...Memorandum 1. As per your request I have laid out the advantages and disadvantages of partnerships and corporations 2. A corporation has several advantages for a business. They have a separate legal existence so that the corporation, not the stockholders, may borrow money, buy, own, and sell property, and it may sue or be sued. The stockholders also have a limited liability in a corporation. The personal assets of the owners may only be claimed by creditors if fraud has occurred. A corporation has transferable ownership rights. This means that it is shares of capital stock that give ownership, and that stockholders can dispose of part or all of their interest in a corporation buy selling their stock. Also, a corporation is able to acquire capital easily through issuance of stock. A corporation has a continuous life that is not affected by the withdrawal, death, or incapacity of a stockholder, employee, or officer. Also, in a corporation, management is more professional because the owner’s delegate the tasks of managing the company to a board of directors. 3. There are also disadvantages for a business to operate as a corporation. First, although the ability to elect professional managers to the board of directors is an advantage, it also separates ownership from management. Some owners like to have an active role in managing the company, and a corporation does not allow that. Corporations also have government regulations that they must follow. This is to protect...
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...ACCT 221 Principles of Accounting II Final Exam Answers Follow Link Below To Get Tutorial https://homeworklance.com/downloads/acct-221-principles-of-accounting-ii-final-exam-answers/ ACCT 221 Principles of Accounting II Final Exam Answers Part A. On January 1, 2014, Flip Corporation had 560,000 shares of $1 par value common stock issued and outstanding. There was a $3,000,000 balance in the Retained Earnings account at the beginning of the year. During the first quarter of the year, the following transactions occurred: Jan. 8 Issued 40,000 shares of its own common stock for $400,000. Jan. 18 Declared a cash dividend of $1 per share to stockholders of record on Jan. 10. Jan. 31 Paid the $1 cash dividend declared on Jan. 18. Feb. 2 Purchased 3,000 shares of its own common stock for the treasury at $11 per share. Feb. 14 Sold 2,000 shares of the treasury stock purchased on Feb. 2 for $12 per share. March 25 Declared a 2 for 1 stock split on outstanding shares. Instructions Prepare journal entries to record the above transactions. Part B. The following information is available for Flip Corporation for the year ended December 31, 2014: Beginning retained earnings $ 340,000 Cost of goods sold 620,000 Declared cash dividends 50,000 Operating expenses...
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...pass the final test if I wanted to pass Math class because my in-class grades were not good, and the proportion of the final test took 30% of the total. The conflicts between my mind and heart made me confused because the trade-off costs at that time were the same. In the end, instead of spending time to make that silly decision, I decided not to cheat on the final test and tried my best to finish the exam. Consequently, I got a B plus in total grade and also I realized that if I did cheat on the final test, I would be caught by supervisors. Each job will have their codes of ethics in which professional workers need to qualify in order to maintain the integrity of a profession. Somehow, I believe that the codes of ethics of doctors and accounting are the most relevant principle in which they will have the similarities and differences in two principles. Firstly, both codes of ethics have the restrictions and teach people how to do the right things. For example, accountants need to be loyal to the company while doctors should do the same with their patients. Also, doctors and accountants should always respect the laws and have the responsibilities of their jobs and the rights of customers. To maintain the...
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...Phone: 1-877-221-5800 Fax: 1-866-347-7383 Mikeja Cherry 10250 Prince Place apt. 105 Upper Marlboro, Maryland 20774 To Whom It May Concern: This letter is to verify that Mikeja Cherry is enrolled in a program of a study at AIU Online in the Bachelor's (BBA) - Business Administration program that began on Monday, October 06, 2014, with an expected graduation date of Sunday, December 13, 2015. Enrollment Status:Active Current GPA :3.75 Code COMP102 SCIE206 SCIE210 ECON220 ECON224 SSCI210 HUMA215 SCIE207 BUSN311 SCIE211 ACCT310 ACCT311 MGMT315 FINA310 ACCT420 MGMT305 ACCT450 ACCT440 ACCT315 ACCT435 ACCT430 MGMT499 ACCT320 ORNTU ORNTU SCIE206-C ECON220-C SCIE210-C ECON224-C SSCI210-C ClassName Introduction to Computers Lab Biology Environmental Science Microeconomics Macroeconomics Sociology Topics in Cultural Studies Biology Lab Quantitative Methods and Analysis Environmental Science Lab Managerial Accounting Principles of Financial Accounting Survey of Human Resource Management Financial Management Cost Accounting Management Information Systems Business and Professional Ethics for Accountants Accounting Information Systems Intermediate Accounting I Auditing Taxation Program Capstone Intermediate Accounting II Orientation Orientation Biology Microeconomics Environmental Science Macroeconomics Sociology Start date 09/08/14 10/06/14 11/10/14 11/10/14 01/05/15 01/05/15 02/09/15 03/23/15 03/23/15 04/27/15 06/08/15 06/08/15 07/20/15 08/24/15 08/24/15 10/05/15 11/09/15 11/09/15...
