Please, follow all instructions, thank you.

Course Reflection

As you reflect on this course, answer the following questions in your discussion.

Describe how you achieved each of the course competencies.

Initial Post

Provide at least one example of new knowledge gained related to each competency and explain how this new knowledge will impact your nursing practice.

Competencies:

1. Integrate leadership and management principles and attributes in nursing practice.

2. Use evidence-based practice to guide clinical reasoning and clinical judgement as a basis for nursing decision making.

3. Collaborate in healthcare delivery systems settings for improved patient outcomes.

4. Demonstrate principles of professional identity and professionalism for the nurse within the context of regulatory and practice standards.

5. Analyze agencies that influence the provision of nursing care in the healthcare system.

6. Formulate decisions based on the legal and ethical underpinnings that improve healthcare.

Complete a five-part assessment using the Assessment 1 Template. Prepare calculations, enter them into the template, and make decisions using statements for cost of goods manufactured (COGM), cost of goods sold (COGS), and cost-volume-profit analysis.

Introduction

Accounting information systems in large corporations consist of two major subsystems: a financial accounting system and a cost accounting system. One of the main distinctions between the two systems is the target audience for the information. Financial accounting information is primarily for external users of financial information, including investors, creditors, and government agencies.

Cost accounting information is used internally by managers for planning and controlling costs, continuous improvements, and decision making.

Managers must understand the relationship among revenues, costs, volume, and profit. It is the cost accounting department that supplies the data and analysis that support these managers. By understanding the types of decisions managers make and how they think about the issues of volume, pricing, and cost incursion, cost accountants can lessen managers’ concerns about the effects of their decisions on profits.

Before beginning this assessment, take time to review the following topics:

• Cost of goods manufactured.
• Cost of goods sold.
• Cost-volume-profit analysis.

Complete a five-part assessment in a supplied Excel template in which you prepare and make decisions based on statements for cost of goods manufactured (COGM), cost of goods sold (COGS), and cost-volume-profit analysis.

Preparation

Use the Assessment 1 Template [XLSX] to complete the following five parts. Each part is a different tab in the template.

• Part 1: In the template, review the T-Rex Company. Answer all three questions. Show all calculations and explain briefly.
• Part 2: In the template, review the accounting records for Joplin Products. Compute the different costs per unit. Show all calculations.
• Part 3: In the template, review the accounting records for Idaho Tool & Die. Prepare an income statement with a supporting cost of goods sold statement. Show all calculations.
• Part 4: In the template, review the scenario about Toronto Partners. Compute the volume of units and volume of sales outlined. Explain how a price increase would be required to increase profit. Show all calculations.
• Part 5: In the template, review the sales revenue and costs for Chase Corporation. Prepare a schedule computing Chase’s estimated operating profit from options A, B, and C for closing a plant. Show all calculations.

Submit the completed template for Assessment 1.

Instructions

Assessment 1 Part 1: Cost Data for Managerial Purposes

In the template, review the T-Rex Company scenario and production costs and compute the requested unit costs. Show all calculations.

Part 1 Scenario

T-Rex Company makes a variety of products. It is organized in two divisions, East and West. The managers for each division are paid, in part, based on the financial performance of their divisions. The West division normally sells to outside customers but occasionally sells to the East division. When it does, corporate policy states that the price must be cost plus 15 percent to ensure a fair return to the selling division. West received an order from East for 600 units. West’s planned output for the year had been 2,640 units before East’s order. West’s capacity is 3,300 units per year. The costs for producing those 2,640 units follow:

T-Rex Company Production CostsProduction Costs for 2,640 UnitsTotalPer Unit

Materials

$528,000

$200

Direct Labor

$253,440

$96

Other Costs Varying With Output

$168,960

$64

Fixed Costs (Do Not Vary With Output)

$2,217,600

$840

Total Costs

$3,168,000

$1,200

Complete the following:

1. If you are the manager of the West division, what unit cost would you ask the East division to pay? Show calculations.
2. If you are the manager of the East division, what unit cost would you argue you should pay? Show calculations.
3. What unit cost would you recommend for a sale of units from the West division to the East division? Explain briefly.

Assessment 1 Part 2: Cost Concepts and Financial Statement

In the template, review the accounting records for Joplin Products. Compute the different costs per unit. Show all calculations.

Part 2 Scenario

Joplin Products produced and sold 990 units of the company’s only product in June. You have collected the following information from the accounting records:

Information on Joplin Products

Item

Value

Sales Price (Per Unit)

$492.80

Manufacturing Costs:

Fixed Overhead (Monthly)

$55,440.00

Direct Labor (Per Unit)

$38.50

Direct Materials (Per Unit)

$123.20

Variable Overhead (Per Unit)

$77.00

Marketing and Administrative Costs:

Fixed Costs (Monthly)

$74,250.00

Variable Costs (Per Unit)

$15.40

Complete the following:

1. Compute:
   • Variable manufacturing cost per unit.
   • Full cost per unit.
   • Variable cost per unit.
   • Full absorption cost per unit.
   • Prime cost per unit.
   • Conversion cost per unit.
   • Profit margin per unit.
   • Contribution margin per unit.
   • Gross margin per unit.
2. If the number of units produced increases from 990 to 1,320, which is within the relevant range, cost per unit will decrease (you can check this by redoing item [1] above). Therefore, we should recommend that Joplin Products increase its production to reduce its costs. Do you agree? Explain.

