Managerial Accounting Overview BA 115 Management Accounting Measures‚ analyzes‚ and reports financial and non financial information non-financial that helps managers make decisions to fulfill the goals of an organization organization. Activity IFRS/IAS-based Financial Reports Generally‚ cannot be used for the day-to-day d t d goals of the managers. Financial vs Managerial Acctg MANAGERIAL Primary users Focus and emphasis Rules of measurement and reporting Level of detail Managers
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Chapter 4 Problems 1. Growth and financing (LO4) Philip Morris is excited because sales for his clothing company are expected to double from $500‚000 to $1‚000‚000 next year. Philip notes that net assets (Assets Liabilities) will remain at 50 percent of Sales. His clothing firm will enjoy a 9 percent return on total sales. He will start the year with $100‚000 in the bank and is already bragging about the two Mercedes he will buy and the European vacation he will take. Does his optimistic outlook
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CASE STUDY SCOPING – CRADDOCK CUP Background: The Craddock Cup is a regional soccer tournament held by the Craddock Youth Soccer League (CYSL) and managed by Joe Rivaldo every year. The cup brings in around 32 premier high school soccer teams (both boys and girls teams) from throughout the region to compete. Each year the cup is considered a great success by players‚ their families and the local community and is now widely considered as the premier tournament for high school soccer players. Over
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increasing advertising costs and artist costs‚ there is a need to focus on the controllables within the equation. 2) To calculate the break-even point we must find a way to separate the paying ticket holders and comp ticket holders. * The contribution per paying customer is $40.08 ($26.99+1.91+7.66+3.52) - $3.049
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Even though “ABC has emerged as a tremendously useful guide to management action that can translate directly into higher profit” (Kaplan and Copper1991) It is not fair to say that Absorption costing is no longer relevant. In fact ABC does not conform to GAAP (generally accepted accounting principles). Absorption costing is conventionally used for external reports‚ filings and other statutory compliances; where all of the manufacturing costs and only manufacturing costs are needed. For example auditors
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Madonna and Child with Saints Mark and Peter When I visited The Walters Art Museum for the first time‚ I was extremely captivated and pleased. I quickly recognized themes and characteristics of the Baroque time period from my knowledge of it learned in class. After walking around the museum and looking at many Italian works and all the work from the time period we have covered in class‚ I was drawn to several pieces. I am always impressed by paintings and all the little details put into it. Since
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sold for Waltham Motors Division to break even? Answer Q1: Breakeven Fixed costs $260‚000.00 = ---------------------------------- = ---------------------- = 13‚326 units number of units Unit contribution margin $19.51 UCM (Unit Contribution margin) = USP (Unit Selling Price) UVC (Unit Variable Costs) = = $48.00 - $28.49 = $19.51 USP = Sales / Units sold = $864‚000.00/18‚000 = $48.00 UVC = Total variable costs / Units produced = $512
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distinguish the variable costs and fixed costs‚ we now can construct the contribution margin Income Statement for SDS at its March level‚ assuming 205 hours for Intercompany usage-Question 3 Income Statement Revenues: -Intracompany $82‚000 -Commercial 110‚400 Total Revenues 192‚400 Variable Expenses: -Power 1‚697 -Hourly Personnel 8‚147 Subtotal Variable Expenses 9‚844 Contribution Margin 182‚556 Fixed Expenses: -Rent 8‚000 -Custodial
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2) Under what conditions should a buying division be forced to buy from an internal supplier? Under what conditions should a selling division be forced to sell to an internal division‚ rather than to outside customer? (20m) Frequently buying division will be required to buy from within the company as long as the selling division can provide goods of comparable quality and prices. Based on the situation‚ for example‚ suppose the window division can acquire the same component from within the company
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1 Exercises for Session 7: We solve a selection of these exercises in class. Exercise 1 Taken from Midterm Fall Term 2011 AIM: Traditional versus ABC accounting QUESTION V. 19 POINTS Stellar Stairs Co. designs and builds factory-made premium wooden stairs for homes. The manufactured stair components (spindles‚ risers‚ hangers‚ hand rails) permit installation of stairs of varying lengths and widths. All are made of white oak wood. The company’s budgeted manufacturing overhead costs for 2012 are
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