...THE PEOPLE WHO MAKE ORGANIZATIONS GO- OR STOP “It’s not what you know, it’s who you know.” Four Common Role-Players: 1. Central Connects: these are the people who link people in an informal network with one another. They aren’t usually the formal leaders within a unit or department, but they know who can provide critical information or expertise that the entire network draws on to get work done. Even though there is a CEO in the company, this person is very important as well. 2. Boundary Spanners: these are the people who connect an information network with other parts of the company or with similar networks in other organizations. They take the time to consult with an advise individuals from many different departments- marketing, production, for instance- regardless of their own affiliations. Connect people from different departments with each other. 3. Information Brokers: these are the people who keep the different subgroups in an informal network together. If they didn’t communicate across the subgroups, the network as a whole would splinter into smaller, less-effective segments. Connect subgroups together 4. Peripheral Specialists: these are the people who anyone in an informal network can turn to for specialized expertise. Are the specialists on the side and tend to be loners. It is important to know who these people are in the organization, because whenever you need something, these people will point you to the right direction and connect...
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...management information is needed to make sound strategic decisions regarding choice of products, manufacturing methods, marketing techniques and channels, assessing customer profitability and other long-term issues. 2. Planning and Decision Making. Cost management information is needed to support recurring decisions regarding replacing equipment, managing cash flow, budgeting raw materials purchases, scheduling production, and pricing. 3. Management and Operational Control. Cost management information is needed to provide a fair and effective basis for identifying inefficient operations and to reward and motivate the most effective managers. 4. Preparation of Financial Statements. Cost management information is needed to provide accurate accounting for inventory and other assets, in compliance with reporting requirements, for the preparation of financial reports and for use in the three other management functions. 3. Explain the difference between cost of goods sold and cost of goods manufactured. = Cost of goods sold is the cost of the inventory that has been sold. Cost of goods manufactured is the cost of the goods finished and transferred out of work in process during the production period. COGS : added beginning inventory; COGM : don’t need to add the beginning 4. Following is a list of costs from Oakland Company, a furniture manufacturer: 1. Wood used in chairs = direct, VC 2. Salaries of...
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...$ 20 per hour Expected Production Level = 50 000 units Labor Hours Required = 200 000 hours Activity (Cost Driver) | Budgeted Costs for 2010 | Cost Driver Used as Allocation Based | Cost Allocation Rate | Material Handling | $ 325 000 | Number of parts used | $ 0.25 per part | Cutting & Lathe Work | $ 2 340 000 | Number of parts used | $ 1.80 per part | Assembly & Inspection | $ 5 000 000 | Direct labor hours | $ 25.00 per hour | Units Produced | Direct Materials Costs | Number of Parts Used | Direct Labor Hours | 3 800 | $ 142 000 | 83 600 | 17 180 | Question a: ABC Costing Activity | Total Time | Cost-Driver Rate | Total Cost | Material Handling | 83 600 | $ 0.25 | $ 20 900 | Cutting & Lathe Work | 83 600 | $ 1.80 | $ 150 480 | Assembly & Inspection | 17 180 | $ 25.00 | $ 429 500 | Total | | | $ 600 880 | Direct Labor Cost = $ 20 x 17 180 hours = $ 343 600 Direct Material Cost = $ 142 000 Total Manufacturing Cost = $ 600 880 + $ 343 600 + $ 142 000 = $ 1 086 480 Cost per unit = $ 1 086 480 3800 units = $ 285.92 per unit Question b: Traditional Costing Predetermined Overhead Application Rate: Predetermined Overhead (Labor per unit) = $ 325 000 + $ 2 340 000 + $ 5 000 000 200 000 hours = $ 38.325 per hour Total Overhead Cost = 17 180 hours x $ 38.325 = $ 658 423.50 Total Direct Cost = $ 20 x 17 180 hours = $ 343 600 Total Direct...
