ACC 543 Education Organization- tutorialrank.com

1. ACC 543 Assignment New Donor Presentation (modality of your choice)(New Syllabus) For more course tutorials visit www.tutorialrank.com • 10- to 12-slide presentation using a modality of your choice. Your boss request a presentation for new donors. You are to include the following:What is the mission and purpose of your organization? • Differentiate between private and government not-for-profit organizations. • What are the primary sources of funding for the organization? How are the revenues classified? Be sure to include dollar amounts. • What are the primary expenditures for the organization? In other words, how do the organizations get and spend their money. • What reports are required by FASB as far as reporting? • What issues have not-for-profits faced as far as reporting and what changes are being made in the new year? • What are the differences between reporting for governments and not-for-profit organizations? • How successful has your entity been in terms of meeting its mission and staying fiscally solvent?

2. • What reports or information will show the donors if a not-for-profit entity is financially healthy? The student should use four different sources. Each source should be cited in the text on the slides and there should be a reference slide at the end. All work submitted for grading should be original work of the student that submitted the assignment in this class. ============================================== ACC 543 Entire Course For more course tutorials visit www.tutorialrank.com ACC 543 Week 1 Individual Textbook 4.16, 4.18, 4.20 ACC 543 Week 2 Individual Textbook Exercise Ex-5.17, Case 6.55, Ex 7.21, Ex 8-25

3. ACC 543 Week 3 Individual Textbook Exercise (10.22, 11.16, 11.18, 15.16) ACC 543 Week 3 Team Assignment Capital Budget Recommendation (2 Papers) ACC 543 Week 4 Individual Textbook Exercise (22.1, 22.2, 22.5, 25.1, 25.2, 25.5) ACC 543 Week 4 Team Assignment (26.1, 26.2, 26.3, 26.7, 27.1, 27.2, 27.4, 27.5, 27.7) ACC 543 Week 5 Individual Textbook Exercise (47.2, 47.3, 47.6, 50.1, 50.6, 50.7, 45.2, 45.5, 45.6, 45.7) ACC 543 Week 5 Team Aspects of Employment and Environment Paper and PowerPoint River-Rafting Location ACC 543 Week 6 Individual Textbook Exercise (29.1, 29.2, 29.4, 30.4,31.1, 31.3, 31.6, 33.3, 33.5, 33.6, 51.1, 51.2, 51.3, 51.4, 51.5 51.6)

4. ACC 543 Week 6 Team Assignment Flexible Budgets ============================================== ACC 543 Exercise 18-17B: Process Cost System Cost of Production Report(UOP) For more course tutorials visit www.tutorialrank.com Exercise 18-17B: Process Cost System Cost of Production Report At the beginning of 2004, Dozier Company had 1,800 units of product in its work in process inventory, and it started 19,200 additional units of product during the year. At the end of the year, 6,000 units of product were in the work in process inventory. The ending work in process inventory was estimated to be 50 percent complete. The cost of work in process inventory at the beginning of the period was $9,000, and $108,000 of product costs was added during the period. Required Prepare a cost of production report showing the following. a. The number of equivalent units of production. b. The product cost per

5. equivalent unit. c. The total cost allocated between the ending Work in Process Inventory and Finished Goods Inventory accounts. ============================================== ACC 543 Week 1 Assignment Managerial Accounting for Business Decision Making (New Syllabus) For more course tutorials visit www.tutorialrank.com Q1: Doughton Bearings produces ball bearings for industrial equipment. In evaluating their financial data from the previous year, the accounting manager has determined that their unit sales price is $25 per bearing and their unit variable cost is $18 per bearing. What is the unit contribution margin per unit? Q 2: Felton Paper produces paper for textbooks. Felton plans to produce 500,000 cases of paper next quarter to sell at a price of $100 per case. Each case costs the company $80 to produce. What is the total contribution margin for next quarter?

6. Q 3: Ford Tops manufactures hats for baseball teams. For has fixed costs of $175,000 per quarter and each hat sells for $20. If the variable cost per hat is $10, how many hats must the company sell each quarter to break even? Q 4: The Cobb Clinic treats walk in patients for various illnesses. The accounting manager has estimated they have $5,000 in monthly fixed costs in addition to a $20 cost per patient. If the charge is $30 per visit, ow many visits per month does the clinic need to breakeven? Q 5: Oxicon, Inc. manufactures several different types of candy for various retail stores. The accounting manager has requested that you determine the sales dollars required to break even for next quarter based on past financial data. Your research tells you that the total variable cost will be $500,000, total sales will be $750,000, and fixed costs will be $75,000. What is the breakeven point in sales dollars? Q 6: Williams & Williams Co. produces plastic spray bottles and wants to earn a profit of $200,000 next quarter and have variable costs of $0.50 per bottle, fixed costs of $400,000, and sell the bottles for $1.00 each. How many bottles must they sell to meet this goal? Q 7: Scott Power produces batteries. Scott has determined its contribution margin to be $8 per battery and their contribution margin

