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ACCT621 Accounting for Managers UCW


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ACCT 621 Accounting for managers

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Below are the modules in this subject

  • ACCT 621 (BON-FALL-29)
    • Introduction to the course
    • Week 1: Introduction to Accounting
    • Week 2: Canadian Tax System
    • Week 3: Capital Assets and Capital Budgeting
    • Week 4: Financial Analysis
    • Week 5: Management Accounting
    • Week 6: Job Order Costing
    • Week 7: Cost-Volume-Profit Analysis
    • Week 8: Incremental Analysis
    • Week 9: Budgetary Planning
    • Week 10: Budgetary Control
    • Week 11: Final Exam

Management accounting is the practice of identifying, analyzing, measuring, interpreting, and communicating financial information to meet an organization’s objectives. It differs from financial accounting because the main purpose of management accounting is to help the users of the company make wise business decisions.

ACCT621 Accounting for managers Individual Assignment- Lil’ Local Goodies

Sharice is the owner of a small business called Lil’ Local Goodies. She started the business two years ago, selling homemade crafts and baked goods out of her garage. Quickly, Sharice expanded to selling products made by friends and family too. Half of the proceeds from these sales go back to the producer, but Sharice gets to keep the other half. Here are some of Sharice’s numbers from the past two years, as well as projected numbers for the upcoming year:

Sales of own crafts$3,450$2,870$3,000
Sales of others’ crafts1,5306,74012,500
Sales of own baked goods2,1101,9602,000
Sales of others’ baked goods1,8405,88013,000
Total revenues8,93017,45030,500
Cost of goods sold- crafts560470500
Cost of goods sold- baked goods780650700
Meals and Entertainment0320500
Total expenses2,0402,9407,700
ACCT621 Accounting for managers

Sharice’s numbers are under the assumption that she will rent a booth at the local farmer’s market for two weeks in the summer, hiring her nephew to run it for $750 a week. The added sales front and marketing effort is expected to give Sharice’s sales volume a 20% boost next year (already included in the projections).

Sharice is considering buying a new woodworking machine that will allow her to work more quickly, increasing her crafts production by 33% each year. The machine would cost $2,000 and last four years (no salvage value). Sharice is wondering if this is a smart investment, considering her current trends/projections for craft sales. To finance the machine, Sharice can sign a $2,000 bank note due at the end of three years. Interest will be charged at a 5.50% rate and due at the end of each month.

Alternatively, a friend has offered Sharice the $2,000 for a 5% equity stake in her business. Sharice is wondering which financing option would work better for her.

Also, Sharice is weighing the pros and cons of incorporating her business. She knows the fees for incorporating will be about $1,000. Additionally, she will need to spend $2,000 a year on accounting fees, compared to only $500 now. Sharice isn’t sure what her current tax situation is like, and how it might change after she is incorporated. She wants to make sure she isn’t missing anything important- her accountant, Gary, has been extremely busy and non-responsive for the most part. Sharice recently asked Gary about home utility costs, totaling $200 a month. Sharice believes she uses 30% of her home for business purchases. She is also wondering about her vehicle costs which total $300 a month (estimated 25% business use).

Finally, Sharice wants a detailed analysis of how her business is progressing. She wants advice on her trends, business ethics, business strategy, and other relevant matters. Sharice welcomes any recommendations, as well as any questions to her which will help you better analyze her business.

Please prepare a business memo to Sharice, addressing all issues raised in this case.

Memorandum Date: 15/11/2021 To: Sharice. Lil Local Goodies From: AXY Subject: Addressing all issues raised related to busine
ACCT621 Accounting for managers
ACCT621 Accounting for managers

Management accounting includes many aspects of accounting, which is to improve the quality of information about economic activity indicators transferred to management. Management accountants use information related to sales value and revenues from goods and services produced by a company. Cost accounting is a broad subcategory of management accounting that focuses on calculating the total production costs of a company by estimating variable and fixed costs at each stage of production. This allows the company to identify and reduce unnecessary costs and maximize profits.

A simple definition of management accounting is to provide managers with the financial and non-financial information they need to make decisions. In other words, management accounting can help the directors of an organization make decisions. This can also be called cost accounting. It is a method of identifying, validating, decoding data and presenting it to managers in order to achieve business goals. The information collected includes all areas of accounting that train the competent authority to identify business objectives related to the organization’s financial costs and the decision-making process. Accountants use plans to measure the overall operating strategy of an organization. Get UCW Assignment Help now !!

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