...budget recommendation that best suites Guillermo Furniture. Three Capital Budget Evaluation Techniques-Gerald For Guillermo Furniture, Learning Team A will advise on three different capital budget techniques available to aid in the decision-making process. Those three methods are NPV (Net Present Value), IRR (Internal Rate of Return), and Payback method. NPV (Net Present Value) NPV or net present value helps an organization figure out whether it’s better to invest in a project based on the net amount of discounted cash flows for the project (Eldenburg, PhD & Wolcott PhD, CPA, CMA, 2011). NPV is best served positive which will indicate that the project will be a benefit by increasing the value of the organization. NPV is calculated through expected cash flows that include an initial investment, incremental operating cash flows, and terminal cash flows (Eldenburg, PhD & Wolcott PhD, CPA, CMA, 2011). That calculation is as follows: [pic] Through this calculation, the firm is computing the time period (t), life of the project (n), and the discount rate (r) to reach the NPV. The results as stated earlier if shown to be positive will prove that the project is valuable to the organization. The evaluation for NPV will show to accept if the NPV is greater than zero (Eldenburg, PhD &...
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...2013-2014 CPA, CMA Candidate’s Guide 2013-2014 Candidate’s Guide Note to Readers Dear Candidates: You have chosen the CPA profession, one of the most demanding and enriching that there is. We congratulate you and promise to do everything we can to make this the best choice for your professional development. Specially designed for you, this guide provides detailed descriptions of all components of the CMA Strategic Leadership Program, at the end of which all conditions for obtaining the CPA designation should be fulfilled. This guide is an essential tool that you should read carefully since it outlines all of the rules governing the Program. These rules are intended to ensure, on the one hand, that all candidates master the skills necessary to practice the profession and, on the other hand, that everyone is treated equally. It is in this spirit that the moderators, correctors and staff of the Order make sure that they are respected. Note: Wherever there is a difference in interpretation, the French version of this Guide will prevail over the English version. o Happy reading! 2 2013-2014 Candidate’s Guide Table of contents Note to Readers Chapter 1 CMA Strategic Leadership Program (SLP) 1.1 1.2 SLP objectives and basics The SLP in steps 1.2.1 Phase 1 - Development 1.2.1.1 Learning activities 1.2.2 Case Examination 1.2.3 Phase 2 - Application 1.2.4 Report to the Board 1.2.5 Practical experience Evaluation methods for learning activities and national...
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...Exercise 2-3 To: Jim Kakes From: Zhenqun Huang Subject: Suggestion about CMA Date: Sep. 10 2012 This memo is in response to your questions hiring a CMA. This memo will first explain Certified Management Accountant (CMA) and then discuss the value of CMA to the company. After you know the designation of CMA, you will be better able to decide whether the extra amount salary is worth. What Is Certified Management Accountant (CMA)? The title Certified Management Accountant (CMA) is used by various professional bodies around the world to designate their different professional certifications. CMA is also called as The Institute of Management Accountants (IMA) in the United State. IMA is a collective voice of accountants and financial professionals around the world who work in business, with job responsibilities distinct from those in public accounting. The Value of CMA to the Company IMA raises awareness of management accounting, which includes jobs in decision support, plan, and control positions. Some common job titles for management accountants include: Chief Financial Officer (CFO), Treasurer, Vice President of Finance, Controller, Treasurer, Finance Manager, Internal Auditor, Corporate or Division Planner, Cost Accountant, and Staff Accountant. The four-part CMA exam covers a wider body of knowledge, including Business Analysis, Management Accounting and Reporting, Strategic Management, and Business Applications which give the accounting staff a broader background...
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...Case 2-8 Juggyfroot This case shows the auditors resisting pressure from the client to change to a non justified accounting treatment. The stakeholders of this case are the bank, the shareholders, creditors, suppliers, employees, and officers of the firm. The stakeholders expect non-misleading financial statements. Deziloo has an obligation to perform the audit with integrity, objectivity, and due professional care. From a rights perspective, it is not right to mislead the investors by making it look as though the company is doing better than it really is. Any attempt to intentionally misstate the financial statements violates the categorical imperative. From a justice perspective, stakeholder interests are not fairly represented because the perceived interests of the management are given priority over the interest of all other stakeholders. From a utilitarian perspective, Rule-utilitarianism requires that the correct rule should be followed. Act-utilitarianism requires that the act that creates the greatest good for the greatest number of stakeholders should be selected. None of the stakeholders benefit from an action that misstates net income. From a virtue perspective, honesty requires that the statements should be truthful and recognize revenue using generally accepted accounting principles. Objectivity requires that the company should approach its decision about the proper asset classification with fair-mindedness and without partially to one set of stakeholders....
