper.

Support
with some specific details and elaboration in the paper.

Support
through both specific details and elaboration apparent in the paper.

Content
70%

Demonstrates
familiarity with the concept of relevant costs.

The
purpose is not identified, is unclear, or inappropriate in the paper.

Purpose
is occasionally unclear in the paper.

Clear
purpose, but not consistently sustained throughout the paper.

Clear
purpose sustained throughout the paper.

Demonstrates
the ability to gather and sort relevant costs in the budget process.

Does
not have a grasp of information and appropriate data. Topic is poorly
created. Supporting explanations are absent or vague. Trite ideas and/or
unclear wording reflect a lack of understanding of topic.

Seems
uncomfortable with information and data. Topic is evident but with little or
no elaboration.

Seems
comfortable with the accounting information and data. Topic is evident with
some supporting details.

Demonstrates
full knowledge of the topic with explanation and elaboration. The topic is
well developed, effectively supported, and appropriate for the assignment.
Critical thinking is clearly and creatively expressed. Data choices are well
thought out.

Delivery
20%

Demonstrates
the ability to use appropriate word choice and grammar in the paper.

There are
many sentences with grammatical errors. Some sentences are
incomplete/halting, and/or vocabulary is somewhat limited or inappropriate.

There
are a few sentences that are complete and grammatical. Word choice is not
always appropriate for presentation.

Sentences
are generally complete and grammatical, and they flow together easily. With a
few exceptions, words are chosen for their precise meaning.

All
sentences are complete and grammatical, and they flow together easily. Words
are chosen for their precise meaning. Word choice illustrates grasp of
content and enhances explanation.

Demonstrates
the ability to make an effective explanation outline that is free from bias.

Words
chosen for an explanation are inappropriate and exhibits bias. Some readers
may be confused.

Words
chosen for the paper are free from bias with one or two minor exceptions.

Words
have no apparent bias. There is some inappropriate explanation.

Words
and explanation are completely free from bias.

Post your
assignment to CourseNet.SLP 5
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).