What are the different ways to describe cost behavior? What process is used to estimate future costs? How are engineered estimates, account analysis, and two-point methods used to estimate cost functions?

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The Cost Function

  • Q1: What are the different ways to describe cost behavior?
  • Q2: What process is used to estimate future costs?
  • Q3: How are engineered estimates, account analysis, and two-point methods used to estimate cost functions?
  • Q4: How does a scatter plot assist with categorizing a cost?
  • Q5: How is regression analysis used to estimate a cost function?
  • Q6: How are cost estimates used in decision

 

What is the process of strategic management and decision making? What types of control systems do managers use? What is the role of accounting information in strategic management?

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The Role of Accounting Information

Q1 – What is the process of strategic management and decision making?

Q2 – What types of control systems do managers use?

Q3 – What is the role of accounting information in strategic management?

Q4 – What information is relevant for decision making?

Q5 – How does business risk affect management decision making?

Q6 – How do biases affect management decision making?

Q7 – How can managers make higher-quality decisions?

Q8 – What is ethical decision making, and why is it important?

 

Differentiate between Variable and Absorption costing with a suitable numerical example and explain what would be the changes in Net Operating Income under both the costing methods.

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Assignment Question(s):

Q1. Differentiate between Variable and Absorption costing with a suitable numerical example and explain what would be the changes in Net Operating Income under both the costing methods.

Answer

.

Q2. ABC prepares budgets for the quarter ending June 30. Sales in units: April 20,000, May 50,000, June 30,000, July 25,000. Selling price is SR 10 per unit. , inventory in March 31, is 4,000 units. Desired inventory is 20% of the next month sales.

Required: Prepare sales and production budgets.

 

Q3. The Net Present Value Method uses the concept of Time Value of Money when evaluating Capital Budgeting Decisions.

Required: Explain criteria to accept or reject investment projects based on net present value method.

Q4. ABC Company has a car and it considers whether to sell it directly at a price of SR 100,000 or to make some modifications costing SR 10,000 to sell it at a price of SR 120,000.

Required: using the differential analysis which alternative do you recommend about the car.

Answer:

  Alternative 1

Sell without modifications

 Alternative 2

Sell after modifications

 Differential
Revenues      
Modification costs      
Differential income      

Q5. Use the following information about the calendar-year cash flows of MacArthur Company to prepare a statement of cash flows (direct method) and a schedule of noncash investing and financing activities.

 

Cash and cash equivalents, beginning-year balance $18,000
Cash and cash equivalents, year-end balance 78,750
Cash payments for merchandise inventory 75,750
Cash paid for store equipment 15,750
Cash borrowed on three-month note payable 22,500
Cash dividends paid 12,000
Cash paid for salaries 39,000
Cash payments for other operating expenses 48,000
Cash received from customers 220,500
Cash interest received 8,250

 

What is the zakat due in case of watering without cost? What is the zakat due in case of watering with cost?

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Assignment Question(s):   (15.0 Marks) Each Questions Carries 5 Marks)

  1. A Zakat giver has an agricultural production at a market value of SAR 300,000. The zakat giver has no accounting books to count the actual production expenses. Assume the zakat receptacle reached the Nisab.

 Required:

  1. What is the zakat due in case of watering without cost?
  2. What is the zakat due in case of watering with cost?

A Zakat giver has a commercial building that generated an annual income of SAR 200,000 and incurred actual expenses of SAR 50,000. The book value of the building is SAR 75,000 while its market value is SAR 150,000.

Required: What is the zakat due?

A Single Taxpayer In US Has The Following Information:

Item US$
Gross Income 500,000
Exclusions 50,000
Deductions For Gross Income 100,000
Itemized Deductions 5,000
Standard Deduction 6,100
Personal Exemptions 3,900
Dependency Exemptions 3,900
Prepayments 75,000

Required: Compute The Tax Due Assuming the Tax Rate Is 20%.

 

 

 

 

 

Create a name and establish a location for the business. Construct a mission statement for the business. Decide on the type of cookie you want to make and sell.

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Unit 2 Accounting Project

Cookie Business
In this project, you will be opening your own specialty cookie company to see how product costing methods and changes in production affect business decisions. You will be creating a series of reports and analyzing the results using the template provided to guide you through the project.

The learning objectives of this project are as follows:

Gain an understanding of product costing (direct materials, direct labor, and overhead).
Review job order costing.
Review process costing.
Make business decisions based on analyzing accounting data.
You will prepare a four- to five-page written report (including spreadsheets) with at least two scholarly sources using the Unit II Project Template. Your report will provide the following information:

Introduction
Part 1: Establish a cookie business selling only one type of specialty cookie with two employees making the cookies.

Create a name and establish a location for the business.
Construct a mission statement for the business.
Decide on the type of cookie you want to make and sell.

Part 2: Develop costing and sales information for 1,000 cookies.