7. ratio to be 0.4. What is the effect on operating profit from the sale of one additional battery? One additional dollar of sales? Q 8: ABC Audio sells headphones and would like to earn after tax profit of $400 every week. Each set of headphones costs $5 and is sold for $10. They also incur costs of $200 for rent and other fixed costs, and their tax rate is 20%. How many headphones must they sell per week to meet this goal? Q 9: Franklin Cards sells greeting cards for $2 each, and plans to sell 100,000 cards every quarter. The accounting manager has determined they must sell 80,000 cards to break even every quarter. What is the margin of safety (MOS), in units and in sales dollars? Q 10: May Clothing is a retail men’s clothing store. May's cost is $20 per shirt. The sales price is $40 per shirt. They plan to sell 400,000 shirts each year, which at this level would result in a before tax profit of $2,500,000. What is their degree of operating leverage (DOL) at this volume level? ==============================================

8. ACC 543 Week 1 Individual Textbook 4.16, 4.18, 4.20 For more course tutorials visit www.tutorialrank.com Relevant Cost and Decision Making 4.16 Make or buy Yoklic Corporation currently manufactures a subassembly for its main product. The costs per unit are as follows: Regina Corp has contacted Yoklic with an offer to sell it 5,000 subassemblies for $55.00 each. REQUIRED: 1.Should Yoklic make or buy the subassemblies? Create a schedule that shows the total quantitative differences between the two alternatives. 2.The accountant decided to investigate the fixed costs to determine whether any incremental changes would occur if the subassembly were no longer manufactured. The accountant believes that Yoklic will eliminate $50,000 of fixed overhead if it accepts the proposal. Does this new information change the decision? Show your calculations.

9. 3.Ignore the information in part (B). Now suppose Yoklic could use the capacity released under the buy alternative to make a different subassembly that it currently purchases from a vendor for $20. The manufacturing engineer believes that the company can use the existing equipment to manufacture the subassembly for $13 each (direct materials, direct labor, and variable overhead). The firm uses about 5,000 of these subassemblies. Create a schedule that shows the difference between the two alternatives. 4.18 Special order The Cone Head House sells ice cream cones in a variety of flavors. Data for a recent week appear here: The Cone Head’s manager received a call from a university student club requesting a bid on 100 cones to be picked up in three days. The cones could be produced in advance by the store attendant during slack periods and then stored in the freezer. Each cone requires a special plastic cover that costs $0.05. REQUIRED: 4.20 Outsourcing, business risk Saguaro Systems produces and sells stereo systems for MP3 players. The following information has been collected about the costs related to the systems:

10. The managers are deciding whether to outsource production to a Mexican company that has offered to produce these systems for $48 each. The managers estimate that $260,000 of Saguaro’s fixed costs could be eliminated if they accept the offer. Direct labor employees are guaranteed pay for 40 ============================================== ACC 543 Week 2 AssignmentTracking and Analyzing Costs to Enhance Decision Making (New Syllabus) For more course tutorials visit www.tutorialrank.com 1 Tasty Beverage Co. produces soft drinks, specializing in fruit drinks. They produce 5,000 cans of product per batch. Setup cost for each batch is $50 and each drink costs $0.10 to produce. What is the total cost per batch? How much would it cost to fill an order for 100,000 cans?

11. 2 Montross Lumber processes wood to be shipped to construction companies. In order to keep their products uniform, they conduct inspections on 20% of the boards produced. Inspections cost the company $10 per hour and it takes 1 minute to inspect each board. How much would it cost to fill an order for 30,000 boards 3 Orange Inc. grows cabbage. Each package shipped out contains 20 vegetables. It costs Orange $5 to put together each package and $0.10 to clean and process each vegetable. If they are discussing an order for 50 heads of cabbage, how much higher is the cost of producing 60 heads, considering package size? 4 Williams Performance Co. manufactures sports cars. After making a sale, the salesperson sends the car to be detailed before the customer takes it home. Detailing the car takes 30 minutes at a cost of $15 per hour for direct labor and $5 per car for materials. If the average salesperson sells 5 cars per day, what is the average cost per week for detailing cars? 5 Stackhouse Computing produces high performance desktop computers. Annual CGS data shows that the company spent $1,000,000 for 5,000 computers produced, and each computer requires 2 technician hours and 5 hours of direct labor. Direct labor is paid $10 per hour by the company. What is the cost of 1 technician hour?

12. 6 Haywood Printing is processing a job with the following activity rates: Activity Cost Driver Driver Rate Direct Labor Number of Hours $8 Copying Number of Copies $0.05 If this job requires 5 hours for the 1,000 copies, what is the activity based cost of the job? 7 Locke Data Processing reported expenses of $5,000,000 for indirect labor, of which $3,000,000 was for data analysis, and $2,000,000 was for data entry. Locke recorded 30,000 hours of data analysis and 100,000 hours of data entry. What are the activity based rates for each area of direct labor 8 The materials handling charge for ABC corp is $.50 per pound of finished product. What is the materials handling charge for a job that produced 10,000 units and the weight of each product was 6 pounds? ==============================================

13. ACC 543 Week 2 Individual Textbook Exercise Ex 5.17, Case 6.55, Ex 7.21, Ex 825 For more course tutorials visit www.tutorialrank.com 5.17 Job costing, service sector Consider the following budgeted data for a client job of Bob Crachit’s accounting firm. The client wants a fixed price quotation. Overhead is allocated at the rate of 100% of direct labor cost. REQUIRED: 6.55 Costs of workplace health and safety Britain’s Health and Safety Executive (HSE) is a national regulatory body overseeing workplace health and safety. In its 2007 performance report, HSE reported the following statistics: • 241 workers were killed at work. • 141,350 employees suffered serious injuries at work.

