Title: Ethics Challenge 1
QA_Ori: Raw materials are part of inventory and should be capitalized (set up
as assets). Their costs are subsequently reported as part of cost of goods
Title: Ethics Challenge 2
QA_Ori: The challenge is how to handle a request to use one’s accounting
skills in an inappropriate manner. It is important to remember that the
QA_Ori:
Instructor note: The solution to this project depends on the database and career fields reviewed.
The objective of this Communicating in Practice project is to make students
Title: Taking It to the Net 1
QA_Ori:
Standards of Ethical Conduct for Management Accountants are posted at the
Web site: http://www.IMAnet.org
These standards (in abbreviated form) are:
Competence – maintain an appropriate level of professional competence.
QA_Edit:
Title: Taking It to the Net 2
QA_Ori: The four overarching principles are: Honesty, Fairness, Objectivity,
and Responsibility.
QA_Edit:
Title: Taking It to the Net 3
QA_Ori: The IMA suggests first trying to resolve ethical conflicts by applying
the policies of your organization. If this is unsuccessful, contact your
Title: Teamwork in Action 1
QA_Ori:
a. Materials used = Beg. Materials + Materials purchased – End. materials
b. Factory overhead
= Depreciation on factory equipment + factory supervision + factory supplies used + factory
utilities + Indirect labor + Miscellaneous production costs + Rent on factory building +
Maintenance on factory equipment
c. Total manufacturing costs
= Materials used (from a) + Direct labor + Factory overhead (from b)
d. Total cost of goods in process
= Beg. GIP Inv. + Total manufacturing costs (from c)
e. Cost of goods manufactured
= Total cost of goods in process (from d) – Ending GIP Inventory
Title: Teamwork in Action 2
QA_Ori: Requires that the team check answer to part (1e) with instructor before
proceeding to part (3).
Title: Teamwork in Action 3
QA_Ori:
a. Net sales
= Sales – Sales discounts
b. Cost of goods sold
= Beg. finished goods + Cost of goods manuf. (from 1e) – End. finished goods
c. Gross profit
= Net sales (from a) – Cost of goods sold (from b)
d. Total operating expenses
= Advertising expense + Depreciation expense on office equipment +
Depreciation expense on selling equipment + Office salaries expense +
Rent expense on office space + Rent expense on selling space + Sales
salaries expense
e. Net income before taxes
= Gross profit (from c) – Total operating expenses (from d)
Title: Entrepreneurial Decision 1
QA_Ori:
Manufacturing costs for Back to the Roots include (a) direct materials such as
coffee grounds, mushroom seeds, and water (b) direct labor such as mixing
Title: Entrepreneurial Decision 2
QA_Ori:
Four goals of a total quality management (TQM) process include reduced
waste, better inventory control, fewer defects, and continuous improvement.
Title: Hitting the Road
QA_Ori:
Instructor note: Student responses will vary depending on the restaurant chosen.
The general framework of a good response includes:
1.
The usual activities are
serving customer at counter
2.
Costs associated with each activity include
Direct and indirect materials – such as meat, bread, pickles, and other
The student should observe that most available cost information is classified
3.
QA_Edit:
Title: Global Decision 1
QA_Ori:
The Role of the Board of Directors section of the company’s website identifies
the board’s main responsibilities:
Developing strategic guidelines for the company
In addition to the roles mentioned on the company’s website, boards of
Title: Global Decision 2
QA_Ori:
Management accountants would be involved in:
Helping to prepare the annual budgets.