Keep homework 6 and homework 5 on separate word.
Homework 6
A. Read and complete the self-graded questions for ch 17, 18, 19, and 20 at http://www.principlesofaccounting.com/
The most important aspect of this write-up is to document your understanding of the week’s concepts!
Remember all submissions and postings in our class must be in your own words. Deliverables are to be single-spaced with double spacing between paragraphs. These are business reports. Thus, proper spelling, grammar, and professional writing are expected. Your report submission serves as your new hire’s eight-week rotation report to your supervisor regarding the knowledge learned for this week’s material related to accounting and financial reporting.
B. At this point, you can complete your SEC 10-K project as we have completed our studies of financial accounting related to the financials. This week we begin studying another area of accounting: managerial accounting.
Managerial accounting uses accounting and financial information for decision-making.
What key concepts do you learn from accounting and financial information for managerial decision-making as described in PoA chapters 17, 18, 19, and 20?
Have you previously studied break-even analysis in an economics course? What does break-even analysis indicate to managers? How can managers use break-even analysis for decision-making? Can this be used for pricing decisions? What types of managerial decisions are supported by break-even analysis?
Complete the report below as a Word document and submit it in the Assignment Folder for week 6 Homework.
Additionally, here are some topics to consider:
What is the difference between financial accounting and managerial accounting? Who are the intended users?
How does viewing costs from different perspectives help managerial decision-making?
Discuss the differences between product and period costing systems.
When do costs of producing a product become an expense, impacting profits?
What topic(s) gave you trouble this week (if any)?/What topic(s) do you feel you were able to grasp? Post questions in the homework discussion thread!
Operations:
What products does your company make and sell?
Do they manufacture their products or purchase from others?
Trends in revenues and impact on inventory and accounts receivable:
Are sales increasing or decreasing year to year?
How does this relate to changes in inventory and accounts receivable?
Business environment:
What issues might your company experience relate to risk? Search your company’s PDF version of the SEC 10-K for the word risk. Are other companies and brands under your corporation’s control; locations where they operate; and other big picture business concerns?
Income Statement costs:
What are the costs reported as line items on the income statement? Consider how these relate to the operations of the company. Are they increasing with sales or other changes?
You might also consider the concept of competitive advantage. Companies must disclose certain financial information to comply with good business practices. How could this impact their competitive advantage concerning competitors?