Managerial and Cost Accounting concepts: Here we will start to distinguish between Financial Accounting and Managerial Accounting. We will begin to look at manufacturing costs since they lend themselves very well to the new concepts. In Chapter 10 we will also start to classify the costs of a business as direct material, direct labor or manufacturing overhead or period costs.
Discussion Topic: Assume you have just taken a position
as controller for a new company that manufactures and sells wrought
iron wall hangings. Although the founder of the company, who is the
president and CEO, is a great artisan, she has very limited
knowledge of accounting.
Instructions
To help your new boss better understand accounting for a
manufacturing organization, prepare a response to her in which
you:
(1) Identify each of the three manufacturing costs,
(2) Describe/define each of the three manufacturing costs, and
(3) Provide at least one example of each of the three manufacturing costs that might be used in the company you were just hired to work for.
In: Accounting
Interviewing Critique:
While in an interview, Tom was asked to describe his professional experience with his current and previous employers. During his descriptions, Tom occasionally included a few negative comments about his current and previous employers. How can negative comments impact a job interview? Your response should be at least 50 words.
There is a right and wrong way to respond to yes-or-no questions during an interview. During an interview, how would you respond to the following question: Have you ever worked for a company that generates revenue through e-commerce? Your response should be at least 50 words.
This question involves closing an interview. Near or at the end of an interview, you may be asked if you have any questions. Not responding may imply you are not interested, and a probing question about the company may imply you did not research the company. For this essay, respond to the importance of closing the interview on a positive note and share an example of a closing interview statement (your personal commercial). Your response must be at least 250 words in length.
In: Operations Management
You are the international manager of a US business that has just invented a revolutionary new personal computer that can perform the same functions as existing PCs but costs only half as much to manufacture. Several patents protect the unique design of this computer. Your CEO has asked you to formulate a recommendation for how to expand into China. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO. Please go in depth on the Pros/Cons.
Your options are:
a. to export from the US
b. to develop a Turn-key project for a Chinese firm to manufacture and market the computer in Asia
c. to acquire an existing Chinese PC manufacturer’s factory and produce it there
d. to do a greenfield investment to China
Your Suggestion – Why?(Please go in depth)
In: Economics
You are the international manager of a US business that has just invented a revolutionary new personal computer that can perform the same functions as existing PCs but costs only half as much to manufacture. Several patents protect the unique design of this computer. Your CEO has asked you to formulate a recommendation for how to expand into China. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO. Please go in depth on the Pros/Cons.
Your options are:
a. to export from the US
b. to develop a Turn-key project for a Chinese firm to manufacture and market the computer in Asia
c. to acquire an existing Chinese PC manufacturer’s factory and produce it there
d. to do a greenfield investment to China
Your Suggestion – Why?(Please go in depth)
In: Economics
In: Accounting
Mark worked as route manager for United Trucks Pty Ltd in Queensland from 2003-17. A term of his contract was that if he should leave the company, he could not engage in the trucking industry in Queensland for five years. In 2018 he registered a company called Sunshine Trucks Pty Ltd. Mark owns 99% of the shares in the company. The other 1% is owned by his brother, Greg, whom he elected as sole director and CEO. Sunshine Trucks operates from Townsville and carries goods all over Queensland. Greg also signs a contract on behalf of the company, taking out a loan of $ 2 million from Grasping Bank in 2018 as start-up capital. The company did well during 2018, 2019 and the first half of 2020, but in July 2020 was not able to repay a loan instalment of $ 100 000 owing to Grasping Bank Ltd. Mark comes to you for advice after receiving two letters: One from United Trucks Pty Ltd requiring Sunshine Trucks Ltd to cease operating in Queensland, the other from Grasping Bank Ltd threatening to sue him for $ 100 000. Advise him, citing all relevant legal authority. Please note that you should assume that the restraint of trade clause in the contract that Mark had with United Trucks is valid under the law of contract. You should therefore not discuss that issue.
Advice Mark using ILAC.
.
In: Finance
You are the international manager of a US business that has just invented a revolutionary AI equipment, but costs only half as much to current manufacture. Your CEO has asked you to decide how to expand into the China or India market. Your options are: (i) to direct export from the United States (ii) to license a China or India firm to manufacture (iii) to set up a wholly owned subsidiary in India or China with foreign direct investment. Evaluate the pros and cons of each alternative and suggest a course of action to your CEO
In: Economics
On January 1, 2020 (the first day of its fiscal year) Vaughn
Ltd. acquired a patent which gave the company the right to use a
production process. The process met the six criteria for
capitalization as an intangible asset. Below is a listing of the
events relating to the patent over the five fiscal years from 2020
through 2024:
| 2020: | ||
| ● | on January 1, acquired the patent for the production process from its inventory for a cash payment of $12,800,000, and determined that the process had an indefinite useful life. | |
| ● | on December 31, tested the patent for impairment and determined that its fair value was $13,900,000. | |
| 2021: | ||
| ● | on December 31, tested the patent for impairment and determined that its fair value was $11,500,000. | |
| 2022: | ||
| ● | on December 31, tested the patent for impairment and determined that its fair value was $13,000,000. | |
| 2023: | ||
| ● | on January 1, determined that the useful life of the patent was no longer indefinite, its carrying amount was recoverable, its estimated remaining useful life was 5 years, its estimated residual value was $0 and the pattern of economic benefits to be obtained from the patent during those 5 years was evenly spread over those 5 years. | |
| ● | on December 31, tested the process for impairment and recoverability and determined that its fair value was $1,100,000 and its carrying amount was recoverable. | |
| 2024: | ||
| ● | on December 31, tested the patent for impairment and recoverability and determined that its fair value was $0 and its carrying amount was not recoverable. |
Prepare all journal entries related to the patent for the
production process Vaughn will record from January 1, 2020 to
December 31, 2024, using the cost recovery impairment model.
In: Accounting
How will a MBA benefit a employee and its impact on a company?
In: Operations Management
Bensen Company began operations when it acquired $26,500 cash from the issue of common stock on January 1, 2018. The cash acquired was immediately used to purchase equipment for $26,500 that had a $4,500 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,000 cash. Bensen uses straight-line depreciation:
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| revenue | $8,000 | $8,500 | $8,700 | $7,500 | $0 |
Prepare income statements, statements of changes in stockholders’ equity, balance sheets, and statements of cash flows for each of the five years. Present the statements in the form of a vertical statements model.
In: Accounting