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...INTERMEDIATE ACCOUNTING I (ACC 221) 21 Aug 2013 - 15 Oct 2013 TEACHER: Dr. Joseph L. Ilk, CPA, CMA, CVA, CPCM TELEPHONE: Office: (703) 805-4473 Home: (540) 582-6008 E-mail: jilk@nvcc.edu If you e-mail me, please put “ACC 221" and either "E40W" or "E80W" ” in the subject line. If you do not I will not recognize the e-mail and will delete the file. The student needs to put their First and Last Name in the e-mail so I know who it came from. OFFICE HOURS: Mon-Fri 8:00 p.m. - 9:00 p.m.I check my e-mail (jilk@nvcc.edu) every day. NOVA IT Helpdesk: (703) 426-4141 CONNECT HELPDESK: (800) 331-5094 PRE-REQUISITES: ACC 212 - Principles of Accounting II I. THE COURSE: ACC 221, intermediate accounting covers accounting principles and theory, including a review of the accounting cycle and accounting for current assets, current liabilities, and investments. Introduces various accounting approaches and demonstrates the effect of these approaches on the financial statement users II. SCOPE: The study will cover but not be limited to the following areas: Theoretical structure of financial accounting Time value of money Review of the accounting process Cash and receivables Balance sheet Inventories Income statement Plant, property, and equipment Cash flow statement Investments Income measurement and profitability analysis III. Course Learning Objectives: * Comprehend the environment and theoretical...
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...Costing Method: The excel document title, “JET2 Task 1-4 Workbook” and tabs ‘Task 4 Cost-Volume-Profit’, and “Task 4 Activity Based Costing” is where the information is derived from and recommendations will be made based off of the information in these tabs. The excel document title, “JET2 Task 1-4 Workbook” and tab ‘Task 4 Cost-Volume-Profit’ highlights two unit costs methods: traditional and activity based. Each unit cost method will be analyzed and a recommendation will be made regarding which costing method should be used by Competition Bikes. Traditional method to figure out costs- this method computes the overhead cost of titanium bikes at $239,020 and the overhead costs of carbonlite bikes at $232,380 for a total overhead cost of $471,400 ($239,020 + $232,380= $471,400). Again this information was derived from the excel document titled, “JET2 Task 1-4 Workbook” and by clicking on tab ‘Task 4 Cost-Volume-Profit’ and by viewing the second half of the page, looking at the summary of traditional and carbonlite overhead costs. Once the overhead costs are known the direct costs for each bike will be added to that number. So for titanium bikes the direct cost is $402,300 plus the overhead cost $239,020= $ 641,320 for titanium bikes. For carbonlite bikes the direct cost is $447,000 + $232,380= $679,380. The $641,320 for the titanium bikes is considered the total cost and the $679,380 is considered the total cost for the carbonlite bikes. Take the total cost for each bike...
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...to lifelong success. It’s all about opportunity. Accounting professionals can work in any sector, anywhere in the world. And when you choose CGA, you’ll gain the leadership, problem-solving and technical skills that are sought after by organizations in the private, public and not-for-profit sectors. The CGA Program of Professional Studies gives you the tools to succeed in business, no matter where your career takes you. You’ll enter the workforce with the applied knowledge and demonstrated expertise that employers want, including specialized technical knowledge, sectorspecific competencies, problem-solving skills and the ethical integrity to lead. CGA’s competency-based curriculum is simply your best way to prepare for a rewarding career in financial management. Flexible study options and the freedom to choose the career you want CGA is all about choice. You choose the professional-studies path and real-world experience that best match your career goals and interests. We give you the skills and freedom to work in any type of organization, in any industry, at any level of management. With a CGA designation, your opportunities—both professional and personal, at home and around the world—are limitless. Take your place as a highly respected member of the business world. Karmen Rempel, CGA Manager Grant Thornton LLP Vancouver, British Columbia Why CGA? There are many reasons why CGA is the fastest-growing accounting designation in Canada. With CGA, you can: 1. Pursue...