14. • 2 million people were suffering from an illness they believed was caused or made worse by their current or past work. 646,000 of these were new cases in the last 12 months. • 36 million days were lost overall (1.5 days per worker), 30 million due to work-related ill health and 6 million due to workplace injury. • £20 billion (approximately 2% of GDP) is the estimated annual cost to society of work-related accidents and ill health. 8.25 Step-down, direct, and reciprocal methods, accuracy of allocation (Appendix 8A) Software Plus Corporation produces flight and driving simulations and games for personal computers. The president has a complaint about the accounting for support department costs. He points to the following table describing the use of various support departments in the company and says, “According to this table, every department receives services from all the support departments. But I understand that only some of the support departments are bearing costs from the other support departments. Why is that?” 7.21 ABC, ABM (CMA) Applewood Electronics manufactures two large- screen television models, the Monarch, which has been produced for five years and sells for $900, and the Regal, a new model that sells for $1,140. Applewood’s CEO, Harry Hazelwood, suggested that the company should concentrate its marketing resources on the Regal

15. model and begin to phase out the Monarch model. Applewood currently uses a traditional costing system. The following cost information has been used as a basis for pricing decisions over the past year. ============================================== ACC 543 Week 3 Assignment Budgeting and Controlling Costs (New Syllabus) For more course tutorials visit www.tutorialrank.com RTI Company's master budget calls for production and sales of 18,000 units for $81,000; variable costs of $30,600; and fixed costs of $20,000. The company incurred $32,000 of variable costs to produce and sell 20,000 units for $85,000, and earned $25,000 operating income. Master budget sales volume (units) 18,000 Budgeted total sales revenue $81,000

16. Budgeted total variable costs $30,600 Budgeted fixed costs $20,000 Actual variable costs incurred $32,000 Actual production/sales volume (units) 20,000 Actual total sales revenue $85,000 Actual operating income $25,000 1. Determine RTI Company’s a. Flexible budget operating income. b. Contribution margin flexible-budget variance. c. Operating income flexible-budget variance. d. Sales volume variance, in terms of contribution margin. e. Sales volume variance, in terms of operating income. 2. Explain why the contribution margin sales volume variance and the operating income sales volume variance for the same period are likely to be identical. 3. Explain why the contribution margin flexible-budget variance is likely to differ from the operating income flexible-budget variance for the same period.

17. ============================================== ACC 543 Week 3 Exam (New Syllabus) For more course tutorials visit www.tutorialrank.com Which one of the following risks is least likely to be mitigated by project diversification? A graph of the relationship between financial risk and expected financial reward would show a curve that has a: Which one of the following identifies the rate of return required by investors to compensate them for deferring current consumption when making an investment?

18. As the perceived risk of an undertaking increases, what would be the expected effect on the risk-free rate of return and the risk premium rate of return? Which one of the following approaches to capital project evaluation is primarily concerned with the relative economic ranking of projects? Major Corp. is considering the purchase of a new machine for $5,000 that will have an estimated useful life of five years and no salvage value. The machine will increase Major's after-tax cash flow by $2,000 annually for five years. Major uses the straight-line method of depreciation and has an incremental borrowing rate of 10%. The present value factors for 10% are as follows: Using the payback method, how many years will it take to pay back Major's initial investment in the machine? Which one of the following is a strength of the payback method of evaluating an investment project? What is the investment's payback period?

19. Capital budgeting is concerned with capital investments that have which one of the following characteristics? A company invested in a new machine that will generate revenues of $35,000 annually for seven years. The company will have annual operating expenses of $7,000 on the new machine. Depreciation expense, included in the operating expenses, is $4,000 per year. The expected payback period for the new machine is 5.2 years. What amount did the company pay for the new machine? Which one of the following is not a technique or approach for evaluating capital budgeting opportunities? Using the information above, which one of the following is the payback period in years for this project? (Ignore income tax.) Which of the following statements is correct regarding the payback method as a capital budgeting technique? Which of the following statements concerning the discounted payback period approach to project evaluation is/are correct? Which of the following statements concerning the discounted payback period method of evaluating capital projects is/are correct?