Assessment 1 Part 3: Preparing Statements for a Manufacturing Company

In the template, review the accounting records for Idaho Tool & Die. Prepare an income statement with a supporting cost of goods sold statement. Show all calculations.

Part 3 Scenario

The administrative offices and manufacturing plant of Idaho Tool & Die are in the same building. The following information (in $000s) appears in the accounting records for last year:

Accounting Records for Idaho Tool & DieItem

Value

Administrative Costs

$10,560

Building and Machine Depreciation (75% of this amount is for factory)

$5,940

Building Utilities (90% of this amount is for factory)

$8,250

Direct Labor

$5,544

Direct Materials Inventory, December 31

$84

Direct Materials Inventory, January 1

$72

Direct Materials Purchases

$24,090

Factory Supervision

$3,234

Finished Goods Inventory, December 31

$390

Finished Goods Inventory, January 1

$324

Indirect Factory Labor

$5,472

Indirect Materials and Supplies

$4,110

Marketing Costs

$5,226

Property Taxes on Building (80% of this amount is for factory)

$5,040

Sales Revenue

$85,602

Work-in-Process Inventory, December 31

$74

Work-in-Process Inventory, January 1

$192

Complete the following:

• Prepare an income statement with a supporting cost of goods sold statement.

Assessment 1 Part 4: CVP Analysis and Price Changes

In the template, review the Toronto Partners scenario. Compute the volume of units and volume of sales outlined. Explain how a price increase would be required to increase profits.

Part 4 Scenario

Toronto Partners is concerned about the possible effects of inflation on its operations. The company currently sells 66,000 units at $30 per unit. The variable production costs are $15 and fixed costs amount to $770,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent and unit materials costs to rise by 10 percent in the coming year. Of the $15 variable costs, 50 percent are from labor and 25 percent are from materials. Variable overhead costs are expected to increase by 20 percent. Sales prices cannot increase more than 10 percent. It is also expected that fixed costs will rise by 5 percent as a result of increased taxes and other fixed charges.

The company wishes to maintain the same level of profit in real dollar terms. To accomplish this, profits must increase by 6 percent over the year.

Complete the following:

1. Compute the volume in units and the dollar sales level necessary to maintain the current profit level, assuming that the maximum price increase is implemented.
2. Compute the volume of sales and the dollar sales level necessary to increase profits by 6 percent, assuming that the maximum price increase is implemented.
3. If the volume of sales were to remain at 66,000 units, what price increase would be required to reach the 6 percent profit increase?

Assessment 1 Part 5: Closing a Plant

In the template, review the sales revenue and costs for Chase Corporation. Prepare a schedule computing Chase’s estimated operating profit from options A, B, and C for closing a plant. Show all calculations.

Part 5 Scenario

You have been asked to help Chase Corporation’s management make certain decisions. Chase has its home office in Oklahoma and leases factory buildings in Arkansas, Kansas, and Colorado, all of which produce the same product. Chase’s management provided you a projection of operations for next year follow:

Chase Corporation’s Projection of OperationsItemTotalArkansasKansasColarado

Sales Revenue           

$968,000

$484,000

$308,000

$176,000

Fixed Costs:

Factory

$242,000

$123,200

$61,600

$57,200

Administration

$77,000$46,200$24,200$6,600

Variable Costs

$319,000

$146,300

$93,500

$79,200

Allocated Home Office Costs

$110,000

$49,500

$38,500

$22,000

Total

$748,000

$365,200

$217,800

$165,000

Operating Profit

$220,000

$118,800

$90,2000

$11,000

• The sales price per unit is $5.

Due to the marginal results of operations of the Colorado factory, Chase has decided to cease its operations and sell that factory’s machinery and equipment by year end. Chase expects that the proceeds from the sale of these assets would equal all termination costs. Chase would like to continue serving most of its customers in that area if it is economically feasible and is considering one of the following three options:

• Option A: Expand the operations of the Kansas factory by using idle space. This move would result in the following changes in that factory’s operations:

Increase Over Kansas Factory’s Current Operations

Item

Percentage

Sales Revenue

50%

Fixed costs: Factory20%Administration10%

Under this proposal, variable costs would be $2 per unit sold.

