ACC 543 Reading feeds the Imagination/Uophelpdotcom

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ACC 543 Reading feeds the Imagination
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ACC 543 Aspects of Employment and Environment
Paper and PowerPoint

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• Aspects of Employment and Environment Paper and
  PowerPoint You are an accountant at a small
  accounting firm. One of your clients is looking
  to open a small river-rafting business. Your
  client will run the business operations from a
  mobile home office on a piece of land on the
  riverbank. Your client must decide the best
  location to start this business and has asked you
  to explain the accounting advantages of choosing
  the best location. Your client is also wondering
  if the business should build a permanent
  structure on the land, or use the mobile home
  they already own. Additionally, your client wants
  to know the insurance implications of this
  decision. How would the insurance implications of
  the location decision change the companys risks
  and how might your client use insurance to better
  manage those risks?
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ACC 543 Capital Budget Recommendation

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• Capital Budget Recommendation Guillermo
  Furniture, a company that manufactures midgrade
  and high-end sofas, has just hired you as an
  accountant. The owner, Guillermo Navallez, has
  assigned you the tasks of determining which
  decisions provide the greatest returns. Read the
  Guillermo Furniture Scenario and review the
  Guillermo Furniture Data Sheets on your student
  Web site. Enter your name in cell A3 of the
  Income Information tab in the Guillermo Furniture
  Data Sheets. Submit the exact name you entered to
  your instructor. Obtain the number that is shown
  as a result for total assets on the Assets,
  Liabilities, and Equity In tab. Submit the number
  for total assets to your instructor.
  Differentiate among the various capital budget
  evaluation techniques. Explain how these
  different techniques would help you make your
  recommendation to Guillermo. Recommend a course
  of action based on a capital budget evaluation
  technique and include present value calculations
  as part of your recommendation. Submit your
  assignment as an attachment of no more than 1,050
  words.
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ACC 543 Entire Course

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• ACC 543 Flexible Budgets Team Paper
• ACC 543 Capital Budget Recommendation
• ACC 543 Aspects of Employment and Environment
  Paper and PowerPoint
• ACC 543 Exercise 24-1 Net Present Value/Present
  Value Index
• ACC 543 Exercise 24-8A Determining the Internal
  Rate of Return
• ACC 543 Exercise 24-6A Determining Net Present
  Value
• ACC 543 Exercise 24-5B Purchase of Popcorn
  Machine
• ACC 543 Exercise 24-5A Determining net present
  value
• ACC 543 Exercise 24-4A Determining the present
  value of an annuity
• ACC 543 Exercise 24-3A Present Value Analysis
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ACC 543 Exercise 15-6B

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• Exercise 15-6B Fixed versus variable cost
  behavior Professional Chairs Corporation produces
  ergonomically designed chairs favored by
  architects. The company normally produces and
  sells from 5,000 to 8,000 chairs per year. The
  following cost data apply to various production
  activity levels. Required a. Complete the
  preceding table by filling in the missing amounts
  for the levels of activity shown in the first row
  of the table. b. Explain why the total cost per
  chair decreases as the number of chairs increases

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ACC 543 Exercise 15-12B

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• Exercise 15-12B Effect of cost structure on
  projected profits Logan and Martin compete in the
  same market. The following budgeted income
  statements illustrate their cost structures.
  Required a. Assume that Logan can lure all 80
  customers away from Martin by lowering its sales
  price to 75 per customer. Reconstruct Logans
  income statement based on 160 customers. b.
  Assume that Martin can lure all 80 customers away
  from Logan by lowering its sales price to 75 per
  customer. Reconstruct Martins income statement
  based on 160 customers. c. Why does the
  price-cutting strategy increase Logans profits
  but result in a net loss for Martin?
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ACC 543 Exercise 15-17A Identifying Cost Behavior

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• Exercise 15-17A Identifying Cost Behavior
  Identify the following costs as fixed or
  variable. Costs related to plane trips between
  San Diego, California, and Orlando, Florida,
  follow. Pilots are paid on a per trip basis. a.
  Pilots salaries relative to the number of trips
  flown. b. Depreciation relative to the number of
  planes in service. c. Cost of refreshments
  relative to the number of passengers. d. Pilots
  salaries relative to the number of passengers on
  a particular trip. e. Cost of a maintenance check
  relative to the number of passengers on a
  particular trip. f. Fuel costs relative to the
  number of trips. National Union Bank operates
  several branch offices in grocery stores. Each
  branch employs a supervisor and two tellers. g.
  Tellers salaries relative to the number of
  tellers in a particular district.  
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ACC 543 Exercise 16-9A

