MA610 Activity 2_06 Activity-Based Costing

Activity 2_06

Instructions

Activity-Based Costing (ABC) has been developed as a methodology for determining the cost of products and services. Activity-Based Management (ABM) has been developed as a basis for the use of financial information for managerial decision-making. This assignment introduced you to the basic concepts and applications of activity analysis and ABC. Utilize the knowledge base you gained from the Lecture and Research Update and your Required Readings to complete this activity.

Research at least two (2) articles that include a description of a company's design and implementation of an ABC system. Good sources include Strategic

Finance, Management Accounting Quarterly, and the Journal of Cost Management.

Then prepare a report on your findings. Your response should include the following.

1.      Company Name

2.      Company Industry

3.      Description of the ABC Application

4.      Assessment of the Benefits of the ABC System for the Company

5.      Discussion of the Implementation of an ABC Project

Your Activity responses should be both grammatically and mechanically correct and formatted in the same fashion as the Activity itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your response and document them in a bibliography using APA style. (100 points) (A 4-page response is required.)

 

MA610 Managerial Accounting Activity 4

Part A

Complete Problem 8-44 (p. 341) on the Lucerne Chocolate Company. (A 1½-page response is required.)

Part B

Case 8-54 (pp. 346-347) is an application to assess your ability to work with flexible budgets. This case provides budgetary information about Hopkins Community Hospital, an outpatient clinic. This is a good example of the use of a flexible budget for analyzing performance at a service sector organization. Use the information in the narrative and the supporting schedules to answer the "Required" questions. (A 1½-page response is required.)

 

MA610 Managerial Accounting Activty 6

Lesson 6: Managerial Decision Making

Activity 6: Pricing & Costing (100 points)

Part A : For this activity, you need to complete Problems 5-56 (pp. 218) and 5-57 (pp. 218). First, however, you need to perform the following before completing the problems. (A 1-page answer is required.)
Part B: Complete text Problems 5-59 (pp. 219), 6-32 (pp. 252), and 6-56 (p. 261). Show all computations. (A 2-page response is required.)

MA610 Managerial Accounting Discussion Question 3-2

Lesson 3: Cost Management Systems – Part II

Go to La-Z-Boy's website() and click on the "Our Furniture Line" tab. Thenclick on the "Recliners" icon. Find and compare the characteristics (size and movement) andoptions (types and color of fabrics) available for the Artie, Atlas, and Baxter recliner models. Inaddition, think about how and where these products may be purchased.

 

a.What type of costing system do you think would work best for La-Z-Boy inmanufacturing recliners? Give three (3) reasons/rationales for using the type of systemyou chose.

b.Do you think that an activity-based costing system could be used for the La-Z-Boyrecliners? Why or why not?

 

MA610 Managerial Accounting Discussion Question 1-2

Lesson 1: Managerial Accounting Basics

a. Complete a solution set for Fundamental Assignment Material Exercise 3-A1, "Activity Analysis" only (p. 106).

 

b. Complete a solution set for Fundamental Assignment Material Exercise 3-A2, "Division of Mixed Costs into Variable and Fixed Components" (p. 106).

 

 

MA610 Managerial Accounting Discussion Question 1-1

Discussion Question 1_01

Instructions

Upon completion of the Required Readings, write a thorough, well-planned narrative answer to the following discussion question. Rely on your Required Readings and the Lecture and Research Update for specific information to answer the discussion question, but turn to your original thoughts when asked to apply, evaluate, analyze, or synthesize the information. Your Discussion Question responses should be both grammatically and mechanically correct and formatted in the same fashion as the questions themselves. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your responses and document them in a bibliography using APA style.

Chapters 2 and 3 introduce you to basic cost behavior, cost-volume relationships, and ways to measure cost behavior. Based on these readings, perform the following. (25 points) (A 1½-page response is required.)

1. Complete a solution set for Fundamental Assignment Material - Exercise 2-A1, "Cost-Volume-Profits and Vending Machines" (p. 66). Be sure to show or explain how you arrive at each answer.
2. Complete the Cognitive Exercises 3-25, 3-26, 3-27, and 3-28 (p. 113).

