Discussion Lecture Videos On Chapters 11 And 12 Concepts

Discussion Lecture Videos On Chapters 11 And 12 Conceptsbased On The

Discussion Lecture Videos On Chapters 11 And 12 Concepts. Based on the materials presented in Chapters 11 and 12, complete the following: 1. Pick one concept from Chapter 11 and another concept from Chapter 12. Based on the two concepts you picked, produce a lecture video using PowerPoint. Explain the PowerPoint using your own voice. Your lecture video should contain at least 10 slides. Provide a numerical example(s) to support your explanations. Note- Don't consider the voiceover part. Just ppt of 10 slides (make 8 slides only. cover slide and references slide can make the other 2) Links for chapters 11 and 12 are listed below.

Paper For Above instruction

In this assignment, I will explore two key concepts from Chapters 11 and 12, develop a PowerPoint presentation to illustrate these concepts, and provide numerical examples to demonstrate their applications. Although the original task involves creating a voiceover lecture video, here I will focus solely on the PowerPoint slides, adhering to the requirement of at least 8 slides plus a cover and references slide.

Selection of Concepts

From Chapter 11, I select the concept of "Cost-Volume-Profit (CVP) Analysis," which is fundamental in understanding how changes in costs and volume impact a company's operating income. From Chapter 12, I choose the concept of "Budgeting and Variance Analysis," crucial for planning and control within managerial accounting. These concepts are interconnected; CVP analysis helps in setting budgets and understanding variances, and vice versa.

Structure of the PowerPoint Presentation

The presentation begins with a cover slide introducing the two concepts, followed by slides elaborating on each concept with definitions, key components, and practical applications. Numerical examples will illustrate how to perform CVP analysis and interpret variances within a budgeting context. Additional slides will synthesize the connection between these concepts before concluding with references.

Concept 1: Cost-Volume-Profit (CVP) Analysis

CVP analysis examines the relationships between fixed costs, variable costs, sales volume, and profit. It enables managers to determine the breakeven point, target profit levels, and the impact of cost and sales changes on profitability. The key formula involves contribution margin per unit, fixed costs, and sales volume.

Numerical Example: Suppose a company sells a product with a selling price of $50 per unit, variable cost of $30 per unit, and fixed costs of $20,000. The contribution margin per unit is $20 ($50 - $30). The breakeven point in units is calculated by dividing fixed costs by contribution margin per unit: 20,000 / 20 = 1,000 units. To achieve a target profit of $10,000, they need to sell (fixed costs + target profit) / contribution margin per unit: (20,000 + 10,000) / 20 = 1,500 units.

Concept 2: Budgeting and Variance Analysis

Budgeting involves preparing financial plans that set expectations for revenues and expenses. Variance analysis compares actual financial performance against budgets to identify deviations, analyze causes, and implement corrective measures. Variances can be favorable or unfavorable and are essential for controlling business operations.

Numerical Example: A company budgets $100,000 for direct materials, but actual costs are $110,000. The materials variance is $10,000 unfavorable, indicating higher than expected material costs. Analyzing this variance might reveal inefficiencies or price increases which need addressing.

Synthesis and Application

The integration of CVP analysis and budgeting facilitates better decision-making. CVP helps in setting sales targets and pricing strategies, while budgeting ensures financial discipline and performance monitoring through variance analysis. For instance, understanding the breakeven volume assists managers in setting realistic sales goals within the budget framework. Variance analysis, in turn, helps in adjusting strategies dynamically to meet profit objectives.

Conclusion

Understanding these two concepts enhances managerial capabilities in planning, controlling, and decision-making. Proper application of CVP analysis informs revenue targets and cost management, whereas effective budgeting and variance analysis ensure operational efficiency and financial health. Together, they form a critical foundation of managerial accounting practices that support strategic business success.

References

  • Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2022). Managerial Accounting (16th ed.). McGraw-Hill Education.
  • Horngren, C. T., Datar, S. M., & Rajan, M. (2021). Cost Accounting: A Managerial Emphasis (16th ed.). Pearson.
  • Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2020). Financial & Managerial Accounting (10th ed.). Wiley.
  • Drury, C. (2018). Management and Cost Accounting (10th ed.). Cengage Learning.
  • Hilton, R. W., & Platt, D. (2019). Managerial Accounting: Creating Value in a Dynamic Business Environment (12th ed.). McGraw-Hill Education.
  • Blocher, E. J., Stout, D. E., & Cokins, G. (2019). Cost Management: A Strategic Emphasis (8th ed.). McGraw-Hill Education.
  • Kaplan, R. S., & Atkinson, A. A. (2019). Advanced Management Accounting. Pearson.
  • Anthony, R., Hawkins, D., & Merchant, K. (2014). Accounting: Texts and Cases. McGraw-Hill.
  • Drury, C. (2020). Cost and Management Accounting (10th Edition). Cengage Learning.
  • Drury, C. (2018). Management and Cost Accounting. Cengage Learning.

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