Do an Internet search on the terms carbon offset and carbon footprint. What is a carbon footprint? What is a carbon offset? Why would carbon offsets be of interest to a company? What are some companies that offer (sell) carbon offsets?
> Describe the company selected, including its products or services
> Why would it be inappropriate for a custom-home builder to use process costing?
> What product costs must be allocated to jobs? Why must these costs be allocated rather than assigned?
> Compare and contrast a cost center, a revenue center, a profit center, and an investment center. List a specific example of each type of responsibility center. How is the performance of managers evaluated in each type of responsibility center?
> How can job cost records help to promote sustainability efforts within a company?
> What account is credited when manufacturing overhead is allocated to jobs during the period? What account is debited when manufacturing overhead costs are incurred during the period? Would you expect these two amounts (allocated and incurred manufacturin
> Explain why the cost of goods sold should be lower if manufacturing overhead is over- allocated. Should operating income be higher or lower if manufacturing overhead is over - allocated? Why?
> Describe a situation that may cause manufacturing overhead to be overallocated in a given year. Also, describe a situation that may cause manufacturing overhead to be un- derallocated in a given year.
> Why is it acceptable to close overallocated or underallocated manufacturing overhead to Cost of Goods Sold rather than allocating it proportionately to Work in Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? Under what circumstances
> Why does management need to know the cost of a job? Discuss at least five reasons.
> Why should manufacturing overhead be allocated to a job even though the costs cannot be directly traced to a job? Give at least two reasons.
> Make a list of all other expenses that would be needed to create your product. Examples of other expenses would be rent, utilities, and insurance. Estimate the cost of each of these expenses per year.
> When the predetermined manufacturing overhead rate is calculated, why are estimated costs and cost driver levels used instead of actual dollars and amounts?
> For what types of products is job costing appropriate? Why? For what types of products is process costing appropriate? Why?
> Describe at least four advantages of decentralization. Also describe at least two disadvantages of decentralization.
> Why should companies estimate the environmental costs of a given job? Why have EPR (extended producer responsibility) laws come into existence?
> Would a job-order costing system or a process costing system be used for this production process? Give specific reasons for your choice of which costing system would be most appropriate for this manufacturer.
> Describe the jobs of the workers who would be considered “indirect labor” in the making of this product.
> Describe the jobs of the workers who would be considered “direct labor” in the making of this product
> What indirect materials are used to make this product?
> What raw materials are used to make this product?
> Describe the product that is being produced and the company that makes it
> Define manufacturing overhead. In addition to the indirect materials and indirect labor previously described, what other manufacturing overhead costs would be incurred in this production process? Be specific and thorough. Make reasonable “guesses” if yo
> What skills do employers value highly? What does that tell you about “what accountants do” at their companies?
> Summarize the production process that is used in making this product.
> List and describe the four perspectives found on a balanced scorecard. For each perspective, list at least two examples of KPIs that might be used to measure performance on that perspective.
> List the segments as reported in the annual report. Make a table listing each operating segment, its revenues, income, and assets.
> Use the data you collected in Requirement 2 to calculate each segment’s capital turnover. Interpret your results.
> The rules for how segments should be presented in the annual report are governed by external financial accounting rules. The information you gathered for the previous requirements would be used by investors and other external stakeholders in their analys
> What are financial budgets? List at least three financial budgets
> What are operating budgets? List at least four operating budgets.
> What is a budget committee? What is the budget committee’s role in the budgeting process?
> Describe the process for developing a budget.
> Describe the difference between an operating budget and a capital expenditures budget.
> List at least four reasons why a company would use budgeting.
> Describe the product that is being produced and the company that produces it.
> “The sales budget is the most important budget.” Do you agree or disagree? Explain your answer.
> Why might a company want to state environmental goals for increased sustainability in its budgets? Explain.
> How does the master budget for a service company differ from a master budget for a manufacturing company? Which (if any) operating budgets differ and how, specifically, do they differ? Which (if any) financial budgets differ and how, specifically, do the
> Give an example of a sustainable practice that would affect a company’s budget. How might this sustainable practice, if adopted, impact the company’s budget in both the short-term and in the long-term?
> Compare and contrast “participative budgeting” with “top-down” budgeting.
> Describe your product. What is your cost of this product? What size (quantity) will you purchase? At what price will you sell your repackaged product? Make projections of your sales in units in each of the upcoming three months.
> Prepare a budgeted income statement that reflects the budgets you prepared, including the sales budget, direct materials budget, direct labor budget, and the operating expenses budget. This budgeted income statement should include one column for each of
> Think about any other expenses you are likely to have (i.e., booth rental at a flea market or a vendor license). Prepare the operating expenses budget for each of the upcoming three months.
