Essay Advanced Managerial Accounting

Assess the degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits.

Because it is the comparison of income, the loss of Deyonne cannot be deducted from the total amount of his income.

Financial Statement Analysis Project -- A Comparative Analysis of Kohl’s Corporation and J.C. Penney Co

Life-cycle costing is an economics tool to assess the total cost of a product. Another purpose for this tool, as a management decision tool, for comparing different parts conflicts by concentration on facts, money and time. By using Life-cycle costing, total cost of the product can be calculated over the total span of product life cycle. All parties on this project, such as product suppliers, consumers and owners are benefit from LCC.

16) Before these materials are used to manufacture its cars, Toyota classifies steel, glass, and plastic as

12). Objectives of the ABC cost system that the standard cost system did not cover was “to improve product cost accuracy and optimize the product mix as quickly as possible in order to help improve GEIs unsatisfactory financial performance. The long-term objective was to evolve toward the practice of Activity-Based Management (ABM). More specifically, GEI anticipated that the ABC data could be used to help its product engineers project the cost impact of product design changes, and to help its process engineers and operations managers identify and prioritize process cost-reduction opportunities” (Brewer et al., 2003, para. 13). ABC costing systems offered a better solution for GEI because, “GEI created its own customized ABC software called ACCURATE to capture the data inputs, interface with the standard cost subsystem, and calculate product costs” (Brewer et al., 2003, para. 20). After the ABC system was implemented, “There was a strong consensus across the plants that the ABC system resulted in both improved product-cost accuracy and greater product-cost visibility relative to the direct labor-based system. In spite of the lack of training, nonaccounting personnel intuitively believed that ABC captured the economics of the business better than the labor-based system. At a strategic level, this contributed to better marketing and product-mix decisions, and at the plant level, ABC improved relations with GEI

Also along those lines, advertising should not be increased by $200,000 because of the fact that the managers are already experiencing large losses. Increasing the advertising budget by $200,000 increases the breakeven sales by $416.69, thus it further increases their total expenses and causes net income to decrease. It is not guaranteed that pouring a large amount of money into advertising would increase their sales and since the company has just experienced a loss almost double the income of the last normal year, 2004; it would not be

with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was

Capstone projects for graduate Master's of Accounting programs come in every shape and form. These projects are designed to synthesize the knowledge gained throughout the degree program. They require the student to demonstrate their mastery of core course competencies. Students usually assess issues, observe operations, conduct research and arrive at recommendations for changes or improvements. Here are five potential projects for accountancy students.

The Life Cycle Assessment process comprises four main stages: goal and scope definition, inventory analysis, impact assessment, and interpretation [2,3].

When a building is constructed, along with the cost for building the structure there are various other costs that are taken into consideration for the total cost of the structure. There is the ownership cost, cost of purchasing the land, operating the building, maintaining it so that the building sustains for a long time and disposing of objects that are no more functional. This means that along with knowing the cost of constructing a structure, it is absolutely necessary for us to consider the life-cycle cost of the building.

Tremendous pressure is placed upon accountants and executives to provide favorable financial conditions of their organization (Sherman & Young, 2001). As such, accounting practices are continually a source of question and concern for many organizations in reporting profits and corporate financial information to shareholders, stock markets, and government filings. Hence, the role of the ethical accountant and executives becomes crucial to the continued success and operation of the organization. Consequently, pitfalls or minefields of questionable accounting practices must be avoided.

Life Cycle Costing (LCC) was originally designed for investment purposes in the U.S. Department of Defence [7]. The importance of LCC for the U.S. Department of Defence was shown by the fact that the operational costs regarding to weapon systems, where 75% of the

The BET metric brings together three critical elements in a single measure which makes for an effective and efficient product development process. The BET tracks the entire cost of the design and development process so the company utilizing the BET can break even on the RD&E process. Secondly, BET stresses profitability. Stressing profitability encourages different personnel to work together to develop a product that is attractive to customers, at a cost that enables the company to earn a profit that can repay the product development investment cost. Lastly, BET is denominated in time. By encouraging the launch of new products faster than their competition companies can achieve higher sales thus having the capability of repaying the product development invest sooner.

The concept of total cost of ownership or TCO (Cavinato 1991, 1992), life cycle costing (Jackson and Ostrom 1980), product life cycle costs (Shields and Young 1991), and total cost of (Ellram and Siferd 1993) are all related. There is no unique definition of TCO, since the meaning of TCO is dependent on individual and function of organization (Ellram, 1994).