ACCT10003 Lecture 7: Lecture 1_online(2)

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sapphirekangaroo226

23 Aug 2017

School

University of Melbourne

Department

Accounting

Course

ACCT10003

Professor

Freeman

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Document Summary

Feilian wang: the contact information can be found on. 1. 5 hour (approx) problems set or case discussions. 1. 5 hour (approx) introduction to new material: subject web page http://www. lms. unimelb. edu. au. Group assignment of not more than 3000 words: five online tests, end-of-semester exam. 3 hour exam, a pass in the final exam is required to pass the subject. Please consult the subject guide and assignment handout for more specific details regarding the assessment. Class participation: just attending seminars earns no marks. Your seminar leader will evaluate your participation based on the official registration list. Please follow the registered stream of seminar: marks awarded for: Engagement in class discussion asking questions, contributing ideas. Assignment: group members: 4 students, groups could be formed by students from different streams. Online registration for the group (until august 18) All should be done by only one group member: questions about the group assignment have to be posted on lms discussion board.

Related Questions

Managerial Accounting

Break-even analysis for management education. The dean of theGraduate School of Management at the University of California atDavis was considering whether offer a particular seminar forexecutives. The tuition was $650 per person. Variable costs, whichincluded meals, parking, and materials, were $80 per person.Certain costs of offering the seminar, including advertising theseminar, instructorsâ fees, room rent, and audiovisual equipmentrent, would not be affected by the number of people attending(within a ârelevant rangeâ). Such costs, which could be thought ofas step costs, amounted to $8000 for the seminar.

In addition to these costs a number of staff, including the deanof the school worked on the program. Althoug the salaries paid tothese staff were not affected by offerering the seminar, working onthe seminar took these people away from other duties thus creatingan opportunity cost estimated of $7,000 for this seminar.

Given this information, the school estimated the break-evenpoint to be ($8,000 + $7,000)/($650 - $80) = 26.3. If the schoolwanted to at least break even on this program it should offer theprogram only if it expected at least 27 students to attend. Write areport to the dean that evaluates the quality of this analysis. Inparticular focus on concerns about the accuracy of the data and thelimitations of cost volume profit analysis.

Chu and Company organizes seminars and other events for companies and professional associations. Until recently, the firm organized only large events (average of 750 persons each) and had a volume of 20 seminars a year. In past year, the firm increased its scope to include smaller seminars of 100 persons each as well. While this action increased total expenses to $309,000 per year. The owner and CEO believed the action to be profit enhancing. As evidence, Mr. Chu points to the rapid growth of the small seminars (100 persons per seminar, 50 seminars in a year), without cutting into the number of large seminars.

1-1. When the firm only offered large seminars, the owner determined the price to charge the conference organizers by computing a cost per participant and adding a 40% markup. He continued this scheme even after he included small seminars to the product line. Under this scheme, determine the price per average large seminar and average small seminar.

1-2. One of the seminars the owner had organized was on activity-based costing. The owner caught fragments of the talk and wondered if the lessons apply to him. As a preliminary cut, he figures that costs per participant (mailings, preparing nametags, etc.) amount to $225,000 per year. The remainder of the $84,000 per year relates to coordinating with the hotel and caterers, obtaining AV equipment, hanging banners, etc. Using ABC, determine the price per large seminar and average small seminar.

blackcod263

3-1. When the firm only offered large seminars, the owner determined the price to charge the conference organizers by computing a cost per participant and adding a 40% markup. He continued this scheme even after he included small seminars to the product line. Under this scheme, determine the price per average large seminar and average small seminar.

3-2. One of the seminars the owner had organized was on activity-based costing. The owner caught fragments of the talk and wondered if the lessons apply to him. As a preliminary cut, he figures that costs per participant (mailings, preparing nametags, etc.) amount to $225,000 per year. The remainder of the $84,000 per year relates to coordinating with the hotel and caterers, obtaining AV equipment, hanging banners, etc. Using ABC, determine the price per large seminar and average small seminar.

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ACCT10003 Lecture 7: Lecture 1_online(2)

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