20. Which one of the following is the capital budgeting evaluation approach that determines the number of periods required for the discounted cash inflows of a project to equal the discounted cash outflows? The discounted payback period approach to project evaluation is better than the payback period approach because A company purchases an item for $43,000. The salvage value of the item is $3,000. The cost of capital is 8%. Pertinent information related to this purchase is as follows: What is the discounted payback period in years? Which one of the following methods of evaluating potential capital projects would take into account depreciation expense that was non- deductible for tax purposes? Which of the following statements concerning the accounting rate of return approach to evaluating capital projects is/are correct? Lin Co. is buying machinery it expects will increase average annual operating income by $40,000. The initial increase in the required investment is $60,000, and the average increase in required investment

21. is $30,000. To compute the accrual accounting rate of return, what amount should be used as the numerator in the ratio? Phillips Company is considering the acquisition of a new machine that would cost $66,000, has an expected life of 6 years, and an expected salvage value of $16,000. The company expects the machine to provide annual incremental income before taxes of $7,200. Phillips has a tax rate of 30%. If Phillips uses average values in its calculations, which one of the following will be the average accounting rate of return on the machine? Salem Co. is considering a project that yields annual net cash inflows of $420,000 for years 1 through 5, and net cash inflow of $100,000 in year 6. The project will require an initial investment of $1,800,000. Salem's cost of capital is 10%. Present value information is present below: What was Salem's expected net present value for this project? Yarrow Co. is considering the purchase of a new machine that costs $450,000. The new machine will generate net cash flow of $150,000 per year and net income of $100,000 per year for five years. Yarrow's desired rate of return is 6%. The present value factor for a five-year annuity of $1, discounted at 6%, is 4.212. The present value factor of $1, at compound interest of 6% due in five years, is 0.7473. What is the new machine's net present value?

22. A corporation is considering purchasing a machine that costs $100,000 and has a $20,000 salvage value. The machine will provide net annual cash inflows of $25,000 per year and has a six-year life. The corporation uses a discount rate of 10%. The discount factor for the present value of a single sum six years in the future is 0.564. The discount factor for the present value of an annuity for six years is 4.355. What is the net present value of the machine? Which of the following is an advantage of net present value modeling? A project should be accepted if the present value of cash flows from the project is: The following information pertains to Krel Co.'s computation of net present value relating to a contemplated project: Discounted expected cash inflows $1,000,000 Discounted expected cash outflows 700,000 Net present value is: Tam Co. is negotiating for the purchase of equipment that would cost $100,000, with the expectation that $20,000 per year could be saved in after-tax cash costs if the equipment is acquired. The equipment's estimated useful life is 10 years, with no residual value, and would be depreciated by the straight-line method. Tam's predetermined

23. minimum desired rate of return is 12%. Present value of an annuity of 1 at 12% for 10 periods is 5.65. Present value of 1 due in 10 periods at 12% is .322. Net present value is A project's net present value, ignoring income tax considerations, is normally affected by the Smarti Co. has determined the following data in connection with its evaluation of a capital investment project: Smarti uses straight-line depreciation for capital investments of this type. Excerpts from present value tables showed the following: Using the above information, which one of the following is the present value of total estimated future cash inflows and savings? (Ignore income taxes.) An investment in a new product will require an initial outlay of $20,000. The cash inflow from the project will be $4,000 a year for the next six years. The payment will be received at the end of each year. What is the net present value of the investment at 8% using the correct factor from below? Oak Company bought a machine that they will depreciate on a straight- line basis over an estimated life of seven years. The machine has no

24. salvage value. They expect the machine to generate after-tax net cash inflows from operations of $110,000 in each of the seven years. Oak's minimum rate of return is 12%. Information on present value factors is as follows: Assuming a positive net present value of $12,000, what was the cost of the machine? Which project would provide the largest after-tax cash inflow? Net present value as used in investment decision-making is stated in terms of which of the following options? The calculation of depreciation is used in the determination of the net present value of an investment for which of the following reasons? The decline in the value of the investment should be reflected in the determination of net present value. Given a 10% discount rate with cash inflows of $3,000 at the end of each year for five years and an initial investment of $11,000, what is the net present value? The discount rate is determined in advance for which of the following capital budgeting techniques?

25. Which of the following metrics equates the present value of a project's expected cash inflows to the present value of the project's expected costs? A client wants to know how many years it will take before the accumulated cash flows from an investment exceeds the initial investment, without taking the time value of money into account. Which of the following financial models should be used? Which of the following decision-making models equates the initial investment with the present value of the future cash inflows? Which of the following events would decrease the internal rate of return of a proposed asset purchase? Polo Co. requires higher rates of return for projects with a life span greater than five years. Projects extending beyond five years must earn a higher specified rate of return. Which of the following capital budgeting techniques can readily accommodate this requirement? Which of the following limitations is common to the calculations of payback period, discounted cash flow, internal rate of return, and net present value?

26. Which of the following rates is most commonly compared to the internal rate of return to evaluate whether to make an investment? If income taxes are ignored, which of the following methods of evaluating capital investment projects includes the use of depreciation expense? Tam Co. is negotiating for the purchase of equipment that would cost $100,000, with the expectation that $20,000 per year could be saved in after-tax cash costs if the equipment is acquired. The equipment's estimated useful life is 10 years, with no residual value, and it would be depreciated by the straight-line method. Tam's predetermined minimum desired rate of return is 12%. Present value of an annuity of 1 at 12% for 10 periods is 5.65. Present value of 1 due in 10 periods at 12% is .322. In estimating the internal rate of return, the factors in the table of present values of an annuity should be taken from the columns closest to In evaluating the economic feasibility of a capital project, the discount rate (or hurdle rate of return) must be determined in advance when using the:

27. Which of the following capital budgeting techniques, if any, implicitly assumes that all cash inflows are immediately reinvested to earn a return for the company? Which of the following phrases defines the internal rate of return on a project? Neu Co. is considering the purchase of capital equipment that has a positive net present value based on Neu's 12% hurdle rate. The internal rate of return would be: Which of the following characteristics represent an advantage of the internal rate of return technique over the accounting rate of return technique in evaluating a project? I. Recognition of the project's salvage value. II. Emphasis on cash flows. III. Recognition of the time value of money. How are the following used in the calculation of the internal rate of return of a proposed project? Ignore income tax considerations.

