Module Case Assignment: INTRODUCTION TO MANAGERIAL ACCOUNTING
Assignment Overview
Review the three components in the background material to answer the questions about managerial accounting and its purpose.
Case Assignment
The first case consists of two parts.
Part I
Short-Answer Questions and Definitions
1. What are the major differences between managerial and financial accounting?
2. Explain how a contribution margin (variable costing, behavioral income statement) differs from an income statement prepared in accordance with US GAAP.
3. Why are certain costs referred to as product costs? What are the major types of product costs incurred by a manufacturer?
4. Define the following terms.
o Overhead for the production departments.
o Overhead for non-production departments.
5. Explain the distinction of variable costs, fixed costs, and mixed costs.
6. Explain the difference between direct and indirect costs.
7. Distinguish between controllable and uncontrollable costs.
8. Define sunk costs and opportunity costs.
Part II
Real-World Example
Visit the website for Stitch Fix (Personal styling for everybody) and locate its last quarterly report.
Review the quarterly report to gain a general understanding of the company's primary business segments and products/services. Write an essay addressing the following questions based on your research.
• What products and services does the company provide?
• How does the financial information provided in the quarterly report (focus on the income statement) differ from financial information used for managerial accounting purposes?
• As a manager making business decisions within the company, what additional information would you need? (Remember that the income statement may be referred to using different terminology such as statement of earnings or statement of operations.) Give at least two specific pieces of information desirable to a manager, but not included in the published income statement.
Module SLP: INTRODUCTION TO MANAGERIAL ACCOUNTING
Everything Umbrella Inc. is considering producing a new type of umbrella. This new pocket-sized umbrella would fit into a coat pocket or purse.
Prepare a table with three columns to include the following information:
• Classify the costs of this new product as direct materials, direct labor, manufacturing overhead, selling, or administrative.
• Classify the costs listed as either product costs or period costs.
List of expenses incurred by Everything Umbrella Inc.
1. Cost of advertising the product.
2. Fabric used to make the umbrellas.
3. Maintenance of cutting machines used to cut the umbrella fabric so it will fit the umbrella frame.
4. Wages of workers who assemble the product.
5. President's salary.
6. The salary of the supervisor of the people who assemble the product.
7. Wages of the product tester who stands in a shower to make sure the umbrellas do not leak.
8. Cost of market research survey.
9. Salary of the company's sales managers.
10. Depreciation of administrative office building.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.