ACCG101 Lecture Notes - Lecture 12: Budget, Sales Operations, Contribution Margin

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scarletsquirrel639

19 Jun 2018

School

Macquarie University

Department

Accounting and Corporate Governance

Course

ACCG101

Professor

Rajni MALA

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CVP Analysis II & Budgeting

(Ch. 11 & 12)

ACCG101 –Week 12

2015 Session 1 –Stanley & Rajni

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Learning Objectives

CVP Analysis II

1. explain break-even point and identify the three methods of

determining the break-even point (pp. 475–7)

2. explain the application of a margin of safety in break-even analysis

(p. 477)

3. apply break-even analysis to determine target sales and target

profit (pp. 477–8)

4. explain how changes in certain factors affect profits (pp. 478–81)

5. explain how CVP analysis is used with multiple products (pp. 481–

6. explain variations between planned and actual contribution margins

using sales price, sales volume and variable expense variances

(pp. 482–3).

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Learning Objectives

Budgeting

1. explain the role of budgeting in the planning and control functions

of management (p. 501)

2. describe the benefits of budgeting (pp. 503–4)

3. define a master budget and distinguish between operating budgets

and financial budgets (pp. 504–7)

4. explain the significance of the income/sales forecast in budgeting

(pp. 507–8)

5. prepare and interpret a set of operating and financial budgets within

a master budget for a retail or manufacturing entity (pp. 515–28)

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Document Summary

Cvp analysis ii: explain break-even point and identify the three methods of determining the break-even point (pp. 475 7: explain the application of a margin of safety in break-even analysis (p. 477, apply break-even analysis to determine target sales and target profit (pp. 477 8: explain how changes in certain factors affect profits (pp. 478 81: explain how cvp analysis is used with multiple products (pp. 2: explain variations between planned and actual contribution margins using sales price, sales volume and variable expense variances (pp. Budgeting: explain the role of budgeting in the planning and control functions of management (p. 501, describe the benefits of budgeting (pp. 503 4: define a master budget and distinguish between operating budgets and financial budgets (pp. 504 7: explain the significance of the income/sales forecast in budgeting (pp. 507 8: prepare and interpret a set of operating and financial budgets within a master budget for a retail or manufacturing entity (pp.

Related Questions

Expand your analysis of a topic covered in chapters 10-16 into a1 to 2 page APA style paper. Include your assessment of thetopics%u2019 application in managerial accounting. Includeexamples

The topics are ch 10 An Introduction to managerial Accounting

ch 11 Cost behavior, Operating leverage and ProfitabilityAnalysis

ch 12 Cost Accumulation, Tracing and Allocation

ch 13 Relevant information for special decisions

ch 14 Planning for profit and cost control

ch 15 Performance Evaluation

ch 16 Planning for capital investments

sapphireseal595

Paul Stanley specializes in manufacturing motorcycle helmets.During the current period, the following costs were incurred.

For each cost, indicate whether the cost would be considered tobe DM--direct material; DL--direct labor; OH--factory overhead; orPC-period cost.

1. Maintenance costs on factory building _______

2. Factory manager's salary ________

3. Advertising for helmets ________

4. Sales commissions ________

5. Depreciation on factory building ________

6. Rent on factory equipment ________

7. Insurance on factory building ________

8. Plastic used to make helmet ________

9. Utility costs for factory ________

10. Supplies for general office ________

11. Wages for assembly line workers ________

12. Depreciation of office equipment ________

13. Glue and thread used to make the helmet ________

14. Wages of factory janitor ________

limeyak572

Cost" of tardiness

Under the decimal system of computing time work at ABC Company, office workers who are tardy are "docked" according to the schedule below:

Minutes Late in Ringing In	Fractional Hour Deducted
1 through 6	1/10
7 through 12	2/10
13 through 18	3/10
19 through 24	4/10
etc.

The regular hours of work, Monday through Friday, are from 7:30 to 11:30am and from 12:30 to 4:30pm. During one week, James Johnson, who earns $12.95 an hour, reports in and checks out as shown below. Employees are not paid for ringing in a few minutes before 7:30 and 12:30 nor for ringing out a few minutes after 11:30 and 4:30.

Day	Morning		Afternoon
	In	Out	In	Out
M	7:28	11:31	12:50	4:31
T	7:35	11:30	12:30	4:30
W	7:44	11:33	12:27	4:32
R	7:27	11:31	12:32	4:33
F	7:34	11:32	12:40	4:30

Refer to the partial time card and compute:

a) The hours worked each day:

b) The total hours worked:

c) The gross earnings for the week:

sangriaporcupine644

ACCG101 Lecture Notes - Lecture 12: Budget, Sales Operations, Contribution Margin

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