28. Which of the following statements about investment decision models is true? When estimating cash flow for use in capital budgeting, depreciation is What is an internal rate of return? Which of the following is a limitation of the profitability index? What is the formula for calculating the profitability index of a project? If it is determined that a project investment is expected to generate $1.20 in present value for each $1.00 invested, which one of the following was most likely used to reach that conclusion? Disco is considering three capital projects that have the following costs and net present values (NPV): Which one of the projects, if any, is not economically feasible? Using the profitability index, which project, if any, would be ranked as the most desirable?

29. Which one of the following represents the formula used to calculate the profitability index for ranking projects? Which one of the following methods of evaluating investment projects is most likely to be least acceptable for making project ranking decisions? Which of the following methods should be used if capital rationing needs to be considered when comparing capital projects? Which of the following statements is correct regarding financial decision making? Which one of the following methods of evaluating investment projects is most likely to be used to rank projects competing for limited capital investment funds? On August 31, Year 1, Ashe Corp. adopted a plan to accumulate $1,000,000 by September 1, Year 5. Ashe plans to make four equal annual deposits to a fund that will earn interest at 10% compounded annually.

30. Ashe will make the first deposit on September 1, Year 1. Future value and future amount factors are as follows: Which one of the following would be the amount of annual deposits Ashe should make (rounded)? On November 1, Year 1, a company purchased a new machine that it does not have to pay for until November 1, Year 3. The total payment on November 1, Year 3 will include both principal and interest. Assuming interest at a 10% rate, the cost of the machine would be the total payment multiplied by what time value of money concept? Which one of the following kinds of tables most likely would be used to determine the current worth of five equal amounts to be received at the end of each of the next five years. Pole Co. is investing in a machine with a 3-year life. The machine is expected to reduce annual cash operating costs by $30,000 in each of the first 2 years and by $20,000 in year 3. Present values of an annuity of $1 at 14% are: Using a 14% cost of capital, what is the present value of these future savings? Which of the following changes would result in the highest present value?

31. Which one of the following sets of interest (or discount) rates will give the greater present value of $1.00 and greater future value of $1.00? On June 30, 2012, a company is preparing the cash budget for the third quarter. The collection pattern for credit sales has been 60% in the month of sale, 30% in the first month after sale, and the rest in the second month after sale. Uncollectible accounts are negligible. There are cash sales each month equal to 25% of total sales. The total sales for the quarter are estimated as follows: July, $30,000; August, $15,000; September, $35,000. Accounts receivable on June 30, 2012, were $10,000. What amount would be the projected cash collections for September? The regression analysis results for ABC Co. are shown as y = 90x + 45. The standard error (S ) is 30 and coefficient of determination (r ) is 0.81. The budget calls for production of 100 units. What is ABC’s estimate of total costs? The difference between standard hours at standard wage rates and actual hours at standard wage rates is referred to as which of the following types of variances? The production volume variance is due to

32. Which of the following scenarios would encourage a company to use short-term loans to retire its ten-year bonds that have five years until maturity? Harvey Co. is evaluating a capital investment proposal for a new machine. The investment proposal shows the following information: If acquired, the machine will be depreciated using the straight-line method. The payback period for this investment is A company purchases an item for $43,000. The salvage value of the item is $3,000. The cost of capital is 8%. Pertinent information related to this purchase is as follows: What is the discounted payback period in years? The Bread Company is planning to purchase a new machine which it will depreciate on a straight-line basis over a 10-year period. A full year’s depreciation will be taken in the year of acquisition. The machine is expected to produce cash flow from operations, net of income taxes, of $3,000 in each of the 10 years.; The accounting (book value) rate of return is expected to be 10% on the initial increase in required investment. The cost of the new machine will be

33. Assume that Trayco’s marginal tax rate is 30% and all cash flows come at the end of the year. In evaluating the decision how is the additional investment in working capital considered? Which of the following decision-making models equates the initial investment with the present value of the future cash inflows? The company has $2,000,000 of financing available for new investment projects. The investment project with the highest excess profitability index is Which one of the following methods of evaluating investment projects is most likely to be used to rank projects competing for limited capital investment funds? Axel Corp. is planning to buy a new machine with the expectation that this investment should earn a discounted rate of return of at least 15%. This machine, which costs $150,000, would yield an estimated net cash flow of $30,000 a year for 10 years, after income taxes. In order to determine the net present value of buying the new machine, Axel should first multiply the $30,000 by which of the following factors? ==============================================

34. ACC 543 Week 3 Individual Textbook Exercise (10.22, 11.16, 11.18, 15.16) For more course tutorials visit www.tutorialrank.com Static and flexible budgets for decision making: Exercise 10.22 Standard costs and variance analysis: Exercise 11.16 Direct Material Variance Exercise 11.18 Agency theory and responsibility accounting: Exercise 15.16 ============================================== ACC 543 Week 3 Team Assignment Capital Budget Recommendation (2 Papers)

