Accounting Week 2

Week 2 Basic Cost Management Concepts

Topics

• What do we mean by Costs? Period vs Product
• What is Expense?
• Costs on Financial Statements Income Statement
• Balance Sheet
• Statement of Cash flows

Manufacturing Cost Flows

Outcomes

• Compute the flow of costs through manufacturing cycles and the determination of product (or service) cost.
• Discuss the impact of flow of costs and product cost on decision making.
• Describe the issues and procedures for the allocation of overhead costs, including activity-based costing.
• Use commonly used tools for performance evaluation (e.g., ROI, residual income).
• Discuss the impact of performance evaluation on decision making.

Prepare and explain the flow of cash as relating to operating, investing, and financing activities, free cash flow, and the impact that it has on decision making.

Learning Resources

• eBook: Managerial accounting: Creating value in a dynamic business environment. Chapter 2 Basic Cost Management Concepts

Introduction – Text

Complete these Assignments

Discussion 2.1 PBS Station Analysis

Assignment 2.1 McGraw Hill Connect Week 2

Discussion 2.1 PBS Station Analysis

A local PBS station has decided to produce a TV series on state-of-the-art manufacturing. The director of the TV series, Justin Tyme, is currently attempting to analyze some of the projected costs for the series.

Tyme intends to take a TV production crew on location to shoot various manufacturing scenes as they occur.

If the four-week series is shown in the 8:00-9:00 P.M. prime-time slot, the station will have to cancel a wildlife show that is currently scheduled.

Management projects a 10% viewing audience for the wildlife show, and each 1% is expected to bring in donations of $10,000.

In contrast, the manufacturing show is expected to be watched by 15% of the viewing audience. However, each 1% of the viewership will likely generate only $5,000 in donations.

If the wildlife show is canceled, it can be sold to network television for $25,000.

1. Using the cost terminology introduced in this chapter, comment on each of the financial amounts mentioned in this scenario.
2. What are the relative merits of the two shows regarding the projected revenue to the station?
3. Based on your learning, what decision would you make and why?

Tie your answer to the eBook and also reference an external academic source.

In your response post, comment on how your analysis agrees with or differs from your classmate’s analysis. Share any additional resources that could help with this analysis.

Grading Criteria

1. Initial post (300 words, due Friday @ 11:59 pm) (50%)
2. Grammar and mechanics (10%)

Assignment 2.1 McGraw Hill Connect Week 2

Question 1

Required information

[The following information applies to the questions displayed below.]

A computer operator at a blog hosting company earns $16.00 per hour. By contract, the employee earns $24.00 (time and a half) for overtime hours. The operator worked 45 hours during the first week of May, and overtime is paid after the usual 40 hours.

Required:

1. Compute the computer operator’s compensation for the week.

Note: Round your final answer to 2 decimal places

Question 2

Required information

Skip to question

[The following information applies to the questions displayed below.]A computer operator at a blog hosting company earns $16.00 per hour. By contract, the employee earns $24.00 (time and a half) for overtime hours. The operator worked 45 hours during the first week of May, and overtime is paid after the usual 40 hours.

2. Calculate the employee’s total overtime premium for the week.

Note: Do not round intermediate calculations. Round your final answer to 2 decimal places.

Question 3

Required information[The following information applies to the questions displayed below.]

A computer operator at a blog hosting company earns $16.00 per hour. By contract, the employee earns $24.00 (time and a half) for overtime hours. The operator worked 45 hours during the first week of May, and overtime is paid after the usual 40 hours.3. How much of the employee’s total compensation for the week is direct-labor cost? How much is overhead?

Note: Do not round intermediate calculations. Round your final answers to 2 decimal places. Direct Labor Cost? Overhead cost

Question 4

Required information[The following information applies to the questions displayed below.]

List the costs that would likely be included in each of the following marginal-cost calculations.

Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not available.

Required:

1. The marginal cost of one additional passenger on an American Airlines flight.

check all that applyFood and beveragesIncrease in fuel costsunansweredDirect laborunansweredAdvertising expenses

Question 5

Required informationSkip to question[The following information applies to the questions displayed below.]List the costs that would likely be included in each of the following marginal-cost calculations.Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not available.

The marginal cost of serving one additional customer in a Chipotle Mexican Grill.

check all that applyFood and beveragesunansweredAdvertising expensesunansweredAdmin expensesunansweredMarketing costquestion 6Required information[The following information applies to the questions displayed below.]List the costs that would likely be included in each of the following marginal-cost calculations.Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not available.The marginal cost of United Airlines adding a flight from Honolulu to Seattle.check all that applyAircraft fuelunansweredWages of the flight crewunansweredRent of office buildingunansweredWages of airport maintenance personnelunansweredFood and beveragesunansweredManufacturing overheadquestion 7 Required informationSkip to question[The following information applies to the questions displayed below.]List the costs that would likely be included in each of the following marginal-cost calculations.Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect. Check my work is not available.The marginal cost of keeping a Bank of America branch bank open one additional hour on Saturdays.check all that applyWages or commissionunansweredDirect materialunansweredElectricity expensesunansweredAdvertising expensesQuestion 8