redmond management association annual public relations luncheon B u s i n e s s F i n a n c e

redmond management association annual public relations luncheon B u s i n e s s F i n a n c e

ACCCB/543: Managerial Accounting And Legal Aspects Of Business Comp 2

Part #1

Write a response to the following in a minimum of 500 words:

The type of product a company produces affects the type of accounting system needed to determine product cost.

The 2 most common types of costing systems are job-order costing and process costing.

Compare and contrast job-order and process costing systems. How can events in a job-order costing system affect financial statements? How can events in a process costing system affect financial statements? Provide specific examples for each type.

Part #2

Write a response to the following in a minimum of 500 words:

Budgeting is a tool used by management for performing the functions of planning, coordinating, and controlling operations of a business. Our textbook, Managing Accounting Concepts, describes 2 main types of budgeting: static budgets and flexible budgets.

Differentiate between the 2 types of budgets and include the following in your response:

  • Provide an example of the type of business or company that would benefit from using a flexible budget.
  • Provide support for your business selection and include the advantage for using a flexible budget over a static budget.

Part #3

Read the scenario located in the “Analyze, Think, Communicate” section 12-5 of Ch. 12, “Job-Order, Process, and Hybrid Costing Systems” of Fundamental Managerial Accounting Concepts. This scenario involves an altercation between Rene Alverez and Bill Sawyer and requires you to weigh in with calculations and comments on the matter.

Compute the equivalent cost per unit, assuming the ending inventory is considered to be 40% complete.

Compute the equivalent cost per unit, assuming the ending inventory is considered to be 60% complete.

Write a 350-word summary of your calculations and findings. Comment on Mr. Sawyer’s motives for establishing the percentage of completion at 60% rather than 40%.

Part #4 – A & B

Net Present Value and Internal Rate of Return

Read the scenario located in “Problems – Series A,” section 8-19A of Ch. 8, “Performance Evaluation, “ of Fundamentals of Managerial Accounting Concepts. This scenario puts you in charge of preparing a budget for the Redmond Management Association annual public relations luncheon.

A:

Use Excel® – showing all work and formulas – to complete the following:

  • Prepare a flexible budget.
  • Compute the sales volume variance and the variable cost volume variances based on a comparison between the master budget and the flexible budget.
  • Compute flexible budget variances by comparing the flexible budget with the actual results.

B:

Mr. Snow was extremely upset with the budget deficit. He immediately called you, the treasurer, to complain about the budget variance for the meal cost. He told you that the added dessert caused the meal cost to be $4,810 ($25,110 – $20,300) over budget. He added, “I could expect a couple hundred dollars one way or the other, but several thousand is totally unacceptable. At the next budget meeting of the budget committee, I want you to explain what happened.”

Create a 6- to 8-slide presentation for the budget committee meeting showing your findings and recommendations from your computations.

Complete the following in your presentation:

  • Summarize the results of the sales volume and variable cost volume variances computations based on the comparison between the master budget and the flexible budget.
  • Summarize the results of the flexible budget variances computations based on the comparison between the flexible budget and the actual results.
  • Justify the favorable or unfavorable budget variances.
  • Since this is a not-for-profit organization, address why anyone should be concerned with meeting the budget.
  • Make recommendations for what can be done differently to stay on budget for future luncheons. Provide specific examples to support your recommendations.
  • Include speaker notes.