35. For more course tutorials visit www.tutorialrank.com This Tutorial contains 2 Papers Capital Budget Recommendation Guillermo Furniture, a company that manufactures midgrade and high-end sofas, has just hired you as an accountant. The owner, Guillermo Navallez, has assigned you the tasks of determining which decisions provide the greatest returns. Read the Guillermo Furniture Scenario and review the Guillermo Furniture Data Sheets on your student Web site. Enter your name in cell A3 of the Income Information tab in the Guillermo Furniture Data Sheets. Submit the exact name you entered to your instructor. Obtain the number that is shown as a result for total assets on the Assets, Liabilities, and Equity In tab. Submit the number for total assets to your instructor. Differentiate among the various capital budget evaluation techniques. Explain how these different techniques would help you make your recommendation to Guillermo. Recommend a course of action based on a capital budget evaluation technique and include present value calculations as part of your recommendation. Submit your assignment as an attachment of no more than 1,050 words. ============================================== ACC 543 Week 3 Team Memo Managing earnings, denominator capacity level and ethics (New Syllabus)

36. For more course tutorials visit www.tutorialrank.com Explain how manufacturing overhead rates are constructed in conventional cost accounting systems. Speak separately about fixed versus variable overhead application rates. What key choices must be made in establishing these rates? In answering this question, you might want to discuss differences (if any) between current IRS (income tax) requirements and internal reporting purposes, and between financial reporting requirements, i.e., applicable GAAP (FASB ASC 330-10-30, previously SFAS No. 151, available using the FASB link and internal reporting purposes. Your company uses a standard cost system. As such, at the end of each period, it must "clean up" the accounts by disposing of any standard cost variances that occurred for the period. You need to educate members of the board about how the variances for fixed manufacturing overhead are disposed of at the end of the period. In your answer, pay particular attention to the following two financial-reporting issues: The requirements of FAS151 How, under absorption costing, reported earnings can be "managed" by choice of the denominator volume used to establish the fixed overhead application rate.

37. Search the Internet for the Institute of Management Accountant's Statement of Ethical Professional Practice. Which of the stated "standards" relate directly to the issue of setting (fixed) overhead application rates and the decision as to how any resulting production volume variances are disposed of for financial-reporting purposes? Be specific. ============================================== ACC 543 Week 4 Exam (New Syllabus) For more course tutorials visit www.tutorialrank.com On February 15, 1993, P.D. Stone obtained the following instrument from Astor Co. for $1,000.Stone was aware that Helco, Inc., disputed liability under the instrument because of an alleged breach by Astor of the referenced computer purchase agreement. On March 1, 1993, Willard Bank obtained the instrument from Stone for $3,900. Willard had no knowledge that Helco disputed liability under the instrument.The reverse side of the instrument is indorsed as follows:The instrument is

38. Under the Negotiable Instruments Article of the UCC, an instrument will be precluded from being negotiable if the instrument Which of the following negotiable instruments is subject to the UCC Negotiable Instruments Article? On February 15, 1993, P.D. Stone obtained the following instrument from Astor Co. for $1,000. Stone was aware that Helco, Inc. disputed liability under the instrument because of an alleged breach by Astor of the referenced computer purchase agreement. On March 1, 1993, Willard Bank obtained the instrument from Stone for $3,900. Willard had no knowledge that Helco disputed liability under the instrument.The reverse side of the instrument is indorsed as follows:The instrument is a Which of the following negotiable instruments is subject to the provisions of the UCC Negotiable Instruments Article? Below is a copy of a note Prestige Properties obtained from Tim Hart in connection with Hart's purchase of land located in Hunter, MT. This note is a Which of the following conditions, if present on an otherwise negotiable instrument, would affect the instrument's negotiability? Under the Negotiable Instruments Article of the UCC, which of the following instruments is classified as a promise to pay?

39. Under the Negotiable Instruments Article of the UCC, the proper party to whom a check is presented for payment is Under the Negotiable Instruments Article of the UCC, which of the following documents would be considered an order to pay? A $5,000 promissory note payable to the order of Neptune is discounted to Bane by blank indorsement for $4,000. King steals the note from Bane and sells it to Ott who promises to pay King $4,500.After paying King $3,000,Ott learns that King stole the note. Ott makes no further payment to King. Ott is Under the Negotiable Instruments Article of the UCC, which of the following circumstances would prevent a person from becoming a holder in due course of an instrument? Under the Negotiable Instruments Article of the UCC, which of the following requirements must be met for a transferee of order paper to become a holder? Ashley needs to indorse a check that had been indorsed by two other individuals prior to Ashley's receipt of the check. Ashley does not want to have surety liability, so Ashley indorses the check "without recourse." Under the Negotiable Instruments Article of the UCC, which of the following types of indorsement did Ashley make?

