Problem: Develop a company and determine what it will produce and sell. The requirement for this company is that it be a high-end, special-order type of manufactured product.
-Develop a list of inputs along with their associated costs, such as labor, materials, and overhead. This info can be made up make it up, or do a combination of both. Be specific as to costs.
-Determine the selling price. Show calculations, and discuss why it was determined this to be a good sale price.
-How many items of the product will I need to produce to meet this sale price? How to calculate?
-Determine which of the costing systems will work best for the company. Explain why.
Explain why those not chosen were not a good fit for your company.
Explain "why not chosen" for a minimum of 3 costing methods.
-The ethical considerations of costing methods.
The Objectives:
1. Compare and contrast financial and managerial accounting.
2. Define fixed, variable, and mixed costs and explain the cost behaviors of each.
3. Demonstrate the proper accounting for job order costing and process costing.
4. Distinguish between and demonstrate application of traditional and activity based costing.
5. Differentiate between absorption costing, variable costing, and throughput costing.
6. Explain allocation of costs, including the accounting for joint products and by-products.
7. Review CVP and other methods of estimating and accounting for costs.
8. Recognize and explain ethical issues related to managerial decision-making that arise from cost accounting information.