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...statement and the sheer amount that has actually changed since then. However, amidst the laughter, a question is raised: is it possible that today’s businesses believe what Duells said, that there is nothing more to come? Today, companies have access to some of the most groundbreaking technology, but are they truly taking advantage of it? One field that has changed dramatically over the past few years is the accounting profession, especially Certified Public Accountants (CPAs). Are CPAs staying on top of the latest technology that can greatly assist them in doing their job? For a better understanding of how technology directly affects the CPA profession one can simply look at the changes that have occurred over the past few decades, what a current office should be using, along with checking out the technological advances and how they will affect the career of CPAs in the next ten to twenty years. Not only is the accounting world changing, but the courses that an individual must study on the road to becoming a CPA, are also rapidly changing. The objective is to better prepare new graduates with a better understanding of the technology that will soon be such an integrated part of their lives. Courses used to focus strictly on the use of paper, pencil, and good old graphing squares in the solving of problems! The book that was studies was the single focus of professors, and contained everything that an aspiring student would want to know. Universities and individual professors, however...
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...Skills, Responsibilities and Roles of the Management Accountant Today's Management Accountant Skills, Responsibilities and Roles in Today's Global Economy Jennifer Dosch, CMA Metropolitan State University Chapter Goal: To demonstrate the skills necessary for management accountants in today's business environment. To identify and explain the responsibilities and roles for today's management accountant. Learning Objectives Demonstrate the differences between management and financial accounting. Describe important skills needed for today's management accountant. Examine responsibilities of the management accountant. Examine the roles required of today's management accountant. Summarize IMA's Code of Ethics for management accountants. Jennifer.Dosch@metrostate.edu Page 1 Skills, Responsibilities and Roles of the Management Accountant I. Overview of Accounting The two primary accounting roles in an organization are “financial” and “management” accounting. The recording of transactions and preparing financial reports is the financial accounting role. Financial accounting deals with historical results, the recording and reporting of transactions that have occurred. For example, paying cash for salaries expenses incurred or recording the purchase of raw materials. The recording of transactions and preparation of financial statements are currently guided by Generally Accepted Accounting Principles (GAAP). GAAP consists of standards and...
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...The Role of Management Accounting in the Organization The purpose of management accounting in the organization is to support competitive decision making by collecting, processing, and communicating information that helps management plan, control, and evaluate business processes and company strategy. The interesting thing about management accounting is that it is rare to find an individual within a company with the title of “management accountant.” Often many individuals function as accountants within the organization, but these individuals typically operate as financial accountants, costs accountants, tax accountants, or internal auditors. However, the ability to develop and use good management accounting (which covers a lot more ground than the product costing done by cost accountants) is actually an important ability for many individuals, including finance professionals, operational and marketing managers, top-level executives, and information technologists. Generally, in a very large company, each division has a top accountant called the controller, and much of the management accounting that is done in these divisions comes under the leadership of the controller. On the other hand, the controller usually reports to the vice president of finance for the division who, in turn, reports to the division’s president and/or overall chief financial officer (CFO). All of these individuals are responsible for the flow of good accounting information that supports the planning...
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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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...CHAPTER 1 ENVIRONMENT AND THEORETICAL STRUCTURE OF FINANCIAL ACCOUNTING Overview The primary function of financial accounting is to provide useful financial information to users external to the business enterprise. The focus of financial accounting is on the information needs of investors and creditors. These users make critical resource allocation decisions that affect the nation’s economy. The primary means of conveying financial information to investors, creditors, and other external users is through financial statements and related notes. In this chapter you explore important topics such as the FASB’s conceptual framework that serve as a foundation for a more detailed study of financial statements, the way the elements of these statements are measured, and the concepts underlying these measurements and related disclosures. Learning Objectives LO1–1 Describe the function and primary focus of financial accounting. LO1–2 Explain the difference between cash and accrual accounting. LO1–3 Define generally accepted accounting principles (GAAP) and discuss the historical development of accounting standards, including convergence between U.S. and international standards. LO1–4 Explain why the establishment of accounting standards is characterized as a political process. LO1–5 Explain factors that encourage high-quality financial reporting. LO1–6 Explain the purpose of the conceptual framework. LO1–7 Identify the objective and qualitative characteristics...