40. On February 15, 1993, P.D. Stone obtained the following instrument from Astor Co. for $1,000.Stone was aware that Helco, Inc. disputed liability under the instrument because of an alleged breach by Astor of the referenced computer purchase agreement. On March 1, 1993, Willard Bank obtained the instrument from Stone for $3,900.Willard had no knowledge that Helco disputed liability under the instrument.The reverse side of the instrument is indorsed as follows:Which of the following statements is correct? Under the Negotiable Instruments Article of the UCC, when an instrument is indorsed "Pay to John Doe" and signed "Faye Smith," which of the following statements is(are) correct? Under the Negotiable Instruments Article of the UCC, an indorsement of an instrument "for deposit only" is an example of what type of indorsement? The following note was executed by Elizabeth Quinton on April 17, 1990, and delivered to Ian Wolf: In sequence, beginning with Wolf's receipt of the note, this note is properly characterized as what type of commercial paper?

41. Under the Negotiable Instruments Article of the UCC, which of the indorser's liabilities are disclaimed by a "without recourse" indorsement? Train issued a note payable to Blake in payment of contracted services that Blake was to perform. Blake indorsed the note "pay to bearer" and delivered it to Reed in satisfaction of a debt owed Reed. Train refused to pay Reed on the note because Blake had not yet performed the services. Under the Negotiable Instruments Article of the UCC, must Train pay Reed? Ball borrowed $10,000 from Link. Ball, unable to repay the debt on its due date, fraudulently induced Park to purchase a piece of worthless costume jewelry for $10,000. Ball had Park write a check for that amount naming Link as the payee. Ball gave the check to Link in satisfaction of the debt Ball owed Link. Unaware of Ball's fraud, Link cashed the check. When Park discovered Ball's fraud, Park demanded that Link repay the $10,000. Under the Negotiable Instruments Article of the UCC, will Link be required to repay Park? Under the Negotiable Instruments Article of the UCC, which of the following requirements must be met for a person to be a holder in due course of a promissory note? The holder must be the payee of the note.

42. The following indorsements appear on the back of a negotiable promissory note payable to Lake Corp.Which of the following statements is correct? Jacobs gave the check to his son as a gift, who transferred it to Anchor for $78.00. Which of the following statements is correct? Under the Negotiable Instruments Article of the UCC, what kind of indorsement is made by the use of the words "Lee Louis"? West Corp. received a check that was originally made payable to the order of one of its customers, Ted Burns. The following indorsement was written on the back of the check:Which of the following describes the indorsement? Janice owes Jake $120,000. Jake cashes the check 45 days after receiving it. Janice's bank fails. The FDIC will cover $100,000. Janice Horton wrote a check for $50,000 to Wallace who in turn indorsed it to Halbert. When Halbert presented the check to the bank it was dishonored because of insufficient funds. Which of the following statements is correct?

43. Bart presented a negotiable demand note supposedly signed by Alice as maker to Alice for payment. Alice claimed the note was a forgery and refused to pay it. Which of the following is correct? Under the Negotiable Instruments Article of the UCC, which of the following parties has secondary liability on an instrument? Which of the following parties has (have) primary liability on a negotiable instrument? To the extent that a holder of a negotiable promissory note is a holder in due course, the holder takes the note free of which of the following defenses? Cobb gave Garson a signed check with the amount payable left blank. Garson was to fill in, as the amount, the price of fuel oil Garson was to deliver to Cobb at a later date. Garson estimated the amount at $700, but told Cobb it would be no more than $900. Garson did not deliver the fuel oil, but filled in the amount of $1,000 on the check. Garson then negotiated the check to Josephs in satisfaction of a $500 debt with the $500 balance paid to Garson in cash. Cobb stopped payment and Josephs is seeking to collect $1,000 from Cobb. Cobb's maximum liability to Josephs will be

44. A maker of a note will have a valid defense against a holder in due course as a result of any of the following conditions except On February 15, 1993, P.D. Stone obtained the following instrument from Astor Co. for $1,000. Stone was aware that Helco, Inc., disputed liability under the instrument because of an alleged breach by Astor of the referenced computer purchase agreement. On March 1, 1993, Willard Bank obtained the instrument from Stone for $3,900. Willard had no knowledge that Helco disputed liability under the instrument.The reverse side of the instrument is indorsed as follows:If Willard Bank demands payment from Helco and Helco refuses to pay the instrument because of Astor's breach of the computer purchase agreement, which of the following statements would be correct? Robb, a minor, executed a promissory note payable to bearer and delivered it to Dodsen in payment for a stereo system. Dodsen negotiated the note for value to Mellon by delivery alone and without indorsement. Mellon indorsed the note in blank and negotiated it to Bloom for value. Bloom's demand for payment was refused by Robb because the note was executed when Robb was a minor. Bloom gave prompt notice of Robb's default to Dodsen and Mellon. None of the holders of the note were aware of Robb's minority. Which of the following parties will be liable to Bloom? Under the Negotiable Instruments Article of the UCC, in a nonconsumertransaction, which of the following are real defenses available against a holder in due course?