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• Exercise 16-9A Mimosa Corporation expects to
  incur indirect overhead costs of 72,000 per
  month and direct manufacturing costs of 11 per
  unit. The expected production activity for the
  first four months of 2007 is as follows. Required
  a. Calculate a predetermined overhead rate based
  on the number of units of product expected to be
  made during the first four months of the year. b.
  Allocate overhead costs to each month using the
  overhead rate computed in Requirement a. c.
  Calculate the total cost per unit for each month
  using the overhead allocated in Requirement b.
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ACC 543 Exercise 18 17B Process Cost System Cost
of Production Report

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• Exercise 18-17B Process Cost System Cost of
  Production Report At the beginning of 2004,
  Dozier Company had 1,800 units of product in its
  work in process inventory, and it started 19,200
  additional units of product during the year. At
  the end of the year, 6,000 units of product were
  in the work in process inventory. The ending work
  in process inventory was estimated to be 50
  percent complete. The cost of work in process
  inventory at the beginning of the period was
  9,000, and 108,000 of product costs was added
  during the period. Required Prepare a cost of
  production report showing the following. a. The
  number of equivalent units of production. b. The
  product cost per equivalent unit. c. The total
  cost allocated between the ending Work in Process
  Inventory and Finished Goods Inventory accounts.

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ACC 543 Exercise 18-17A

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• Exercise 18-17A Hamby Company had 250 units of
  product in its work in process inventory at the
  beginning of the period and started 2,000
  additional units during the period. At the end of
  the period, 750 units were in work in process
  inventory. The ending work in process inventory
  was estimated to be 60 percent complete. The cost
  of work in process inventory at the beginning of
  the period was 3,420, and 27,000 of product
  costs was added during the period

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ACC 543 Exercise 19 24A Assessing Simultaneous
Changes in CVP Relationships

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• Exercise 19-24A Assessing Simultaneous Changes
  in CVP Relationships Green Shades Inc. (GSI)
  sells hammocks variable costs are 75 each, and
  the hammocks are sold for 125 each. GSI incurs
  250,000 of fixed operating expenses annually.
  Required a. Determine the sales volume in units
  and dollars required to attain a 50,000 profit.
  Verify your answer by preparing an income
  statement using the contribution margin format.
  b. GSI is considering implementing a quality
  improvement program. The program will require a
  10 increase in the variable cost per unit. To
  inform its customers of the quality improvements,
  the company plans to spend an additional 20,000
  for advertising. Assuming that the improvement
  program will increase sales to a level that is
  3,000 units above the amount computed in
  Requirement a, should GSI proceed with plans to
  improve product quality? Support your answer by
  preparing a budgeted income statement. c.
  Determine the new break-even point in units and
  sales dollars as well as the margin of safety
  percentage, assuming that the quality improvement
  program is implemented.
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ACC 543 Exercise 22 6A Using a flexible budget to
accommodate market uncertainty

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• Exercise 22-6A Using a flexible budget to
  accommodate market uncertainty According to its
  original plan, Katta Consulting Services Company
  would charge its customers for service at 200
  per hour in 2006. The company president expects
  consulting services provided to customers to
  reach 40,000 hours at that rate. The marketing
  manager, however, argues that actual results may
  range from 35,000 hours to 45,000 hours because
  of market uncertainty. Kattas standard variable
  cost is 90 per hour, and its standard fixed cost
  is 3,000,000.
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ACC 543 Exercise 22-6A Using a flexible budget to
accommodate market uncertainty

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• Exercise 22-6A Using a flexible budget to
  accommodate market uncertainty According to its
  original plan, Katta Consulting Services Company
  would charge its customers for service at 200
  per hour in 2006. The company president expects
  consulting services provided to customers to
  reach 40,000 hours at that rate. The marketing
  manager, however, argues that actual results may
  range from 35,000 hours to 45,000 hours because
  of market uncertainty. Kattas standard variable
  cost is 90 per hour, and its standard fixed cost
  is 3,000,0
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ACC 543 Exercise 24 3A Present Value Analysis

