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Management Accounting

Budgeting in a Small Business

Go to the following website (see below) and read the article about budgeting in a small business. The article talks about six basic steps to a better business budget. Write a paragraph about whether you agree or disagree with these steps. Be sure to address each individual step in your response.

The Cost to Produce One Tire and an Order

XYZ Tire Company has gotten an order for its manufacturing business segment of 25,000 tires. Using job order costing, figure out the total unit cost of manufacturing a tire and the total order. Rubber in one tire: 8 pounds of rubber Cost per pound of rubber: $1.50 Steel used in tire: 2 pounds of steel Cost per pound

Period and Product Costs

1. Why do managers need to understand product and period costs? In your explanation, please also briefly describe product and period costs, along with their differences. 2. As a manager in a business, you have to make many decisions on how budgeting takes place. If you had a choice in a company where you are a manager, would yo

Comparing Financial and Managerial Accounting

1. Can you think of any direct examples of where contribution margin can be used in a business? 2. The main purpose of managerial accounting is to guide management in future decisions with their company. There are many aspects of managerial accounting but if a business follows all of these aspects it will help them maximize t

Contribution Margin, Gross Profit, Managerial Accounting

1. What are the similarities between contribution margin and gross profit. 2. Steven started ZZ Tire Company 10 years ago. The company started as an installer and seller of tires. The company has now expanded to the point where they now manufacture tires in China to supply the retail stores. They have retail sales of over $10 M

Definition and basic concepts of managerial accounting

1. What is managerial accounting and what are the differences between managerial accounting and financial accounting? 2. What are the main functions of managerial accounting? 3. Why do management accountants should understand their company strategy? 4. Why is managerial accounting relevant to business majors and their f

When to record a loss contingency

What are the rules concerning contingencies if they are discovered during the first period of the year? Should they be disclosed on the first quarter's financial statements?

Ethics of GAAP

You are a recently-hired accountant at Greenwood Company, a small corporation that does a seasonal business of selling snow removal equipment, with most of its sales to retailers occurring in the last two quarters of the calendar year. Production is particularly heavy during the second quarter, in preparation for these sales.

Richmond Electronics Case Study: Course of Action

John Young is a new assistant controller at Richmond Electronics, a large regional consumer electronics chain. Before John's recruitment, he was aware of Richmond's long trend of moderate profitability. The reports on his desk confirm the slight, but steady, improvements in net income in recent years. The issue he is facing as h

Pledge accounting

I need help with answering these questions. If five donors have pledged $1 million each over the next 4 years to Lucky Duck University: - At what point should these pledges be recognized as revenue? - How should the revenue be valued? - How should these pledges be reported as change in net assets, and in which net assets

Management accounting: Breakeven, segment margin, cash budget

1. Acme Company manufactures a variety of industrial products sold throughout the United States. Jim Beam has been manager of Central Division for the past three years. In years 2 and 3, he was able to qualify for an annual bonus of $100,000 by meeting a target growth rate of 10% of gross sales. Income statements for the divisio

Durham, Arkham: residual income vs. ROI

Durham Division of ABC Corporation has average operating assets of $12,000,000. It expects to earn $1,800,000 for the coming year. The manager has the opportunity to acquire a successful existing business at the start of the year for $3,000,000. The new business is expected to earn $330,000. The earnings of both divisions are ex

Comprehensive Analysis Compared to Incremental Analysis

Compared to a comprehensive analysis, incremental analysis is considered to be more economical, but is equally as efficient. Do you agree or disagree? Why? Explain your reasoning and refer to the concepts of cost effectiveness and business risk.

Managerial Acct: HI LOW Method; Activity Based Costing COGS

See the attached file. Laramie Company has the following inventory balances, in dollars, for the current year: Beginning Ending Raw Materials 820,000 812,000 WIP 135,000 146,000 Finished Goods 491,000 516,000 Materials purchases were $2,544,000 and direct labor was $3,200,000.

Evaluating investments

Should ROI be the only gauge a company uses to evaluate investments? Also, is it wise for a company to lose money on one product if that product is vital to the sale of another extremely profitable product? List one example for each question.

Discussion on Accounting Errors

Locate an article from a financial periodical from the past 2 years about a company that restated its financial statements due to an error in accounting principal. Examples of periodicals are CFO and Journal of Accountancy. Write a paper of no more than 700 words with references discussing the restatement of the company, the

Contemporary Research for Management Accounting: Target

Please see the attached file for the case study to answer the following: 1. Critically evaluate which of the 5 projects the CFO should accept. The answer should explain and where appropriate illustrate how each of the following considerations influenced your decision: a. NPV an IRR b. Size of the project c. Cannibalizatio

Major accounting problems related to interim reports

Interim reporting: A. What are accounting issues related to reporting quarterly? B. What problem does quarterly (interim) reporting create for income taxes? C. What does GAAP require? D. Research attempts to predict next year's income from interim reports, but rarely with success. What is it so hard to pred

Calculating the Inventory Turnover ratio

Please help me with this problem. Prill Co has the following: Current Assets:.....................year 1...............year 2 Cash and marketable securities 160,000 ....150,000 Accounts receivable, net .......175,000... ....170,000 Inventory ..........................140,000 .............150,000 Total current assets ....

Ethics in Cost Control

Exercise 1-9) Zoya Arbiser, regional manager of Gold Medal Sports Shops, is reviewing the results of 15 stores in her region. Store managers are moved annually. Each store manager's income is very dependent on the direct contribution margin of that store. For the past year, Store 9 has been managed by a person who has operate

Management Discussion Questions

1. For what kinds of companies is financial slack most valuable? Are there situations in which financial slack should be reduced by borrowing and paying out the proceeds to the stockholders? 2. Describe some alternative measures of a firm's overall performance. What are their advantages and disadvantages? In each case discuss

Making Adjusting Journal Entries

The ledger of Duggan Rental Agency On March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. An analysis of the accounts shows the following. 1. The equipment depreciates $250 per month. 2. One-third of the unearned rent was recognized as during the quarter. 3

Adjusting Journal Entries - Duggan Rental Agency

Prepare a correct trial balance. (Note it may be necessary to add one or more accounts to the trial balance.) The ledger of Duggan Rental Agency On March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. An analysis of the accounts shows the following. 1. The e

Senior Management Compensation

1. Compare typical compensation and incentive arrangements for (a) top management, for example, the CEO or CFO, and (b) plant or division managers. What are the chief differences 2. Suppose that East Corporation has issued voting and nonvoting stock. Investors hope that holders of the voting stock will use their power to vote o

Capital budgeting and factors than can affect it

1. Explain how each of the following actions or problems can distort or disrupt the capital budgeting process. a. Overoptimism by project sponsors. b. Inconsistent forecasts of industry and macroeconomic variables. c. Capital budgeting organized solely as a bottom-up process. 2. New-model commercial airplanes are much mo

CMA Canada 2020 Vision Explained and Verified

CMA Canada's 2020 Vision document states, "major activities that will define the management accountant's role in 2020....include strategic risk management that identifies and responds to threats, challenges and opportunities; forward-looking financial and performance management fueled by: a. technology-enabled data analysis appl

Special order: At capacity and with idle capacity; analysis Excel

Special Order - Short Term Decisions Consider a firm that has a capacity of 100,000 units. They cannot change this capacity in the short run. A potential customer has requested a special order of 10,000 units (one-time order) at a price of $24 each. There is no sales commission on this order since a sales rep was not invol