> Prepare a direct labor budget (for your labor) for each of the upcoming three months.
> Prepare the direct material budgets for the upcoming three months, assuming that you need to keep 10% of the direct materials needed for next month’s sales on hand at the end of each month (this requirement is why you needed to estimate unit sales for fo
> List a direct cost and an indirect cost for each of the three different cost objects in question 5. • Advertising • Internal control • Environmental sustainability
> Prepare a sales budget for each of the upcoming three months.
> Estimate how many hours you will spend in each of the upcoming three months doing the purchasing, repackaging, and selling. Select a reasonable wage rate for yourself. What will your total labor costs be in each of the upcoming three months?
> How can “make-or-buy” concepts be applied to decisions at a service organization? What types of make-or-buy decisions might a service organization face?
> What is the difference between segment margin and contribution margin? When would each be used?
> Why could a manager be justified in ignoring fixed costs when making a decision about a special order? When would fixed costs be relevant when making a decision about a special order?
> What undesirable result can arise from allocating common fixed costs to product lines?
> What is an opportunity cost? List possible opportunity costs associated with a make-or-buy decision.
> A beverage company is considering whether to discontinue its line of grape soda. What factors will affect the company’s decision? What is a qualitative factor? Which of the factors you listed are qualitative?
> A computer manufacturer is considering outsourcing its technical support call center to India. Its current technical support call center is located in Dellroy, Ohio. The current call center is one of the top employers in Dellroy and employs about 10% of
> How can what is taught in managerial accounting help you in other careers other than accounting?
> List the qualitative factors that could influence the company’s decision of whether or not to outsource this business operation. Again, you need to make reasonable guesses about the qualitative factors that might influence the company’s decision to outso
> List the revenues and costs that might be impacted by this outsourcing decision. The article will not list many, if any, of these revenues and costs; you should make reasonable guesses about what revenues and/or costs would be associated with the busines
> Why did the company decide to outsource (or is considering outsourcing)?
> Describe the company that is making the decision to outsource. What area of the business is the company looking to outsource, or did it already outsource?
> How can CVP techniques be used in supporting a company’s sustainability efforts? Conversely, how might CVP be a barrier to sustainability efforts?
> Rondell Pharmacy is considering switching to the use of robots to fill prescriptions that consist of oral solids or medications in pill form. The robots will assist the human pharma- cists and will reduce the number of human pharmacy workers needed. This
> Is the contribution margin ratio of a grocery store likely to be higher or lower than that of a plastics manufacturer? Explain the difference in cost structure between a grocery store and a plastics manufacturer. How does the cost structure difference im
> Why is it necessary to calculate a weighted-average contribution margin ratio for a multi- product company when calculating the breakeven point for that company? Why can’t all of the products’ contribution margin ratios just be added together and average
> What conditions must be met for cost-volume-profit analysis to be accurate?
> “Breakeven analysis isn’t very useful to a company because companies need to do more than break even to survive in the long run.” Explain why you agree or disagree with this statement.
> Why is managerial accounting more suitable for internal reporting than for financial accounting?
> The purchasing manager for Rockwell Hall Bags has been able to purchase the material for its signature handbags for $9 less per bag than in the prior year. Keeping everything else the same, what effect would this reduction in material cost have on the br
> Define breakeven point. Why is the breakeven point important to managers?
> Describe three ways that cost-volume-profit concepts could be used by a service organization.
> Describe four different ways cost-volume-profit analysis could be useful to management.
> Alston Jewelry had sales revenues last year of $2.4 million, while its breakeven point (in dollars) was $2.2 million. What was Alston Jewelry’s margin of safety in dollars? What does the term margin of safety mean? What can you discern about Alston Jewel
> Now decide how much you would like to make in before-tax operating income (target profit) in each of the upcoming five years. Calculate how many units you would need to sell in each of the upcoming years to meet these target profit levels.
> Calculate the margin of safety in units for each of the five years in your projection.
> Calculate how many units of your product you will need to sell to break even in each of the five years you have projected.
> Now classify all of the expenses you have listed as being either fixed or variable. For mixed expenses, separate the expense into the fixed component and the variable component.
> Make a list of all of the equipment you will need to make your product. Estimate the cost of each piece of equipment that you will need.
> What business trends are influencing managerial accounting today? How do these trends impact management accountants’ roles in the organization?
> What are the three main areas of management’s responsibility? How are these three areas interrelated? How does managerial accounting support each of the responsibility areas of managers?