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...------------------------------------------------- Management accounting From Wikipedia, the free encyclopedia | This article contains wording that promotes the subject in a subjective manner without imparting real information.Please remove or replace such wording and instead of making proclamations about a subject's importance, use facts and attribution to demonstrate that importance. (February 2012) | Accounting | | * Historical cost accounting * Constant purchasing power accounting * Management accounting * Tax accounting | Major types of accounting[show] | Auditing[show] | People and organizations[show] | Development[show] | Business portal | * v * t * e | In Management accounting or managerial accounting, managers use the provisions of accounting information in order to better inform themselves before they decide matters within their organizations, which aids their management and performance of control functions. Contents [hide] * 1 Definition * 2 Scope, practice, and application * 3 Differences between financial accountancy and management accounting * 4 Traditional vs. innovative practices * 5 Role within a corporation * 6 Specific methodologies * 6.1 Activity-based costing (ABC) * 6.2 Grenzplankostenrechnung (GPK) * 6.3 Lean accounting (accounting for lean enterprise) * 6.4 Resource consumption accounting (RCA) * 6.5 Throughput accounting * 6.6 Transfer pricing ...
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...CASE EXAMINATION EmRen Publishing Incorporated MAY 2013 © 2014 The Society of Management Accountants of Canada. All rights reserved. ®/™ Registered Trade-Marks/Trade-Marks are owned by The Society of Management Accountants of Canada. No part of this document may be reproduced in any form without the permission of the copyright holder. May 2013 Case Examination TABLE OF CONTENTS May 2013 Case Examination Page Case Question: Backgrounder ................................................................................... 1 Additional Information ..................................................................... 15 General Comments on Performance ....................................................... 30 Steps for Approaching Business and Corporate Strategy ........................ 41 Marker Assessment Guide ....................................................................... 48 Solution Notes for Markers....................................................................... 58 Sample Response – Successful Attempt #1 ............................................ 79 Sample Response – Successful Attempt #2 .......................................... 111 Sample Response – Unsuccessful Attempt ........................................... 152 May 2013 Case Examination May 2013 Case Examination Backgrounder The background information relating to the Case Examination (Backgrounder) is provided to candidates in advance of the examination date. The...
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...Chapter 1 Auditing and Internal Control Review Questions 1. What is the purpose of an IT audit? Response: The purpose of an IT audit is to provide an independent assessment of some technology- or systems-related object, such as proper IT implementation, or controls over computer resources. Because most modern accounting information systems use IT, IT plays a significant role in a financial (external audit), where the purpose is to determine the fairness and accuracy of the financial statements. 2. Discuss the concept of independence within the context of a financial audit. How is independence different for internal auditors? Response: The auditor cannot be an advocate of the client, but must independently attest to whether GAAP and other appropriate guidelines have been adequately met. Independence for internal auditors is different because they are employed by the organization, and cannot be as independent as the external auditor. Thus internal auditors must use professional judgment and independent minds in performing IA activities. 3. What are the conceptual phases of an audit? How do they differ between general auditing and IT auditing? Response: The three conceptual phases of auditing are: i. Audit planning, ii. Tests of internal controls, and iii. Substantive...
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...1. Absorption and variable costing: KLM Inc. makes a single product. Actual data for the year are as follows: Selling price per unit $20 Variable costs: Direct material used per unit 2 Direct labor cost per unit 5 Variable manufacturing cost per unit 1 Variable selling cost per unit 1 Annual fixed costs incurred: Manufacturing 240,000 Selling and administrative 105,000 The firm began the year with no inventories; 50,000 units were produced and 40,000 units were sold. There were no work in process inventories. REQUIRED: A. Assume absorption costing, compute the following: 1. Product cost per unit $____________________ 2. Total cost of goods manufactured $____________________ 3. Total cost of ending inventory $____________________ 4. Total cost of goods sold $____________________ 5. Gross profit $____________________ 6. Net income $____________________ B. Assume variable costing, compute the following: 1. Product cost per unit $____________________ 2. Total cost of ending inventory $____________________ 3. Total contribution margin $____________________ 4. Net income $____________________ 2. Absorption and Variable costing: A firm has prepared financial statements on both a direct costing and a full costing...
