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Week 1 discussions
Cost Terms, Classifications, and |
Welcome to our Week 1 Discussions!
To get us started, let’s consider the following questions.
1) Would a traditional income statement differ depending on whether the
business is a service organization, merchandiser, or manufacturer?
2) Could we use managerial accounting tools to assess the profitability
of an organization other than a manufacturing business, or are the topics that
we are learning only related to manufacturing?
3) If we could use these concepts in service and/or merchandising
businesses, how would we go about doing so?
Let’s start with the first question.
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Research and Application (graded) |
Go to page 130, Case 3-30, Ethics
and the Manager. Let’s discuss the questions, make value-added comments,
points, and share personal experiences of unethical situations.
Week 2 discussions
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Job Order and Process Costing Systems |
Welcome to our Week 2 Discussions! Let’s begin by
discussing when job order costing systems would be more appropriate than a
process costing system.
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Research and Application (graded) |
Go to page 166 and read Case 4-19,
Ethics and the Manager: Understanding the Impact of Percentage Completion on
Profit. Let’s address the questions, provide reasons for our answers, share
relevant personal experiences, and provide value-added comments, articles, and
related websites. Let’s have a lot of interaction.
Week 3 discussion
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Welcome to our Week 3 Discussions! To get us
started, let’s discuss how CVP analysis is used in managerial accounting
decision-making.
This section lists options that
can be used to view responses.
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Research and Application (graded) |
Below is the link that will take
you directly to the 2004 financial statements of the Benetton Group, followed
by the discussion questions.
Let’s answer these questions in the order that they appear.
1. How do the formats of the income statements shown on
pages 33 and 50 of Benetton’s annual report differ from one
another (disregard everything beneath the line titled “income from
operations”)? Which expenses shown on page 50 appear to have been reclassified
as variable selling costs on page 33?
2. Why do you think cost of sales is included in the computation of
contribution margin on page 33?
3. Perform two separate computations of Benetton’s break-even point in euros.
For the first computation, use data from 2003. For the second computation, use
data from 2004. Why do the numbers that you computed differ from one another?
4. What sales volume would have been necessary in 2004 for Benetton to attain a
target income from operations of €300 million?
5. Compute Benetton’s margin of safety using data from 2003 and 2004. Why do
your answers for the two years differ from one another?
6. What is Benetton’s degree of operating leverage in 2004? If Benetton’s sales
in 2004 had been 6% higher than what is shown in the annual report, what income
from operations would the company have earned? What percentage increase in
income from operations does this represent?
7. What income from operations would Benetton have earned in 2004 if it had
invested an additional €10 million in advertising and promotions and realized a
3% increase in sales? As an alternative, what income from operations would
Benetton have earned if it not only invested an additional ?10 million in
advertising and promotions but also raised its sales commission rate to 6% of
sales, thereby generating a 5% increase in sales? Which of these two scenarios
would have been preferable for Benetton?
8. Assume that total sales in 2004 remained unchanged at, €1,686 million (as
shown on pages 33 and 50); however, the Casual sector sales were, €1,504
million, the Sportswear and Equipment sector sales were €75 million, and the
Manufacturing and Other sector sales were €107 million. What income from operations
would Benetton have earned with this sales mix? (Hint: look at pages 36 and 37
of the annual report.) Why is the income from operations under this scenario
different from what is shown in the annual report?
Week 4 discussion
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Budgeting Case Study (graded) |
Let’s start the week by reviewing
the following case. First, let’s discuss how the budgeting process as employed
by Springfield contributes to the failure to achieve the president’s sales and
profit targe
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To begin, download the practice
Midterm Exam from Doc Sharing to access questions and topics for review. For
multiple-choice questions, please explain why the answer chosen is correct, and
why the other choices would not be correct. Please support your response. Let’s
begin with the questions on Page 1.
Week 5 discussions
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Standards, Variances, Flexible Budgets |
To begin, please read Case 10B-5
on page 471, Ethics and the Manager. How were the standard costs developed? Are
the standards set too high or too low? Please elaborate.
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Let’s look at Case 9-26, Ethics and the Manager, in
Chapter 9, page 414, and address and discuss the question there.
Week 6 discunn
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Segment Reporting and Relevant Costs |
To begin, please read Case 12-32 on page 576. Which
costs are relevant in the decision to shut down the Ashton facility? Then,
let’s answer the questions at the end of the case. Also, value-added comments,
points, and experiences are welcome and encouraged.
This section lists options that
can be used to view responses.
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To begin, please read Problem
11-22 on page 505 of the e-book and let’s discuss the first question!
Value-added comments, points, and experiences are also welcomed and encouraged.
Week 7 discussion
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Capital Budgeting (graded) |
Welcome to Week 7 Discussions!
Let’s begin by discussing the difference between capital budgeting
screening decisions and capital budgeting preference decisions. Then, we
will entertain additional questions relating to important capital budgeting
terms, concepts, tools, methods, etc.
Value-added, comments, points, observations, and experiences are welcomed and
encouraged.
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Exam Review (graded) |
To begin, download the Practice
Final Exam from Doc Sharing to access questions and topics for review. For
multiple-choice questions, please explain why the answer chosen is correct and
why the other choices would not be correct. Please support your response. Let’s
begin with the questions on page 1.