45. A seller and buyer enter into an international contract for the sale of goods involving a large amount of money. They agree to finance the sale by a letter of credit. Which of the following is correct? Which of the following statements concerning a letter of credit is correct? Under the Documents of Title Article of the UCC, which of the following statements is(are) correct regarding a common carrier's duty to deliver goods subject to a negotiable, bearer bill of lading? Under a nonnegotiable bill of lading, a carrier who accepts goods for shipment must deliver the goods to Under the Documents of Title Article of the UCC, a negotiable document of title is "duly negotiated" when it is negotiated to Burke stole several negotiable warehouse receipts from Grove Co. The receipts were deliverable to Grove's order. Burke indorsed Grove's name and sold the warehouse receipts to Federated Wholesalers, a bona fide purchaser.In an action by Federated against Grove,

46. Under the Documents of Title Article of the UCC, which of the following terms must be contained in a warehouse receipt? Which of the following statements is correct concerning a bill of lading in the possession of Major Corp. that was issued by a common carrier and provides that the goods are to be delivered "to bearer"? Which of the following statements is correct concerning a common carrier that issues a bill of lading stating that the goods are to be delivered "to the order of Ajax"? Creditor A agreed to loan Debtor D the money for the purchase of inventory. Debtor D signed a security agreement on October 1. Creditor A filed a financing statement on the goods on October 2. The inventory was shipped FOB place of shipment on October 5. When did the security interest attach? Under the Secured Transactions Article of the UCC, all of the following are needed to create enforceable security interest except Under the Secured Transactions Article of the UCC, which of the following security agreements does NOT need to be in writing to be enforceable?

47. Under the Secured Transactions Article of the UCC, which of the following statements is correct regarding a security interest that has not attached? Under the Secured Transactions article of the UCC, when does a security interest become enforceable? Under the UCC Secured Transactions Article, which of the following events will always prevent a security interest from attaching? Under the UCC Secured Transactions Article, when collateral is in a secured party's possession, which of the following conditions must also be satisfied to have attachment? Under the Secured Transactions Article of the UCC, what secured transaction document must be signed by the debtor? Under the Secured Transactions Article of the UCC, which of the following requirements is necessary to have a security interest attach? Grey Corp. sells computers to the public. Grey sold and delivered a computer to West on credit. West executed and delivered to Grey a promissory note for the purchase price and a security agreement

48. covering the computer. West purchased the computer for personal use. Grey did not file a financing statement.Is Grey's security interest perfected? Which of the following requires a filing for perfection? Sun, Inc., manufactures and sells household appliances on credit directly to wholesalers, retailers, and consumers.Sun can perfect its security interest in the appliances without having to file a financing statement or take possession of the appliances if the sale is made by Sun to Which of the following transactions would illustrate a secured party perfecting its security interest by taking possession of the collateral? Under the UCC Secured Transactions Article, which of the following must be included in the financing statement? Mars, Inc., manufactures and sells VCRs on credit directly to wholesalers, retailers, and consumers. Mars can perfect its security interest in the VCRs it sells without having to file a financing statement or take possession of the VCRs if the sale is made to

49. The Smiths are remodeling their kitchen and want to purchase new appliances: a large refrigerator-freezer, microwave oven, dishwasher, garbage disposal, and stove-oven. Z Bank has advertised a special consumer loan rate, and AP Appliances has great discount rates on appliances. The Smiths can only pay AP Appliances 20% of the purchase price. AP Appliances' credit rates are higher than Z Bank's consumer loan rates. The Smiths sign a security agreement putting up the to-be- purchased listed appliances as security, and Z Bank issues a check for the balance payable to AP Appliances and the Smiths. Which of the following statements is correct? Under the Secured Transactions Article of the UCC, which of the following items can usually be excluded from a filed original financing statement? Jones lives in Oklahoma and is the owner of a large number of valuable antiques. Treasures Delight, located in Arkansas, is a seller of antiques. Treasures Delight is owned by Sally Delight. Delight offers to purchase all of the antiques owned by Jones paying 60% of the agreed price and, by agreement, signs a security agreement for the balance putting up her entire inventory as security. The security agreement provides for monthly payments. Which of the following is correct? Under the UCC Secured Transactions Article, what is the order of priority for the following security interests in store equipment?

50. Under the UCC Secured Transactions Article, which of the following after-acquired property may be attached to a security agreement given to a secured lender? On July 8, Ace, a refrigerator wholesaler, purchased 50 refrigerators. This comprised Ace's entire inventory and was financed under an agreement with Rome Bank that gave Rome a security interest in all refrigerators on Ace's premises, all future acquired refrigerators, and the proceeds of sales. On July 12, Rome filed a financing statement that adequately identified the collateral. On August 15, Ace sold one refrigerator to Cray for personal use and four refrigerators to Zone Co. for its business.Which of the following statements is correct? Under the UCC Secured Transaction Article, what is the effect of perfecting a security interest by filing a financing statement? Vista is a wholesale seller of microwave ovens. Vista sold 50 microwave ovens to Davis Appliance for $20,000. Davis paid $5,000 down and signed a promissory note for the balance. Davis also executed a security agreement giving Vista a security interest in Davis' inventory, including the ovens. Assuming Vista is a partnership, which of the following statements is correct? Wine purchased a computer using the proceeds of a loan from MJC Finance Company. Wine gave MJC a security interest in the computer. Wine executed a security agreement and financing statement, which was filed by MJC. Wine used the computer to monitor Wine's personal