 3-25 Mixed Costs And The Sales Force 

Wysocki Company Pays Its Sales Force A Fixed Salary Plus A 5 Commission On All Sales Explain Why Sales Force Costs Would Be Considered A Mixed Cost

 3-26 Committed and Discretionary fixed costs in manufacturing

Among the fixed cost of Howarthcompany are depreciation and research and development (R&D).  Using these two costs as examples, explain the difference between committed and discretionary fixed costs.

3-27 Cost Functions and Decision Making

Why is it important that decision makers in corporation know the cost function for producing the companies' products?

3-28 Statistical Analysis and Cost Functions

What advantages does using regression analysis have over the visual-fit method for determining costs functions?

MA610 Stand-Alone Project Case Study in Managerial Accounting

Instructions

Stand-Alone Project: Case Study in Managerial Accounting (250 points)

You should begin working on the Stand-Alone Project early in the course. Each assignment provides a benchmark for completing the Stand-Alone Project in a timely manner while working through the course. You will find this information in the "Stand-Alone Project Benchmark" section of each assignment.

Your Stand-Alone Project responses should be both grammatically and mechanically correct and formatted in the same fashion as the project itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your response and document them in a bibliography using APA style.

Each assignment in this course focuses on a different concept in managerial accounting. These concepts apply whether a firm is involved in manufacturing, merchandising, or service, as well as non-profit organizations. The purpose of this project is to help you understand the use and application of the concepts covered in the course. You are being asked to study an actual firm and to report on its use of the concepts covered in this course. (250 points) (A 20-page response is required.)

Part A	Select a firm that is publicly traded. This ensures you can access the needed data and information from published financial disclosures and articles found in various business journals such as Strategic Finance, Management Accounting Quarterly, etc.
	Note: For large firms, you may want to study only a segment of the firm. If so, ensure that you break down company data for the segment chosen.
	Provide the following background information on the firm you selected. (25 points)
	1.	Firm Name
	2.	Description of the Industry in Which the Firm Operates
	3.	Type of Business or Segment of the Firm (manufacturing, merchandising, service, or non-profit organization)
	4.	General Description of the Firm's Operations, Organization, Products, and Markets
	Note: The rest of the report will deal with the concepts covered in this course. Following are concepts that should be discussed in your report. Although some discussion relating to each concept is expected, please feel free to place a greater emphasis on topics of special interest to you. You may also want to place an emphasis on an area of weakness that may result in corrective action by the firm.
	Conversely, for your benefit, you may want to explore in depth a topic in which the firm has a real strength. Your study may find areas in which the firm needs improvement. A "no" answer for many of the questions would indicate a weakness in the firm's systems. In those instances, you should make recommendations. Provide complete details of the recommendations that you make, including why the recommendation is being made and the benefits to be gained. Each of the following components of your report requires a minimum of two (2) pages. This allows flexibility for you to emphasize your areas of specific interest.
Part B	Cost Behavior and Cost-Volume-Profit (CVP) (Lesson #1): Assess your firm's use of these tools. (45 points)
	1.	Does the firm break down their costs by behavior?
	2.	Do they determine their break-even point?
	3.	Do they use these concepts in the decision-making process? Do you have any recommendations to make?
Part C	ABC, Job Order, and Process Costing and Cost Allocations (Lesson #2): Describe the cost system used by your firm. (45 points)
	1.	If your firm is not using ABC costing, do you think that it is a good candidate to do so? Why or why not?
	2.	Do you have any recommendations to make?
Part D	Budgeting and Variance Analysis (Lesson #4): Describe the budgeting process used by your firm. (45 points)
	1.	Does the process follow the responsibility concept?
	2.	Can you ascertain how employees view the process?
	3.	Is a flexible budget concept used? Do you have any recommendations to make?
Part E	Cost, Profit, and Investment Center (Lesson #5) (45 points)
	1.	Is decision making centralized or decentralized?
	2.	How is performance evaluated?
	3.	Does the firm follow the decision-making and evaluation concepts covered in this course?
	4.	Does the firm use a balanced scorecard?
	5.	Do you have any recommendations to make?
Part F	Decision-Making Policies (Lesson #6): You were given a number of examples showing how relevant financial information was used in decision making. Review the firm's policies regarding these decisions. (45 points)
	1.	Does it follow the concepts covered in this course?
	2.	Do you have any recommendations to make?