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...estimated with the total quantity of each driver’s allocation base. When the driver’s allocation base is established the cost of each activity is determined. Then the cost to cost objectives are established. Activity based costing focuses on the company’s activities. Utilizing the measures the cost of the products and services are then determined. Activity based cost allows for a more accurate forecasting of the future cost of the product and service. Product cost will be more time consuming utilizing activity based costing, but it provides more accuracy of actual cost. Activity based costing will assist in making the profit margin increase in making better decisions for pricing. Activity based costing does not replace traditional accounting. The company can have an accurate time line of cost drivers for accumulated cost and resources needed. Management will be able to track revenue and view how to make the product profitable. Activity based costing for overhead analysis has identified six items with the cost. Identified items were factory setup for...
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...Summary Report for Vice President Western Governors University A1. To: Vice President The following summary will provide information as to why Competition Bikes, Inc. should switch its costing method from a traditional costing system to activity based costing. The traditional costing system is used by many corporations and allocates production overhead to the units manufactured. Companies that utilize the traditional costing method typically believe that the volume metric is the factor that drives the manufacturing overhead costs. The traditional costing system does not accurately represent the manufacturing costs that are affiliated with the production of an item. It is designed more so for departmental focus, not process focus and focuses on cost incurred not cause of costs. On the contrary, activity based costing is designed to assign costs to activities. ABC is becoming more widely used since companies are growing more complex and need to allocate increasingly huge indirect costs to the correct area or activity. Simply put, activity-based costing is a process where costs are assigned due to the cause and effect relationship between costs and the activities that drive costs. Traditional costing systems have a tendency to assign indirect costs based on something easy to identify (such as direct labor hours). This method to assigning costs can be very inaccurate, as there is not necessarily a relationship between the costs that are being assigned, and the activity...
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...Harvard Business School ftess, 1987) pp. 269. Given the reaction that this book has caused in the management accounting milieu, it seems destined to play an important role in the direction that teaching and research may adopt in the near future. In fact, the accounting literature is already witnessing an increasing number of articles regarding the lack of relevance of management accounting systems (MAS) in the decision making process of the firm. The book of Johnson and Kaplan (J&K) is implicitly divided into three parts. Part I—^The Rise of Management Accounting, chapters 2 through 5, provides an interesting overview of the evolution of management accounting in the United States from the 1880s through the 1920s. According to the authors, MAS were developing and adapting to management's needs, providing relevant, accurate, and timely information. Part II—The Fall of Management Accounting, chapters 6 through 9, analyses and explains the loss of relevance of MAS. Unlike some historians, J&K assert that this was not due to the fact that financial accounting unduly influenced managerial accounting, but to the prohibitive costs of implementing adequate MAS. Part III—Possible Course of Action, chapters 10 and 11, sets out what can be done to recover the relevance of MAS. Tliis review looks at the three parts in tum. The last section provides conclusions. The rise of management accounting In its early years, MAS appeared to fill the need for information regarding the internal activities of...
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...Activity Based Management A Summary Managerial Accounting Abstract Activity-based management (ABM) is an approach to management that directs the focus of cost managers towards activities analysis. Theoretically by concentrating on activities, this will increase the ability of management to control costs be improving efficiencies. Activity-based management (ABM) uses activity-based costing (ABC) information. ABM/ABC has been around for over 25 years and has gone through its peaks and valleys. This paper will give a short overview of ABM/ABC as well as discussing the main points of ABM including its goals, merits and drawbacks. Activity-Based Costing (ABC) “Where It Begins” for ABM Activity-based costing (ABC) is a costing method that assigns resource costs to products or services based on activities performed. The whole idea of this costing approach is that an organization’s products or services are produced or performed as a result of activities and activities use resources which incur costs. The costs of resources are assigned to activities based on the activities that use or consume resources and costs of activities are assigned to products or services based on activities performed. It is imperative in using ABC to identify the relationships between resource costs, cost drivers, activities, and products/services in assigning costs to activities and then from...
