ACC513 Managerial Accounting Lesson 6 –Allocating Costs to Responsibility Centers Introduction In this lesson students explore the nature of common or indirect costs. They also become aware of why companies allocate common costs to departments and products. Examples of how service department costs are allocated to production departments are presented. The allocation of marketing and administrative expenses as well as the allocation of joint-process costs is discussed. Lesson Learning Objectives By the conclusion of this Lesson you should be able to: Explain the nature of indirect costs. Allocate service department costs to production departments. Explain why activity-based costing is used Read More …
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ACC513 Managerial Accounting: Investment Center Performance Evaluation and Incentive Issues Questions
ACC513 Managerial Accounting Lesson 5 –Investment Center Performance Evaluation and Incentive Issues Introduction This lesson discusses concepts and methods of measuring performance and controlling activities in multidivision organizations. Return on investment (ROI) as a performance measure is interpreted. Further, divisional organizations engage in transfer pricing. These rules are introduced and the behavioral issues are analyzed. The economic consequences of multinational transfer prices are explained. There are incentive issues in allocating costs to divisions when measuring divisional performances. The contribution approach to divisional reporting improves management decisions. ROI is compared to economic value added. Students will explore issues in the design Read More …
ACC513 Managerial Accounting: Profit Planning, Budgeting and Performance Evaluation Questions
ACC513 Managerial Accounting Lesson 4 -Profit Planning, Budgeting and Performance Evaluation Facing problem in Managerial Accounting Assignment? Assignment Task provide free samples to Univesity students prepared by our professional writers. Introduction This lesson shows how to develop profit plans. Budgets are a tool for planning, performance evaluation, and motivation. The idea of responsibility centers is explained. Steps to develop the master budget are identified along with ethical dilemmas in budgeting. The appendixes list components of a comprehensive master budget and describe an incentive model for accurate reporting. Finally, this lesson provides additional detail in comparing the profits achieved with those Read More …
ACC513 Managerial Accounting: Differential Cost Analysis and Capital Expenditure Decisions Questions Answers
ACC513 Managerial Accounting Lesson 3 – Differential Cost Analysis and Capital Expenditure Decisions Get answers to questions in Managerial Accounting from experts. Students face a lot of trouble when it comes to Managerial accounting assignment questions and answers. Introduction This lesson begins with several applications of one principle – differential analysis. Differential analysis is the analysis of differences among particular alternative actions. It deals with managers’ need to know the differential effect of various alternative actions on profits. The emphasis then shifts to long-run decisions with examination of changes in plant or operating capacity. The importance of separating the investing Read More …