> Mirage Investments Corp. (MIC) planned a tender offer for the shares of Gulf States International Corp. (GSIC). Archer, an officer of MIC, placed purchase orders for GSIC stock through the New York office of the Bahamian Bank (BB) prior to the announce-
> The Greenwich Bank & Trust Co. (GB&T) opened in 1998 and by 2008 had expanded to a total of four branches in the Greenwich, Connecticut, community of 62,000 residents. A competitor using the name Bank of Greenwich (BOG) opened in December 2006. GB&T ’ s
> Mrs. Downing was fitted for dentures by a dentist, Dr. Cook. After she received her dentures, Mrs. Downing began experiencing mouth pain that she attributed to Dr. Cook’s manufacture of dentures that did not fit her properly. Mrs. Downing filed suit agai
> Power & Telephone Supply Company (PTSC) put together a PowerPoint presentation for Dumont Telephone Company that showed the “ head-end ” system — a new phone system that would provide Dumont ’ s customers with new video features that Dumont was not curre
> Thomas Bell, a minor, went to work in the Pitts- burgh beauty parlor of Sam Pankas and agreed that when he left the employment, he would not work in or run a beauty parlor business within a 10-mile radius of downtown Pittsburgh for a period of two years.
> R-P Packaging manufactured cellophane wrapping material that was used by Kern ’ s Bakery in packaging its product. Kern ’ s decided to change its system for packaging cookies from a tied bread bag to a tray covered with printed cellophane wrapping. R-P t
> Bakker Brothers of Idaho agreed to buy Charles E. Graff ’ s 1989 onion seed crop. The contract required that the onion seeds have an 85 percent germination rate. Despite careful testing and advice from experts, Bakker Brothers could not get a germination
> Future Tech International, Inc., is a buyer and distributor of Samsung monitors and other computer products. In 1993, Future Tech determined that brand loyalty was important to customers, and it sought to market its own brand of computer pro- ducts. Futu
> Coppola, who collected coins, joined a coin club, First Coinvestors, Inc. The club would send coins to its members, who were to pay for them or return them within 10 days. What was the nature of the transaction? [First Coinvestors, Inc. v. Coppola, 388 N
> Willis Music Co. advertised a television set at $22.50 in the Sunday newspaper. Ehrlich ordered a set, but the company refused to deliver it on the grounds that the price in the newspaper ad was a mistake. Ehrlich sued the company. Was it liable? Why or
> Field executed a will. On her death, the will was found in her safe deposit box, but the part of it containing the fifth bequest had been torn from the will. This torn fragment was also found in the box. There was no evidence that anyone other than Field
> Using a bad check, B purchased a used automobile from a dealer. B then took the automobile to an auction at which the automobile was sold to a party who had no knowledge of its history. When B’s check was dishonored, the dealer brought suit against the p
> Paden signed an agreement dated May 28 to purchase the Murrays’ home. The Murrays accepted Paden’s offer the following day, and the sale closed on June 27. Paden and his family moved into the home on July 14, 1997. Paden had the home inspected prior to c
> Hicks, the president and manager of Intermountain Merchandising, wanted to sell the business to Montana Merchandising, Inc. To provide a basis for the transaction, he retained Bloomgren, an accountant, to conduct an audit of Intermountain. Bloomgren knew
> Around June 2005, PPI purchased three pallets of computer wafers from Omneon Video Graphics. PPI requested that Omneon ship the wafers directly to the City University of New York, the end purchaser of the goods. Omneon and PPI agreed that Omneon would sh
> D drew a check to the order of P. P took the check postdated. P knew that D was having financial difficulties and that the particular checking account on which this check was drawn had been frequently overdrawn. Do these circumstances prevent P from bein
> United Overseas, Ltd. (UOL), is a U.K. firm that purchases and sells manufacturers’ closeouts in Europe and the Middle East. UOL’s representative, Jay Knox, used stationery listing a UOL office in New York to solicit business from Revlon, Inc., in New Yo
> Cable News Network with its principal place of business in Atlanta, Georgia, is the owner of the trademark CNN in connection with providing news and information services to people worldwide through cable and satellite television networks, Web sites, and
> Suzanne Andres was injured when she fell from the balcony of her second-floor apartment in the Roswell-Windsor Village Apartments. Andres was leaning against the railing on the balcony when it gave out, and she and the railing fell to the ground. Andres
> CVS Pharmacy, Inc., entered into a contract with Dan Cake, a company in Portugal, for Dan Cake to ship tins of cookies for sale at CVS pharmacies. The cookies were originally supposed to be delivered on or before September 7, 2007. There were several del