Estimate and explain the cost per cookie based on job order costing (manufacturing overhead is 30% of direct labor costs). Prepare a job order cost sheet by researching and identifying the top five ingredients and their estimated costs as your direct materials. Research and identify the cost of wages for your two employees as your direct labor. It typically takes two days to make 1,000 cookies.
Estimate and explain the cost per cookie based on process costing with 40% conversion costs. Identify the top three processes you feel are needed to make the cookies and prepare a production cost sheet for one of those processes.
Estimate and explain the sales price you plan to set per cookie based on the cost data.

Part 3: Compare and contrast the costing methods used in this project, including which you believe provides the most useful information as a manager.

Part 4: Discuss what will happen to revenue if the number of the cookies sold increases or decreases.

Conclusion and Recommendations
Use the Unit II Cookie Project Spreadsheet Templates for your job order, and process costing spreadsheets to be embedded in your case study document.

Apply accounting concepts and standards to the creation of accounting information and reports. Analyze accounting information used to make strategic business decisions.

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Unit 7 Accounting Final

Cookie Business Final Project
Now that your cookie business is well underway, you are going to use the knowledge that you have gained in this course to evaluate the financial information for the company. You will be creating a series of reports and analyzing the results using the templates provided to guide you through the project.

The learning objectives of this project are as follows:

Apply accounting concepts and standards to the creation of accounting information and reports.
Analyze accounting information used to make strategic business decisions.
Apply ethical behavior to accounting-related situations.
Make business decisions based on analyzing accounting data.

Using the Unit VII Final Project Template, prepare a four- to five-page written report (including spreadsheets) with at least three scholarly sources. Your report will provide the following information:

Introduction
Part 1: Based on the data presented in the Unit VII Spreadsheet Template in Excel (CM Breakeven tab):

Calculate the contribution margin (CM) for each of the three products sold at the cookie business.
Calculate the weighted average CM.
Calculate the breakeven point.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results based on your calculations as far as which type of cookie you think is the most profitable, which has the highest CM, etc.

Part 2: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Full Variable tab), complete the calculations listed below.

Calculate the value of ending inventory under full or absorption costing.
Calculate the value of ending inventory under variable costing.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results, and comment on which method you think is more helpful to managers and why.

Part 3: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Special Order tab), calculate the net increase or decrease in profit if they take the special order.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss the results and comment on if you think the cookie business should take on this special order of cookies for a wedding. Business has been slow the last few months, and the offer is less than the usual selling price for the cookies.

As part of your discussion, include both quantitative (based on the numbers) and qualitative (not based on numbers) factors that would go into the decision to take on the special order.

Part 4: Based on the data presented in the Unit VII Spreadsheet Template in Excel (IRR tab), calculate the internal rate of return (IRR) for the new equipment purchase.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Note: the PV Annuity table is provided for you. Discuss if you think the cookie business should accept or reject the purchase of the new equipment and why.

Additional information has come to your attention regarding the equipment purchase. One of the partner’s brother owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.

Part 5: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Cash Budget tab), calculate the cash receipts for the first quarter of this year.

Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the way cash is collected if the company needs $150,000 per month for expenses.

Part 6: Based on the data presented in the Unit VII Spreadsheet Template in Excel (Variances tab), complete the following calculations.

Calculate the material variances.
Calculate the labor variances.
Complete your calculations by filling in the highlighted cells, and embed a copy of the completed spreadsheet into this report. Discuss your observations about the variances and ways to plan to improve any of the variances.

Conclusion and Recommendations
Summarize the key observations that you have made about the cookie business based on the calculations you have performed, and present any future recommendations.

Be sure to use APA formatting throughout, and reach out to the Writing Center or the Library for assistance with research, writing, and formatting. Include at least two resources from the CSU Online Library in your report

Compare and contrast basic U.S. and international financial accounting standards. Explain how key international factors affect business reporting. Identify key compliance and regulatory requirements.

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Unit 4 Accounting Project

International versus U.S. Accounting Standards
For this assignment, you will research and compare international and U.S. accounting standards. This will enable you to see how the different reporting methods affect business and how product costs are affected by international business.

The learning objectives of this report are as follows:

Compare and contrast basic U.S. and international financial accounting standards.
Explain how key international factors affect business reporting.
Identify key compliance and regulatory requirements.

Using the Unit IV Research Report Template, prepare a four- to five-page written report with at least three scholarly sources covering the items listed below.

Introduction
Part 1: Select financial statements for two related (e.g., computer manufactures, pharmaceutical companies, cell phone companies, etc.) businesses; one that uses U.S. accounting reporting and the other that uses international accounting reporting. Identify the following items:

Provide the name, location, and accounting standards used for each business.
Compare and contrast three major differences you see in the way the financial data is presented on the financial statements.
Identify which set of financial statements you think is the easiest to understand and provides you with most accurate cost data as a manager. (Do not forget to look at the notes to the financial statements also.)

Part 2: Analyze and discuss three international factors you think would affect the cost of the products made at the companies you selected and why.

Part 3: Discuss any compliance and/or regulatory issues you think would be involved in the companies you have selected as they relate to the cost of the products made. For example, are there strict regulations on product pricing, tariffs imposed on raw materials needed to make the products, or strict regulations on the wages paid to workers?