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...management accounting systems Ran Tao Introduction Accounting is the process of identifying, measuring and communicating financial information about an entity to permit informed judgments and decisions by users of the information. (Weetman, 2010) Management accounting is a specialist branch of accounting which has developed to serve the particular needs of management. It helps companies to formulate business strategies and make right business decisions. Many different kinds of management accounting systems are available, some include cost-accounting system, job-costing system and inventory management system. In order to make a smart business decision, it is important to select an appropriate management accounting system that integrates with the company’ financial accounting system. Management accounting innovations and origins An innovation is the successful introduction of an idea perceived as new into a given social system, management accounting innovations involve a set of design characteristics. (Hopper, 2007) The innovation aspects consist of for example types of cost objects, financial or non-financial data and allocation bases. If a proposed system leads to better decisions than the existing system, and the expected benefits from the proposed system exceed the cost of implementation, the new system is adopted. (Feltham, 1972; Demski, 1980) In this case, innovative management accounting system is adopted in many businesses. Management accounting change can...
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...ACCTG 404: Managerial Accounting sections 001, 002, 003 Spring 2012 Instructor: Benjamin Lansford, Ph.D. Office: 325 Business Building E-mail: lansford@psu.edu Office Hours: Fridays 1:30 pm – 4:30 pm, and by appointment TA: Chase Livengood Office: 305A Business Building E-mail: ctl5040@psu.edu Office Hours: Wednesdays 12:15 pm – 3:15 pm I. Course Objectives This course emphasizes the use of accounting information for internal purposes, as opposed to the external disclosure focus of the financial accounting courses. We cover the vocabulary and mechanics of cost accounting and the design of management accounting systems for planning and controlling operations, and for motivating personnel. The course integrates accounting with ideas from data analysis, decision analysis, finance, microeconomics, and operations management. The themes stressed throughout the course are: the notion that information is costly; the circumstances that necessitate cost allocation, and the idea that different costs and different allocation schemes apply for different purposes; and the fundamentals of incentive and compensation plans. Among the topics covered are cost behavior, cost-volume analysis, relevant costs, and the use of cost information for decision-making. II. Course Materials Required Text: “Cost Accounting: A Managerial Emphasis” by Horngren, Datar, and Rajan, 14th...
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...Waste Management Fraud Final Project BS 325 Dustin Nystel 12/17/10 Waste Management Overview Waste Management Inc. is a Houston Texas based company providing waste management and other services in North America. Yahoo financial summarizes the company as follows: Waste Management Inc. offers collections, transfer, recycling, disposal, and waste-to-energy services. Its recycling operations include collections material processing, plastics materials recycling, and commodities recycling. The company also provides recycling brokerage, and electronic recycling services, including the collection, sorting, and disassembling of electronics to reuse or recycle various collected materials. It also engages in renting and servicing portable restrooms for municipalities and commercial customers under the name Port-o-Let. An extension of this service includes its involvement in landfill gas-to-energy operations which is the capture and reuse of naturally occurring methane gas at landfill sites. Finally, the company provides street sweeping and parking services, portable self-storage, healthcare solutions services, services for third parties for construct waste facilities, and municipal, industrial, commercial, and residential trash and recycling services (Yahoo, 2010). Waste Management Inc.’s website offers a deeper look into the company’s bragging points in recent years. The company employs 45,000 employees to serve over 20 million customers. In 2009 the company generated $2...
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...Bartlett's Test of Sphericity shows the value of significance sig=.000 which reflects the strong correlation between household behavior and shopping behavior and rejects the null hypothesis. In the communalities table, the initial is by definition, always equals to 1. While in the extraction column, variables with high values are well represented in the common factor space. In the above table of communalities, all variables have high values, near to 1, and thus are well represented. The screen plot graphs the eigenvalue against the component number. You can see these values in the first two columns of the table immediately above. From the third component on, you can see that the line is almost flat, meaning the each successive component is accounting for smaller and smaller amounts of the total variance. In general, we are interested in keeping only those principal components whose eigenvalues are greater than 1. Components with an eigenvalue of less than 1 account for less variance than did the original variable and so are of little use. In the case of above table, three principal components; 1, 2 and 3 are kept. Explain the model...