• Option B: Enter into a long-term contract with a competitor that will serve that area’s customers. This competitor would pay Chase a royalty of $1 per unit based on an estimate of 30,000 units being sold.
• Option C: Close the Colorado factory and not expand the operations of the Kansas factory.
  • Total home office costs of $110,000 will remain the same under each situation.

Complete the following:

1. Prepare a schedule computing Chase’s estimated operating profit from each of the following options for Chase’s management:
   • Option A: Expansion of the Kansas factory.
   • Option B: Negotiation of the long-term contract on a royalty basis.
   • Option C: Shutdown of the Colorado operations with no expansion at other locations.
2. Determine the best option for Chase Corporation and explain your rationale.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

• Competency 1: Employ cost accounting information for decision making.
  • Determine the unit cost for multiple divisions.
  • Determine variable manufacturing cost per unit, full cost per unit and variable cost per unit.
  • Prepare an income statement with a supporting cost of goods sold statement.
  • Determine volume to maintain the current profit level.
  • Compute estimated operating profit for a shutdown.
• Competency 5: Communicate in a manner that is professional and consistent with expectations for professionals in the field of accounting.

Marketing Misconceptions

When you think of marketing, what sorts of ideas and images initially come to mind? Close your eyes and think about the essence of the word. What images flow in? The images will vary depending on your age, your professional background, and whether you have worked in some aspect of the marketing field. Here is a short list of perceptions commonly conjured up about marketing:

Catchy and entertaining advertisements—or perhaps the opposite, incessant and boring advertisements.

Pushy salespeople trying to persuade someone to buy it right now.

Incessant spam in your e-mail inbox and unwelcome solicitations on your smartphone.

Obtrusive tracking and recording of your every click and browsing activity online.

Famous brands and their celebrity spokespeople, such as Nike’s athlete endorsers.

Product claims that turn out to be overstated or just plain false, causing doubt about the trustworthiness of a company.

Marketing departments “own” an organization’s marketing initiative.

Marketing Misconceptions: What Marketing Is Not

MISCONCEPTION NO. 1: Marketing is all about advertising.

THE REALITY: Advertising is just one way that marketing is communicated to potential customers. Advertising is highly visible to the general public, so many people naturally think of advertising when they think of marketing. A famous axiom: Good advertising makes a bad product fail faster.

MISCONCEPTION NO. 2: Marketing is all about selling.

THE REALITY: The general public also experiences a lot of selling. Much of this day-to-day selling is in retail store environments. Selling, or more correctly “personal selling,” is simply another method of marketing communication. Marketers have to decide on a mix of marketing communication approaches that (in addition to advertising and personal selling) might also include public relations/publicity, sales promotion, and direct marketing.

MISCONCEPTION NO. 3: Marketing is all fluff and no substance.

THE REALITY: Yes, some aspects of marketing are inherently fun and glitzy. Hiring Kevin Durant as a celebrity spokesperson had to be a real thrill for everybody at Nike, not to mention the pleasure and fun it gave Nike fans. But marketing also has aspects that involve sophisticated research, detailed analysis, careful decision making, and thoughtful development of strategies and plans. For many organizations, marketing represents a major investment and firms are naturally reluctant to invest major resources without a reasonable level of assurance of a satisfactory payback.

MISCONCEPTION NO. 4: Marketing is inherently unethical and harmful to society.

THE REALITY: Marketing is no more inherently unethical than other business areas. The extreme corporate financial misdeeds that led to the Great Recession of the late 2000s show that to be true. However, when some element of marketing proves to be unethical (or even illegal), it tends to be visible to the general public. Untrue advertising claims, arm-twisting sales tactics, and nonenvironmentally friendly product packaging are a few very visible examples of marketing not behaving at its best.

MISCONCEPTION NO. 5: Only marketers market.

THE REALITY: Everybody does marketing. Everybody has a stake in the success of marketing. Regardless of your position in a firm or job title, learning how to do great marketing is a key professional asset. People with strong marketing skills achieve greater success—both on the job and off. If you’ve never thought of yourself in the context of being a “personal brand” that needs to be effectively communicated, just consider how useful such an approach could be in job seeking or positioning yourself for a promotion.

MISCONCEPTION NO. 6: Marketing is just another cost center in a firm.

THE REALITY: The mind-set that marketing is a cost, rather than an investment, is deadly in a firm because costs are inherently to be reduced or avoided. When management doesn’t view marketing as earning its keep—that is, marketing being able to pay back its investment over the long term—it becomes very easy for firms to suboptimize their success in the long run by avoiding investment in brand and product development in favor of cutting costs. This is the classic argument that successful firms must simultaneously monitor costs to ensure short-term financial performance while also investing in marketing to ensure long-term competitive strength.

You work for SunRize, an organic sports drink company, and you have been asked to do a competitive analysis to see where your company’s product compares to Gatorade sports drinks.

Based on your findings write a 1 page (minimum) comparing the competitors that you researched. Be sure to appropriately cite your sources of information.