Conclusion and Recommendations
Be sure to use APA formatting throughout

Describe how this new self-regulation process would affect you as an auditor working for a large public accounting firm today. Discuss the strengths and weaknesses of self-regulation in the accounting profession as a result of the historical events you described.

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DISCUSSION QUESTION

Visit the Library (access in the course home area) to research the accounting system of self-regulation. Describe at least one major historical event in the business world that occurred in the past 20 years and discuss how this affected today’s accounting system of self-regulation.

Describe the legislation that altered the self-regulation process of the accounting profession. Additionally, describe how an auditor’s personal and professional experience could influence the workplace culture.

Describe the regulation process for accounting firms that audit (a) public companies and (b) nonpublic companies.

Describe how this new self-regulation process would affect you as an auditor working for a large public accounting firm today. Discuss the strengths and weaknesses of self-regulation in the accounting profession as a result of the historical events you described.

GAAP gives more leeway in that if a company has the ability and the positive intent to refinance a current liability then it can list it as a long term liability. Discuss the pros and cons of each approach. Choose the method you think is preferable and justify your choice.

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DISCUSSION ESSAY

IFRS has strict rules that if a liability is a current liability at the end of the accounting period then it is a current liability on the balance sheet. GAAP gives more leeway in that if a company has the ability and the positive intent to refinance a current liability then it can list it as a long term liability. Discuss the pros and cons of each approach. Choose the method you think is preferable and justify your choice.

 

Respond to 2 classmates:

Classmate 1(destinee): IFRS offers a clear cut definition of current liabilities that leaves little room for leeway and misinterpretation. One of the benefits of this approach is the ability to mitigate dishonesty or manipulation since the liabilities are classified the same way consistently. One of the downsides of IFRS regulations would be a disadvantage to an honest company that wants to frame their finances in a specific way. If the company is taking this action honestly and appropriately, adhering to IFRS standards may cost them. Alternatively, with GAAP there is more room for interpretation and discussion. A benefit of GAAP would be allowing a business to present their finances in a manner that is beneficial to their goals and demands. Though GAAP does not guarantee a positive outcome, with more room to position the statements in a specific manner there is more of a risk for misrepresentation or dishonesty. Overall, GAAP seems to be the better option. While accounting courses and practices aim to promote transparency and honesty, adhering to GAAP in the United States, the practices in place are strong and well researched.

Classmate 2( bryan): When it comes to the IFRS, they are very strict when it comes to liabilities with little leeway on how they are interpreted. Virtually all liabilities that fall under IFRS are treated as current liabilities while lacking a detailed classification of whether the liability is current or long-term. GAAP is more lenient by proving corporations classifications on making disclosures on their finances, to where it can be beneficial to their wants and needs. The benefit the IFRS has over GAAP is that it is commonly used by most nations’ internationally accepted accounting standards. On the other hand, the practice of GAAP is exclusively in the United States. The disadvantage for US companies operating under GAAP is that they must also perform under IFRS when they are doing business in international markets, making it more difficult. An advantage IFRS has over GAAP is that it allows depreciation to be capitalized, whereas for GAAP that is not the case. A disadvantage of IRFS has on, particularly for smaller companies is increased costs where there are limited resources to implement changes, thus having to rely on bringing in accountants for help. Overall, IFRS seems to be the preferable option. While GAAP is more beneficial for US companies being more prescriptive, again it only applies in the United States to domestic organizations. Meanwhile, IFRS offers greater comparability in financial statements and flexibility for companies operating in different nations, and it also helps investors choosing on their investments.

Analyze the impact of lease concessions or lease modifications on the reporting of your chosen company’s leases. Compare and contrast the impact that ASU 2016-02, Leases will have on the financial ratios of your chosen company.

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Week 8 Assignment – Impact of Financial Accounting Standards Board (FASB) Accounting Standards Update ASU 2016-02, Leases

Overview
Accounting is the language of business, and it is not a dead language! The FASB is responsible for ensuring that all relevant and material financial information is properly codified in the Generally Accepted Accounting Principles (GAAP).The use of off-balance-sheet financing distorts the real liabilities of companies and is a topic of long-lived concern. ASU 2016-02, Leases, is the most recent action of the FASB to address this issue. The standard is currently effective for public business entities, employee benefit plans, and not-for-profit conduit bond obligors and delayed for private companies and private not-for-profits.

Instructions
1. For this assignment, you will select a company of your choice or use one of the companies you researched in your weekly discussions to write a 3–4-page report in which you:

    • Summarize the impact of ASU 2016-02, Leases on the recording of leases.
    • Analyze the impact of the standard on the reporting of your chosen company’s leases.
    • Analyze the impact of lease concessions or lease modifications on the reporting of your chosen company’s leases.
    • Compare and contrast the impact that ASU 2016-02, Leases will have on the financial ratios of your chosen company.
    • Use at least four quality academic resources in this assignment. Note: Wikipedia and similar websites do not qualify as academic resources.

2. This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.The specific course learning outcomes associated with this assignment are:

    • Determine the impact of accounting standards on the recording of leases for a given company including an analysis of its effect on financial tools.