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...Computerized accounting Practice set (For Netsuite User) William T. Sucuahi INTRODUCTION Information is one of the vital resources of a company. The accounting department is the biggest contributor of this information in the entire enterprise. The information provider should provide timely and precise information to make good decisions. As computer applications became main stream, transforming data into information has gradually migrated into computerized spreadsheets. Gradually, accounting systems like Enterprise Resource Planning (ERP) integrates business process to provide user the best information they can use. The technological development today like the internet makes ERP became cloud-based and makes information available anytime and anywhere. Netsuite is one of leading cloud-based business management software provider in the world. Its mission is to provide companies around the globe, cloud-based, unified systems that deliver unprecedented capabilities to drive their business. It is a software as a service (SaaS) and it is available on demand. Below is general perspective of Netsuite business management system. The following are the key benefits of using Netsuite: • Comprehensive financials including accounting, budgeting, financial reporting and more • Get instant visibility into real-time financial and operational performance across your entire company • Streamline all back-office processes across financial management, revenue management...
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...a major oil company in Malaysia, in 2011, Mr Aiman was responsible for directing the sales activities of more than twenty petrol stations in the northern region of Malaysia. He was also responsible to train petrol station dealers and staff, initiate sales promotion and implement key initiatives to improve sales. Despite being a stable business with continuous increase in vehicles, often times, petrol station operators faced with the difficulty of sustaining the business, leading to the termination of the dealership license. The lack of knowledge in finance and costing, among others, contributed to business failures. Realising the importance of management accounting concepts and tools such as cost allocation and CVP analysis, Mr Aiman believed that the dealers and their relevant staff should have the knowledge in cost accounting. They should be able to differentiate between variable and fixed expenses, prepare a financial statement and perform a cost-volume-profit (CVP) analysis. To help the dealers perform the CVP analysis, an understanding of how to build and use a financial model associated with the analysis is an added advantage. In coming up with the data and building the financial model, Mr Aiman sought the assistance of Rizal, a trained management accountant. GEZ PETROL STATIONS As at the end of 2010, there were 3,182 petrol stations and 332 mini petrol stations in the country, selling about...
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...to lifelong success. It’s all about opportunity. Accounting professionals can work in any sector, anywhere in the world. And when you choose CGA, you’ll gain the leadership, problem-solving and technical skills that are sought after by organizations in the private, public and not-for-profit sectors. The CGA Program of Professional Studies gives you the tools to succeed in business, no matter where your career takes you. You’ll enter the workforce with the applied knowledge and demonstrated expertise that employers want, including specialized technical knowledge, sectorspecific competencies, problem-solving skills and the ethical integrity to lead. CGA’s competency-based curriculum is simply your best way to prepare for a rewarding career in financial management. Flexible study options and the freedom to choose the career you want CGA is all about choice. You choose the professional-studies path and real-world experience that best match your career goals and interests. We give you the skills and freedom to work in any type of organization, in any industry, at any level of management. With a CGA designation, your opportunities—both professional and personal, at home and around the world—are limitless. Take your place as a highly respected member of the business world. Karmen Rempel, CGA Manager Grant Thornton LLP Vancouver, British Columbia Why CGA? There are many reasons why CGA is the fastest-growing accounting designation in Canada. With CGA, you can: 1. Pursue...
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...CHAPTER 9 INVENTORY COSTING AND CAPACITY ANALYSIS 9-1 No. Differences in operating income between variable costing and absorption costing are due to accounting for fixed manufacturing costs. Under variable costing, only variable manufacturing costs are included as inventoriable costs. Under absorption costing, both variable and fixed manufacturing costs are included as inventoriable costs. Fixed marketing and distribution costs are not accounted for differently under variable costing and absorption costing. 9-2 The term direct costing is a misnomer for variable costing for two reasons: a. Variable costing does not include all direct costs as inventoriable costs. Only variable direct manufacturing costs are included. Any fixed direct manufacturing costs and any direct nonmanufacturing costs (either variable or fixed) are excluded from inventoriable costs. b. Variable costing includes as inventoriable costs not only direct manufacturing costs but also some indirect costs (variable indirect manufacturing costs). 9-3 No. The difference between absorption costing and variable costs is due to accounting for fixed manufacturing costs. As service or merchandising companies have no fixed manufacturing costs, these companies do not make choices between absorption costing and variable costing. 9-4 The main issue between variable costing and absorption costing is the proper timing of the release of fixed manufacturing costs as costs of the period: a. at the time of incurrence...
