Six Sigma Prepare a presentation (and write and executive summary, see below) based on a topic chosen from a list of different managerial accounting concepts. The presentation will be presented from the standpoint of recommending to the CEO of the firm (specifically the instructor of the class) that the firm should adopt the student’s selected concept. It is to include concepts covered in the classroom, specifically: How the concepts affects the decision making and decision control of the firm The opportunity costs of choosing the next alternative How the concept will enhance the budgeting and/or forecasting effort Any and all cost allocation implications How absorption costing could be applied to the concept How overhead is treated under the chosen concept. Other attributes of the concept that make it an attractive. This exercise is intended to illustrate the students’ comprehension of the major points of the class.
We studied: Roles and responsibility in Accounting, Internal and external accounting systems, Opportunity costs vs Accounting costs, Income statements, Decision management vs Decision control, Organizational architecture, Influence costs, Responsibility centers, Cotrollability principle, Budgets, Net Present Value, Cost Allocation Theory, Noninsulating allocations, Cost Allocations, Direct and Indirect costs, Allocation Methods (direct, step-down, reciprocal), Inefficiencies of Allocated costs, Over-and Under Applied/Absorbed overhead, and Incentives to overproduce.