Acct 301 Weekly Homework: The Primary Reading Material Sourc

Acct 301 Weekly Homeworkthe Primary Reading Material Source Ishttp

Read and complete the self-graded quizzes for chapters 23 and 24. The primary reading material source is (For additional information, use the OpenStax textbook available within LEO as a secondary resource). As a new hire for a major corporation during an eight-week rotation focused on accounting, financial reporting, budgeting, cost control, and profit maximization, you will learn about the accounting process and how to interpret accounting information for managerial decisions. Your task is to read the assigned chapters, demonstrate understanding through self-assessment exercises, and prepare a comprehensive report summarizing your learnings and insights gained during this week’s study.

Specifically, your report should include a detailed summary of the concepts covered in chapters 23 and 24, highlighting key ideas, principles, and methods related to financial and managerial accounting. Use your completed quizzes to illustrate your grasp of the material. Emphasize your understanding by explaining differences between external financial reporting (following GAAP and absorption costing) and internal managerial accounting (via contribution margin formats), discussing analytical tools used for large capital investment decisions, and reflecting on topics you found challenging or particularly clear during the week.

Your report should serve as documentation of your knowledge acquisition and should be written in your own words. It must be professionally formatted—single-spaced with double spacing between paragraphs, properly spelled, grammatically correct, and clear. This written assignment acts as a formal report to your supervisor on your learning progress during this rotation week, providing evidence of your comprehension of accounting and financial reporting principles covered during the week. The report must be submitted as a Word document in the designated homework folder on LEO.

Paper For Above instruction

In this week’s rotation on accounting principles, my focus was on understanding the distinctions between various financial reporting methods and the analytical tools used for investment decision-making. Chapters 23 and 24 provided valuable insights into external and internal reporting systems, the importance of proper cost allocation, and the implications for managerial decision-making. Through completing the self-assessment quizzes, I reinforced my comprehension of how income statements prepared under GAAP and absorption costing differ from internal reports using contribution margin formats.

The key takeaway from Chapter 23 was understanding the importance of accurate financial statement preparation that complies with GAAP for external stakeholders. This often involves the use of absorption costing, which allocates all manufacturing costs to units produced, thereby influencing reported income. In contrast, internal management may prefer variable costing or contribution margin analysis, which isolates fixed and variable costs to aid decision-making. I learned that the choice of costing method can significantly impact profitability analysis and operational decisions.

Chapter 24 discussed various analytical tools management can utilize to evaluate large capital investments, such as discounted cash flow analysis, net present value (NPV), internal rate of return (IRR), and payback period calculations. These tools provide critical insights into project profitability and risk assessment, enabling informed decision-making. During the quizzes, I practiced calculating NPV and IRR, which enhanced my understanding of how these methods guide investment choices.

One area I found challenging was mastering the nuances of absorption costing versus variable costing and understanding their respective impacts on financial statements. I initially struggled with grasping why income figures might differ between these methods under certain circumstances. However, additional review and practice clarified that absorption costing includes fixed manufacturing overhead in product costs, which can cause income fluctuations based on production volume, whereas variable costing expense fixed overhead in the period incurred.

In summary, this week’s coursework emphasized the importance of choosing appropriate costing and reporting methods aligned with managerial and external needs. Additionally, learning about various capital investment analysis tools equipped me with practical skills for evaluating project viability. This knowledge enhances my ability to interpret financial data accurately and make strategic recommendations within a corporate environment.

References

  • Cost accounting: A managerial emphasis (15th ed.). (2020). Charles T. Horngren, Srikant Datar, Madhav Rajan. Pearson.
  • OpenStax. (2021). Principles of Accounting, Volume 2: Financial Accounting. Rice University. https://openstax.org/books/principles-accounting/pages/24-1-investment-analysis
  • Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2021). Managerial Accounting (16th ed.). McGraw-Hill Education.
  • Horngren, C. T., Datar, S. M., & Rajan, M. V. (2018). Managerial Accounting (6th ed.). Pearson.
  • Drury, C. (2018). Management and Cost Accounting (10th ed.). Cengage Learning.
  • Brigham, E. F., & Ehrhardt, M. C. (2019). Financial Management: Theory & Practice (16th ed.). Cengage Learning.
  • Investopedia. (2023). Capital Budgeting - Net Present Value (NPV). https://www.investopedia.com/terms/n/npv.asp
  • Benjamin, B., & Seidman, J. K. (2022). Introduction to Financial Accounting. Wiley.
  • Kaplan, R. S., & Cooper, R. (1998). Cost & Performance Measurement in Strategic Management. Harvard Business School Press.
  • United States Securities and Exchange Commission (SEC). (2023). Form 10-K. https://www.sec.gov/fast-answers/answersdform10khtm.html

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