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...TECHNOLOGY Why Cloud Computing Matters to Finance By Ron Gill, CMA, CFM When was the last time you upgraded your ERP system? If the answer is “not in recent memory,” then you aren’t alone. About two-thirds of mid-sized businesses are running old versions of their enterprise resource planning (ERP) system—in some cases, it’s software that’s three or more versions old. This is the legacy of decades of on-premise (in-house) software deployments, incremental releases that never seemed worth the pain of a major upgrade migration project, and fear of losing critical customization. January 2011 I S T R AT E G I C F I N A N C E 43 TECHNOLOGY But in the midst of rapidly changing revenue recognition rules and a constantly evolving regulatory environment, it’s more important than ever to have your business systems reflect the current business environment. At NetSuite, at the time of this writing (December 2010), we’re running the company on the current version of NetSuite’s cloud ERP solution—2010.2—that was released in October 2010. In fact, every other business running its financials on NetSuite’s cloud ERP—from the smallest business that started using it more than 10 years ago to the largest enterprise that signed up last quarter—is also running on the latest version of the software. In contrast, the fact that the bulk of finance organizations are running traditional, on-premise accounting systems that are too painful to upgrade is just one data point that the era...
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...Events List 按时间顺序： 暑假Wonderland活动：更多是给内部开放的。Detail参考下面的Halloween Haunt。 Amazing Race：9月第一周（frosh week），类似scavenger hunt，10个任务/谜语，解开谜语后答案为10个多大著名的教学楼（CH, SS, bookstore, exam centre, HH, Robarts, etc.）。活动大体流程：1、参与人员分好组之后会获得CSSA工作人员发的卡片（1张卡片/group）。2、解开谜语后，参与人员需到达该地点，向工作人员出示卡片，并说出这栋楼叫什么名字。3、成功后，该地点工作人员可以在卡片上盖章/贴贴纸。4、集齐10张贴纸后，便需赶向最后的集合地点（通常为Robarts），与在robarts摆booth的工作人员相见。需检查是否获得所有贴纸，成功者前三名可有奖品。PS：活动仅限大一新生或第一次来到多大的学生/学者参加。 所需物资：10道隐藏多大教学楼名字的谜语，booth物资，卡片，贴纸，11-15工作人员（穿cssa工作服），前三名的奖品（小的sponsor），为参与者提供N份多大地图（可从robarts免费拿到） Club Day CSSA Orientation 这两个为project制活动，活动部不需要全权负责 Niagara Falls Trip：9月20号左右的周六。与圣诺旅行社合作，旅行社所提供的价格里包括导游、来回schoolbus接送、Chinese buffet、雾中少女号的船票。 PS：由于上次活动下了雨，所以临时改了登skylon的行程，去了Niagara Falls Outlet购物，据说反响还不错。以后活动可以考虑不登Skylon，票价也许能压的再低些。 需两名带队的工作人员。通常走一车。合作伙伴为UT ViewFinder（他们负责出人教会员如何照瀑布，etc..） 活动行程: （去年） 08:00 am : U of T Con Hall 门口集合乘坐School Bus前往大瀑布景区 08:30 am : 出发 10:30 am - 11: 30 am : 到达大瀑布景点, 登上Skylon(包上塔的票) 12:00 am - 01: 00 pm : Chinese Buffet (包餐) 01:00 pm - 04: 00 pm : 乘坐"雾中少女游船" + 自由活动(包船票) 04:30 pm : 相应地点集合 05:00 pm : 出发 07:00 pm : 到达Con Hall门口 Algonquin枫叶之旅：10月初，根据algonquin的枫叶红的情况来定。与圣诺旅行社合作。所交票价里包括，导游，来回Coach接送。（往年一般是包午餐的，今年负责人没有谈下来，以后可以再砍砍价） 需两名带队的工作人员，如果新生周宣传做的好的话，可以周六走一辆车，周日走一辆车。 Budget： Coach Bus: $1800 Parking ticket: $200 Tips: $440 Snack Packages: $275 Total Expense: $2715 Cost/Person: $49 活动流程：（去年） 活动时间：10月5日 周六 活动日程：7:15a.m. Con Hall 集合 7:30a.m. 出发 9:00p.m. 回到多伦多 豪华COACH（不是校车啦！oye！）来回接送！ 票价：会员55刀，非会员60刀 票价不包括午餐，午餐可自带或报名$15的buffet...
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