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1.
Chapter 1, Introduction to Managerial Accounting and Chapter 2, Job Order Costing. Managerial Accounting is used mostly in manufacturing companies which assemble it’s own inventory. Job Order costing is a method for firms which produce unique items such as high end homes or cars tailored to their owners.
Please identify a specific company that would rely on managerial accounting information and why this is the case. When identifying the company please list it’s full legal name, location, industry, and how managerial accounting would assist in analyzing a company’s financials. It is not allowed to use the same company as a student from a previous post in Week 1.
2.
Chapter 3, Process Costing and Chapter 4 Activity Based Costing. Process Costing is for manufacturers which assemble products that are identical. Activity Based Costing assigns costs to overhead activities and then assigns those costs to the assembled products. Using the company in your Week 1 post, please identify some overhead costs in the manufacturing operations. What makes these overhead costs and what cost driver should be used to apply the overhead costs to the products?
3.
Chapter 5, Cost-Volume-Profit Analysis and Chapter 6, Variable Costing for Management Analysis. Cost-Volume-Profit Analysis is about formulas and ratios used to determine the profitability of individual products and/or operations. Variable Costing is a way to calculate profitability of a firm’s operations by either calculating the contribution margin or gross profit. Still using the company from your Week 1, please discuss how the contribution margin might be used to determine the profitability of that product and how it’s used to make the operations more profitable.
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