Activity-based Budgeting (ABB) Although the textbook that we will be using for this session will focus on traditional budgeting, activity-based budgeting (ABB) using ABC costing techniques is an important budgeting tool used by many organizations. Each week, lessons present some information related to ABB. Although you had ABC costing in ACCT505, some of you may […]

Does the City Project Meet the Pareto Efficiency Criterion?   Stanley Ryan, Your Supervisor   Read the following scenario and then answer the Problem Demonstration Questions below.   The allocation of resources relates to both business and government. State, local, and federal governments could use the Pareto efficiency criterion to measure the effectiveness of the […]

Pro Forma Income Statement   The pro forma income statement uses the sales budget, as well as all of the operating budgets, to develop the numbers that are needed to complete this important statement.   To help you gain the necessary skills to complete this week’s problem, you have been provided with a problem demonstration […]

Pro Forma Income Statement and Balance Sheet  Cash is king! Although this is often an overused statement, it is definitely true that a business cannot function effectively without strong cash inflows. The cash budget helps managers spot problem areas involving cash flow throughout the year. It also allows these managers to develop proactive solutions.   […]

Net Present Value and Internal Rate of Return   This presentation reviews two concepts, net present value (NPV) and internal rate of return (IRR). It will demonstrate how to use these concepts to determine the time value of money and whether or not to accept a project.   It is suggested that you view this […]

Production budgets are the heart and soul of budgeting for a manufacturing firm. How much should the company produce? What level of raw materials should be purchased? How much labor will be needed? What training level is necessary for that labor? What capacity is needed?   These are some of the questions that will be […]

Sales Forecasting   Forecasting sales can be a difficult topic for many people involved in the budgeting process. The problem demonstration provided for you this week will focus on quantitative forecasting methods. Hopefully, this step-by-step presentation of various techniques will help you develop your own skills.   It is suggested that you view this problem […]

Consider your Course Project and what you have learned in this class. When preparing conclusions, why are ethical considerations important? What about when preparing recommendations?   DQ2 REMAINING CURRENT SERIES 2 What are some ways that you can remain current in the accounting field? Describe one of the ways.

You are a CPA in practice at a local CPA firm working with individual tax clients. A client comes into your office and says that she has her own business but doesn’t want to report all of her income. Considering your risk, the risk to your client, and ethical considerations, what should you tell her? […]

DQ1 CODIFICATION SERIES 1 Refer to FASB 162 (the hierarchy of accounting information). Why is this hierarchy important, and how can it be applied to conducting research?   DQ2 BUSINESS RESEARCH SERIES 2   In the AICPA’s website (Links to an external site.) (www.aicpa.org), find a recent news article. Describe the article’s impact on accounting […]