MBAA 517 ASSIGNMENTS

MBAA 517:

After you have read the assigned textbook chapter and after you have watched the video, The Need for Managerial Accounting Information and Classifying Costs for Decision-Making, enter this forum to discuss how, the firm you work for uses managerial accounting techniques to increase profits, e.g., developing cost factors, cost accounting, developing a cash budget, or using net present value in decision-making. Some students may not be directly involved in managerial accounting. If this is the case, then you may want to discuss this question with a chief financial officer and share the information with your classmates. Some students may not want to address this discussion topic from the perspective of the firm where they work. As such, this can also be discussed from the perspective of how any firm operating in the aviation industry might address the requirements of this discussion topic.

Please refer to your Discussion Rubric to review the criteria that will be used to evaluate and grade your postings. This activity is due two days prior to the end of this module. Posting in a timely manner offers your classmates sufficient opportunity to respond to you in the Discussion Board. In turn, please respond to at least two of your classmates by the last day of this module.

PS: PLEASE RESPOND TO THE QUESTION. MY PROFESSOR HAS HIDED MY CLASSMATES POSTS UNTIL I POST MY RESPONSE, WHICH MEANS AFTER YOU ANSWER THE QUESTION, I WILL SEND YOU MY CLASSMATES POSTS FOR YOU TO ANSWER. PLEASE KEEP THAT IN MIND!

2.4)

In this module you will have an opportunity to demonstrate your understanding of cost terms and their application in the aviation industry.

For this Case Study complete the four requirements below:

1. ABC Airlines has determined both the fixed and variable costs per flying hour associated with flying each of the 10 different types of aircraft in their fleet. How might this type of information be useful in determining the costs associated with flying different aircraft on specific routes?
2. You are a management analyst for XYZ aircraft manufacturing company. Your company is considering either to purchase or lease manufacturing equipment. Identify, discuss, and be specific on five differential costs that might exist between the two options. You can develop any assumptions you want for either alternative, but if you do, they should be explained.
3. List and discuss three costs that are likely to be controllable by a city’s airport manager. List three costs that are likely to be uncontrollable by the manager.
4. Refer to Problem 2-43 at the end of Chapter 2. Build or use an existing Excel Spreadsheet and complete requirements 1 and 2. The spreadsheet must accompany the submission.

QUESTION 4 OF 2.4)

PROBLEM 2-43 FROM MY BOOK:

THE FOLLOWING DATA REFER TO LAREDO LUGGAGE COMPANY FOR THE YEAR 20X2:

SALES REVENUE $475,000

WORK-IN-PROCESS INVENTORY, DECEMBER 31 15,000

WORK-IN-PROCESS INVENTORY, JANUARY 20,000

SELLING AND ADMINISTRATIVE EXPENSES 75,000

INCOME TAX EXPENSE 45,000

PURCHASES OF RAW MATERIAL 90,000

RAW-MATERIAL INVENTORY, DECEMBER 31 12,500

RAW-MATERIAL INVENTORY, JANUARY 1 20,000

DIRECT LABOR 100,000

UTILITIES: PLANT 20,000

DEPRECIATION: PLANT AND EQUIPMENT 30,000

FINISHED-GOODS INVENTORY, DECEMBER 31 25,000

FINISHED -GOODS INVENTORY, JANUARY 1 10,000

INDIRECT MATERIAL USED 5,000

INDIRECT LABOR 7,500

OTHER MANUFACTURING OVERHEAD 40,000

REQUIRED:

1) PREPARE LAREDO LUGGAGE'S SCHEDULE OF COST OF GOODS MANUFACTURED FOR THE YEAR.

2) PREPARE LAREDO LUGGAGE'S SCHEDULE OF COST OF GOODS SOLD FOR THE YEAR.