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...Handbook of Management Accounting Research Volume 3 Edited by CHRISTOPHER S. CHAPMAN Imperial College London, UK ANTHONY G. HOPWOOD University of Oxford, UK MICHAEL D. SHIELDS Michigan State University, USA AMSTERDAM – BOSTON – HEIDELBERG – LONDON – NEW YORK – OXFORD PARIS – SAN DIEGO – SAN FRANCISCO – SINGAPORE – SYDNEY – TOKYO Elsevier The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, UK First edition 2009 Copyright © 2009 Elsevier Ltd. All rights reserved No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elsevier’s Science & Technology Rights Department in Oxford, UK: phone ( 44) (0) 1865 843830; fax ( 44) (0) 1865 853333; email: permissions@elsevier.com. Alternatively visit the Science and Technology Books website at www.elsevierdirect.com/rights for further information Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for...
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...The current issue and full text archive of this journal is available at www.emeraldinsight.com/1176-6093.htm Research in management accounting innovations An overview of its recent development Nur Haiza Muhammad Zawawi Department of Accounting and Finance, University of Malaysia Terengganu, Kuala Terengganu, Malaysia and School of Accounting, La Trobe University, Melbourne, Australia, and Management accounting innovations 505 Zahirul Hoque School of Accounting, La Trobe University, Melbourne, Australia Abstract Purpose – The purpose of paper is to present a review of the literature on management accounting innovations (MAIs). Specifically, it explores recent developments in research on MAIs and offers suggestions for future research. The review differs from existing reviews by its specific focus on MAIs and the recent time period covered. In this paper, MAIs refer to the adoption of “newer” or modern forms of management accounting systems such as activity-based costing (ABC), activity-based management, time-driven ABC, target costing, and balanced scorecards. Design/methodology/approach – The paper presents a review of findings from journal articles published in 22 notable accounting journals. Findings – The review finds that research on MAIs has intensified during the period 2000-2008, with the main focus on exploring the extent to which a host of organizational and environmental factors influence the implementation and use of MAIs in organizations. In addition, research...
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...MidSouth Microbrewery* In 2002, two former Anheuser-Busch employees started their own brewery, MidSouth Microbrewery (MSM). Alexandra (Alex) Bennett and Pete Landgren developed a business plan and obtained a business start-up loan from a local commercial bank. The loan proceeds, combined with their own savings, were sufficient to purchase a small manufacturing facility and equipment. To save money, they purchased most of the stainless steel equipment at a dairy farm auction and then converted the equipment to suit their brewing needs. Other supplies and equipment were purchased from a brewers supply house in Tennessee. Through December 2007, MidSouth Microbrewery had grown steadily, and produced three labels of specialty beers. The company’s first profits were posted in 2005. The Brewing Process Brewing is essentially a four-stage process. Direct labor is incurred primarily in stages one, two, and four. To begin brewing a batch, malt, sugar, hops, and water are mixed and “cooked”. MSM uses a 350-liter copper kettle with a natural gas burner for this stage, which takes 4 to 7 hours, depending on the particular brew produced. This produces a mixture referred to as wort. In stage 2, the wort is siphoned through a wort chiller into one of eight fermentation tanks owned by MSM. The wort chiller is a double copper tube in which cold water is forced in one direction in the outer tube and the wort is pumped the other direction into a fermentation tank through the inner...
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...Accounting 3411 Case Study #1: Forest Hill Paper Company By Thomas L. Albright Forest Hill Paper Company (FHPC) is a closely-held paperboard manufacturer that has been struggling with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was inadequate to provide management with relevant information for decision making. Therefore, the board of directors has approved your consulting company’s proposal to conduct a cost system pilot study. Besides showing an analysis of FHPC’s product cost, your report to the board of directors is to include strategic recommendations based on your findings. INSTRUCTOR NOTE: I recommend viewing the following video before reading the rest of the case study. In the following paragraphs, there is company specific terminology that may make the case seem more difficult than it is if you don’t have some background information (and a visual of what is being described) for this type of company. The following video is not of Forest Hill Paper Company; however, it describes and shows the production environment of a similar company, Clearwater Paper Corporation: http://youtu.be/3t4jSVXjutI Background: Product and Process Description Forest Hill Paper Company (FHPC) produces an extensive line of paperboard in large reels, termed parent rolls. These parent rolls are sold to converters who further process them into containers used for a diverse line of consumer products. The owners of FHPC have long pursued the...
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