Thomas Edison ACC102 all discussion

Discussion Forum 1

In Discussion Forum 1, post your response to the following discussion activity. Reply to at least two classmates' responses by the date indicated in the course Calendar.

Note: The discussion activity for Module 1 is based on Case 13.1, "Another Look at Allison Corporation," in Financial and Managerial Accounting: The Basis for Business Decisions, 16th ed., by Williams et al., page 616.

1. Read the case information given below, and then follow the instructions for completing the discussion activity.

Case 13.1, Another Look at Allison Corporation

This case is based on the statement of cash flows for Allison Corporation, illustrated in Exhibit 13-1 of the textbook. Use this statement to evaluate the company's ability to continue paying the current level of dividends—$40,000 per year. The following information also is available:

a. The net cash flows from operating activities shown in the statement are relatively normal for Allison Corporation. Net cash flows from operating activities have not varied by more than a few thousand dollars in any of the past three years.

b. The net outflow for investing activities was unusually high because the company modernized its production facilities during the year. The normal investing cash outflow is about $45,000 per year, the amount required to replace existing plant assets as they are retired. Over the long run, marketable securities transactions and lending transactions have a very small impact on Allison's net cash flows from investing activities.

c. The net cash flows from financing activities were unusually large in the current year because of the issuance of bonds payable and capital stock. These securities were issued to finance the modernization of the production facilities. In a typical year, financing activities include only short-term borrowing transactions and payments of dividends.

2. In Discussion Forum 1, post your response to the following questions. Please title your posting "Case 13.1/[Your Name]." Read and comment on your classmates’ postings.

· Based solely on the company's past performance, do you believe that the $40,000 annual dividend payments are secure? That is, does the company appear able to pay this amount in dividends every year without straining its cash position? Do you think it more likely that Allison Corporation will increase or decrease the amount of dividends that it pays? Explain fully.

· Should any of the unusual events appearing in the statement of cash flows for the current year affect your analysis of the company's ability to pay future dividends? Explain.

Use the Add a new discussion topic button to start your first posting for this activit

Discussion Forum 2

In Discussion Forum 2, post your response to the following discussion activity. Reply to at least two classmates' responses by the date indicated in the course Calendar.

Note: The discussion activity is based on Exercise 15.2, "External Financial Reports and Globalization," inFinancial and Managerial Accounting: The Basis for Business Decisions, 16th ed., by Williams et al., page 707.

1. Choose a publicly traded global company that you think you might want to invest in some time in the future.

2. Search the Internet—including the company's own Web site—for information about the company, and access its annual report.

3. In Discussion Forum 2, post your response to the following questions. Please title your posting "Exercise 15.2/[Your Name]." Read and comment on your classmates' postings.

a. In which geographical regions does the company operate?

b. What is the proportion of total sales represented by foreign sales? How has this changed over the past five to ten years?

c. What efforts has the company recently undertaken to increase or decrease globalization (e.g., joint ventures, licensing agreements, etc.)?

d. What are the company's hedging practices and policies?

e. Have any overseas activities been unsuccessful, discontinued, or resulted in asset losses? If so, what happened?

f. Overall, how aggressively do you feel this company is pursuing globalization?

Discussion Forum 3

In Discussion Forum 3, post your response to the following discussion activity. Reply to at least two classmates' responses by the date indicated in the course Calendar.

Note: The discussion activity is based on Internet Case 19.4, "Lean Manufacturing Solutions," in Financial and Managerial Accounting: The Basis for Business Decisions, 16th ed., by Williams et al., page 876.

Manufacturing Engineering, Inc., is a leading provider of lean manufacturing solutions.

1. Visit Manufacturing Engineering's Web site atwww.mfgeng.com.

2. On its Web site, Manufacturing Engineering lists several categories of projects. Choose a category from the list that interests you.

3. In Discussion Forum 2, post your response to the following questions. Please title your posting "Internet 19.4/[Your Name]." Read and comment on your classmates' postings.

a. What part of the value chain is targeted by the category?

b. What benefits can be identified from the category?

c. Do you believe target costing, activity-based management, cost of quality management, or just-in-time inventory was useful in the category you looked at? Why?