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...Competition Bikes (CB) is making CarbonLite and Titanium bikes. To streamline cost there need to be an investigation into which practice is most efficient and cost effective for the CB. Competition Bikes is using a traditional based costing (TBC). There needs to be a comparison between the current use of TBC and activity based costing (ABC) to decide which is most beneficial to the company. Also, the breakeven point to cost volume profit needs to be evaluated. There is a potential for a $50,000 increase in production and a 10% material cost increase. A1 Costing Method Traditional Based Costing is, “The allocation of manufacturing overhead (indirect manufacturing costs) to products on the basis of a volume metric such as direct labor hours or production machine hours.” (Traditional Costing, 2014) As manufacturing relies more on the combination of manpower and technology and the use of TBC will become more inaccurate. It will not be able to depict the true root cause for manufacturing overhead. The activity based costing (ACT) is a more reliable method of determining actual cost to produce a product. This method looks at the cost of each activity. Then it attaches a financial cost to that activity. Although ABC can be complicated to calculate it is flexible and helps companies determine more accurate budgets and true costs of producing products. The ABC method does not directly make changes to the cost of producing the product. What it does do is take into account the overhead...
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...traditional costing system to an activity-based costing system. In this summary report you will find evidence as to why this transformation it’s relevant and important since it will emphasize the differences between traditional costing and activity based costing systems. A1. Costing Method This method is defined as the allocation of manufacturing overhead (indirect manufacturing costs) to products on the basis of a volume metric such as direct labor hours or production machine hours. As manufacturing becomes more sophisticated the manufacturing overhead costs usually increase while the direct labor hours or production machine hours decrease. Hence, the direct labor or machine hours are unlikely to be the root cause of the manufacturing overhead (Accounting Coach, 2012) This costing method is called traditional costing. This procedure will accept the fact that the direct labor is the major influential cost. All other costs such as overhead costs, and indirect costs are combined and specified out on balanced splits. In the attached spreadsheet it shows Competition Bikes Inc. and Carbonlite compared side by side in this traditional costing method analysis. According to the overhead analysis,...
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...overhead to units made (Chron, 2013). Activity-based costing identifies activities that a company executes, then designates indirect costs to each product. The ABC determines the cost for each activity and allocates the cost to their respective activities. The cost assigned per activity is also assigned to respective products required for each activity. With traditional costing methods manufacturing costs are only assigned to goods that have been sold rather than accounting for nonmanufacturing costs. There are steps to activity-based costing: Identifying the cost of each activity and estimated the total cost and indirect cost Estimate the cost driver for each activity and the total quantity for each driver’s allocation base Calculate the cost appropriation per each activity Appropriate the cost to cost object Though the activity based costing consumes more time to calculate the cost of each activity, it provides a more accurate estimate of true costs for each activity and in turn earns money back (CPE Accounting Tools, 2013). Traditional based costing doesn’t account for all cost as it only accounts for manufacturing overhead cost and excludes costs that involve nonmanufacturing costs such as administrative cost. By adopting the...
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...the elements which make up the organization’s framework. For that reason, the organization must know all specificy problems, purposes, the significance of the problem, and supporting theories. In fact, this research methodology analyzes the implementation of the problem solutions, and defends the result’s findings Financial management in U.S. firms covers many areas in stocks and cost optimization of the company’s performance management, especially in IT. Many emerging and recent developments in global economies have driven growth which further challenging challenges managers in American companies. The managers have to handle financial issues, especially in this cost drivening economy. However, IT departments are facing the issue of accounting for cost reduction with budget cuts in IT departments. Therefore, the IT departments are facing pressure to cut costs, which will affect education. Financial management focuses on reducing cost, profits, and increasing shareholders value, with IT. IT information is used by the financial managers to meeting the demands of the organization to develop a strategic technology plan. IT managers are put in situations where they are forced to defend their staffing levels against both internal and external threats. Since management does not understand the scope, characteristics, and costs, they cannot develop budgets. Furthermore, the company’s fiscal period requires information about the maturity and integration being practiced in IT organizations...
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