Category: Accounting

Activity-Based Costing and Cost Allocation Analysis

Posted on | by Kelvin

Activity-based costing was first developed as a part of activity-based management (ABM). ABC can be used without ABM, but it is important to understand how ABM is used to fully understand why ABC is so important.

Critical Thinking requirement

Complete the following questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements.

Consider the following information for Hamburg Corporation:

Items

Units

Beginning inventory

85,000

Units started during the year

155,000

Ending inventory

61,000

Inventory is 100% complete as to materials and 60% complete as to conversion.

Items

Materials

Conversion

Beginning costs (SAR)

425,000

686,000

Costs added during the period (SAR)

1,255,000

980,000

Using the WEIGHTED AVERAGE method:

Calculate the number of units completed during the period.
Calculate equivalent units for conversion during the period.
Calculate cost per equivalent units for materials.
Mannheim Corporation manufactures small camping tents and family camping tents. The estimated direct labor time to produce each type of tent is as follows:

Items

Small

Family

Estimated tents produced

24,500

11,000

Direct labor hours per tent

2.5

4.5

Estimated overhead for the period = 1,300,000 SAR.

Compute the overhead cost assigned to each type of tent assuming direct labor hours are used to allocate overhead costs.
The controller is not satisfied with the traditional method of allocating overhead because he believes that most of the overhead costs relate to the family tent product line because of its complexity. He, therefore, developed the following three activity cost pools and related cost drivers to better understand the costs.

Activity Cost Pools

Expected Use of Cost Drivers

Estimated Overhead Costs (SAR)

Setting up machines

1,000 setups

25,000

Assembling

90,000 labor hours

980,000

Inspection

1,200 inspections

230,000

Calculate the activity-based overhead rates for these three cost pools.
Compute the cost that is assigned to each tent using activity-based costing system, given the following information.
Expected Use of Cost Drivers per Product

Items

Small

Family

Number of setups

130

825

Direct labor hours

29,000

55,000

Number of inspections

125

1,125

What do you believe the controller should do and why?
You must show your work for credit.

 

 

Statistical Analysis of Counties in Three States

Posted on | by Kelvin

Examine the County Complete database https://brightspace.indwes.edu/content/enforced/240962-3FA2024BADM-707-01C/countycomplete.xlsx?ou=240962. Pick three states in the same area of the country as yours, one of which is your home state. Determine one variable that was not included in your workshop two analysis. Complete the following analysis:

Determine the mean, median, mode, standard deviation, and variance for the counties in all three states. How are they different? The same?
Assess each of your three variables for normality.
Determine a 95% confidence level for each of the three states for the mean value of counties.
Compare the confidence level of your home state to the actual value for your home county. Is it within the confidence limit you have calculated? If not, what could be factors causing it to be an outlier?
Write a short report that includes the results of your analysis. Include whatever graphs or statistical output you may have generated in answering these questions along with a short explanation of your analysis.

 

Business Plan for Growth: Accounting and Financial Practices for XYZ Company

Posted on | by Kelvin

Every company wants to expand its operations and increase its revenue. A business plan with a five-year strategy to increase revenues is essential for a company to grow. Business plans have many components, and for this assessment, you will develop a business plan focused specifically on accounting and financial practices for growth.

For this assignment, you will select a different company than in the prior assignments. You will develop a business plan for growth focused on accounting and financial practices to expand operations and increase revenue for your selected company. The plan will include a five-year strategy to increase revenues by 10%, and a recommendation for an organizational structure with mandates for effective corporate governance of internal controls, and practices for supporting an ethical environment. You will conduct research to identifyindustrybest practices for strategies to increase financial performance and achieve the optimal position in the market while maintaining ethical financial practices. The plan will also integrate the relevant best practices as appropriate for the selected company.

Instructions
Write an 8-10 page paper in which you:

Analyze a selected company, its operations, and its associated industry and evaluate these areas for the development of a business plan for growth to increase revenues by 10% over the next five years with ethical financial practices.
Recommend three or more well-defined improvements to corporate governance over the internal controls supported with examples of how the recommendations would impact the company’s financial statements.
The recommendations could be for the improvement of sales, justification of opening different markets, or enhancement of current operations.
Recommend two or more improvements in ethical standards from an accounting perspective that are supported with examples of how the recommendations would impact the company’s financial statements.
The recommendations could be for better financial control, reduction in the loss of product, or to increase employee collaboration.
Evaluate at least two industry financial best practices to increase financial performance, optimize the market position, and maintain ethical practices currently not applied at the selected company to propose a method for the company to integrate the best practices with the least cost possible.
Recommend at least two industry practices to apply within the current operations of the selected company that will increase financial performance, optimize the market position, and maintain ethical practices.
Provide at least four reliable, relevant, peer-reviewed references, published within the last five years that support the paper’s claims.
Write with accurate grammar, mechanics, and spelling in accordance with Strayer Writing Standards (SWS) style.

Consolidated Returns and Multistate Taxation: Analyzing Tax Rules and Challenges

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Question: Consolidated Returns and Multistate Taxation

Analyze the tax rules for consolidated returns and multistate taxation.

Scenario: STU Corporation operates in multiple states and files a consolidated federal tax return. Analyze the tax rules and challenges associated with filing consolidated returns and the impact of multistate operations on the corporation’s tax liability. Discuss apportionment and allocation methods used for state taxation.

 

 

 

 

Corporate Reorganizations and Restructuring: Tax Implications of MNO and PQR Merger

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Question: Corporate Reorganizations and Restructuring

Evaluate different types of corporate reorganizations and their tax implications.

Scenario: MNO Corporation is merging with PQR Corporation. Discuss the tax implications of this merger, considering both tax-free and taxable reorganization options. Include in your discussion the requirements for a tax-free reorganization and the potential benefits and drawbacks of each option.

 

Corporate Reorganizations and Restructuring: Evaluating Tax Implications

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Question: Corporate Redemptions and Liquidations

Examine the tax effects of corporate redemptions and liquidations.

Scenario: JKL Corporation is undergoing a partial liquidation and plans to redeem a portion of its outstanding shares. Examine the tax implications of this redemption for the corporation and the shareholders. Discuss the difference between treating the redemption as a sale versus a dividend.

 

The revenue recognition principles established by the Securities and Exchange Commission

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Review the SEC’s Selected Revenue Issues. Is therer any difference between the SEC interpretation of revenue and the FASB’s interepretation. Support your answer with examples where necessary. https://www.sec.gov/interps/account/sabcodet13.htm

 

 

 

Comparative Analysis of Revenue Reporting: A Study of Apple Inc. and Samsung Electronics

Posted on | by Kelvin

Case Information:

Select one U.S. Multinational Corporation (MNC) that reports its financial statements using U.S. GAAP and a foreign company in the same industry that reports its financial statements under any standards EXCEPT U.S. GAAP.. Prepare an Excel spreadsheet that shows the company’s revenue information presented under U.S. GAAP and under the foreign standards. Discuss and evaluate the differences in the information reported. Embed your Excel spreadsheet in your paper. Submit copies of these financial statements if you choose to do so.

Writing/Presentation Requirements:

· The body of this paper should be 2-3 pages (not including cover page, abstract or references) but not more than 4 pages.

· This research paper requires a minimum of two scholarly references: academic journals, professional journals, and/or appropriate authoritative references such as FASB Codification System, COSO, COBIT, Audit Standards, etc.

· Be sure to provide specific examples throughout your paper to back up your statements

· All research papers are submitted in APA format for sources and citations