Discussion Forum 4

In Discussion Forum 4, post your response to the following discussion activity. Reply to at least two classmates' responses by the date indicated in the course Calendar.

Note: The discussion activity is based on Case 22.1, "Allocating Fixed Costs to Responsibility Centers," inFinancial and Managerial Accounting: The Basis for Business Decisions, 16th ed., by Williams et al., page 987.

1. Read the case information given below, and then follow the instructions for completing the discussion activity.

Case 22.1, Allocating Fixed Costs to Responsibility Centers

You have just been hired as the controller of Land's End Hotel. The hotel prepares monthly responsibility income statements in which all fixed costs are allocated among the various profit centers in the hotel, based on the relative amounts of revenue generated by each profit center.

Robert Chamberlain, manager of the hotel dining room, argues that this approach understates the profitability of his department. "Through developing a reputation as a fine restaurant, the dining room has significantly increased its revenue. Yet the more revenue we earn, the larger the percentage of the hotel's operating costs that are charged against our department. Also, whenever vacancies go up, rental revenue goes down, and the dining room is charged with a still greater percentage of overall operating costs. Our strong performance is concealed by poor performance in departments responsible for keeping occupancy rates up." Chamberlain suggests that fixed costs relating to the hotel should be allocated among the profit centers based on the number of square feet occupied by each department.

Debra Mettenburg, manager of the Sunset Lounge, objects to Chamberlain's proposal. She points out that the lounge is very big, because it is designed for hotel guests to read, relax, and watch the sunset. Although the lounge does serve drinks, the revenue earned in the lounge is small in relation to its square footage. Many guests just come to the lounge for the free hors d'oeuvres and don't even order a drink. Chamberlain's proposal would cause the lounge to appear unprofitable; yet a hotel must have some "open space" for its guests to sit and relax.

2. In Discussion Forum 4, post your response to the following questions. Please title your posting "Case 22.1/[Your Name]." Read and comment on your classmates' postings.

a. Separately evaluate the points raised by each of the two managers.

b. Suggest your own approach to allocating the hotel's fixed costs among the various profit centers.

Discussion Forum 5

In Discussion Forum 5, post your response to the following discussion activity. Reply to at least two classmates' responses by the date indicated in the course Calendar.

Note: The discussion activity is based on Case 24.1, "It's Not My Fault," in Financial and Managerial Accounting: The Basis for Business Decisions, 16th ed., by Williams et al., pages 1072–1073.

1. Read the case information given below, and then follow the instructions for completing the discussion activity.

Case 24.1, It's Not My Fault

Cabinets, Inc., is a large manufacturer of modular kitchen cabinets, sold primarily to builders and developers. The company uses a standard cost system. Standard production costs have been developed for each type of cabinet; these costs, and any cost variances, are charged to the production department. A budget also has been developed for the sales department. The sales department is credited with the gross profit on sales (measured at standard costs) and is charged with selling expenses and any variations between budgeted and actual selling expenses.

In early April the manager of the sales department asked the production department to fill a rush order of kitchen cabinets for a tract of 120 homes. The sales manager stated that the entire order must be completed by May 31. The manager of the production department argued that an order of this size would take twelve weeks to produce. The sales manager answered: "The customer needs it on May 31, or we don't get the business. Do you want to be responsible for our losing a customer who makes orders of this size?"

Of course, the production manager did not want to take that responsibility. Therefore, he gave in and processed the rush order by having production personnel work overtime through April and May. As a result of the overtime, the performance reports for the production department in those months showed large, unfavorable labor rate variances. The production manager, who in the past had prided himself on coming in under budget, now has very ill feelings toward the sales manager. He also has stated that the production department will never again accept a rush order.

2. In Discussion Forum 5, post your response to the following questions. Please title your posting "Case 24.1/[Your Name]." Read and comment on your classmates' postings.

a. Identify any problem that you see in the company's standard cost system or in the manner in which cost variances are assigned to the responsible managers.

b. Make recommendations for changing the cost accounting system to reduce or eliminate any problems that you have identified