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• Exercise 24-3A Present Value Analysis Ginger
  Smalley expects to receive a 300,000 cash
  benefit when she retires five years from today.
  Ms. Smalleys employer has offered an early
  retirement incentive by agreeing to pay her
  180,000 today if she agrees to retire
  immediately. Ms. Smalley desires to earn a rate
  of return of 12 percent. Required a. Assuming
  that the retirement benefit is the only
  consideration in making the retirement decision,
  should Ms. Smalley accept her employers offer?
  b. Identify the factors that cause the present
  value of the retirement benefit to be less than
  300,000.
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ACC 543 Exercise 24 5B Purchase of Popcorn Machine

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• Exercise 24-5B Purchase of Popcorn Machine Heidi
  Kahn, manager of the Grand Music Hall, is
  considering the opportunity to expand the
  companys concession revenues. Specifically, she
  is considering whether to install a popcorn
  machine. Based on market research, she believes
  that the machine could produce incremental cash
  inflows of 1,600 per year. The purchase price of
  the machine is 5,000. It is expected to have a
  useful life of three years and a 1,000 salvage
  value. Ms. Kahn has established a desired rate of
  return of 16 percent.

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ACC 543 Exercise 24 6A Determining Net Present
Value

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• Exercise 24-6A Determining Net Present Value
  Travis Vintor is seeking part-time employment
  while he attends school. He is considering
  purchasing technical equipment that will enable
  him to start a small training services company
  that will offer tutorial services over the
  Internet. Travis expects demand for the service
  to grow rapidly in the first two years of
  operation as customers learn about the
  availability of the Internet assistance.
  Thereafter, he expects demand to stabilize. The
  following table presents the expected cash flows.
  In addition to these cash flows, Mr. Vintor
  expects to pay 8,400 for the equipment.

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ACC 543 Exercise 24 8A Determining the Internal
Rate of Return

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• Exercise 24-8A Determining the Internal Rate of
  Return Medina Manufacturing Company has an
  opportunity to purchase some technologically
  advanced equipment that will reduce the companys
  cash outflow for operating expenses by 1,280,000
  per year. The cost of the equipment is
  6,186,530.56. Medina expects it to have a
  10-year useful life and a zero salvage value. The
  company has established an investment opportunity
  hurdle rate of 15 percent and uses the
  straight-line method for depreciation. Required
  a. Calculate the internal rate of return of the
  investment opportunity. b. Indicate whether the
  investment opportunity should be accepted.
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ACC 543 Exercise 24-4A Determining the present
value of an annuity

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• Exercise 24-4A Determining the present value of
  an annuity The dean of the School of Social
  Science is trying to decide whether to purchase a
  copy machine to place in the lobby of the
  building. The machine would add to student
  convenience, but the dean feels compelled to earn
  an 8 percent return on the investment of funds.
  Estimates of cash inflows from copy machines that
  have been placed in other university buildings
  indicate that the copy machine would probably
  produce incremental cash inflows of approximately
  8,000 per year. The machine is expected to have
  a three-year useful life with a zero salvage
  value. Required a. Use Present Value Table 1 in
  Appendix A to determine the maximum amount of
  cash the dean should be willing to pay for a copy
  machine. b. Use Present Value Table 2 in Appendix
  A to determine the maximum amount of cash the
  dean should be willing to pay for a copy machine.
  c. Explain the consistency or lack of consistency
  in the answers to Requirements a b.
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ACC 543 Exercise 24-5A Determining net present
value

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• Exercise 24-5A Determining net present value
  Transit Shuttle Inc. is considering investing in
  two new vans that are expected to generate
  combined cash inflows of 20,000 per year. The
  vans combined purchase price is 65,000. The
  expected life and salvage value of each are four
  years and 15,000, respectively. Transit Shuttle
  has an average cost of capital of 14 percent.
  Required a. Calculate the net present value of
  the investment opportunity. b. Indicate whether
  the investment opportunity is expected to earn a
  return that is above or below the cost of capital
  and whether it should be accepted.
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ACC 543 Flexible Budgets Team Paper

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• Flexible Budgets Team Paper Write a paper of no
  more than 1,050 words in which you discuss
  flexible budgets. Explain the relationship
  between fixed and variable costs used in a
  flexible budget. Discuss the differences between
  static and flexible budgets and how a flexible
  budget lends itself to a cost-volume-profit
  analysis. Format your paper consistent with APA
  guidelines
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ACC 543 Reading feeds the Imagination
Uophelpdotcom

• For more course tutorials visit
• www.uophelp.com