Title: Reporting in Action 1
QA_Ori:
We would anticipate that at least two types of costs will increase as a percent
of sales with Polaris’s growth in domestic sales. The first type is broadly
QA_Edit:
Title: Reporting in Action 2
QA_Ori:
Both types of costs identified in part 1 are likely to increase as Polaris
Achieving success with the first type of costs can be examined by looking at
the relation between operating costs and sales growth. Success with the
QA_Edit:
Title: Reporting in Action 3
QA_Ori:
Solution depends on the annual report information obtained.
Title: Comparative Analysis 1
QA_Ori:
Actual inventory changes and operating cash flow effects as found on the
cash flow statement (amounts are in $thousands)
Polaris Current Year
One Year Prior Two Years
Prior
Arctic Cat Current Year
One Year Prior Two Years
Prior
QA_Edit:
Title: Comparative Analysis 2
QA_Ori: A successful JIT system should reduce inventory levels. This
reduction in inventory should increase operating cash flows. In the solution of
Title: Comparative Analysis 3
QA_Ori: This is a one-time occurrence of a release of cash. However, this
Title: Ethics Challenge
QA_Ori:
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Suggested content outline
The obvious concern is that management is allocating more overhead to
Specifically, by allocating more overhead to government jobs, profits on
QA_Edit:
Instructor note: This problem is designed to illustrate why the accounting professional must be
aware of management’s and employees’ biases when working with and relying on accounting
estimates and data.
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Suggested content outline
The obvious concern is that management is allocating more overhead to
Specifically, by allocating more overhead to government jobs, profits on
Title: Communicating in Practice 1
QA_Ori:
Student notes should include but not be limited to the following points:
You recommend replacing the general accounting (periodic inventory) system
with a cost accounting (perpetual inventory) system—specifically a job order
QA_Edit:
Student notes should include but not be limited to the following points:
Title: Communicating in Practice 2
QA_Ori: This new system would require use of many different documents to
control the acquisition, use, and availability of materials. It also requires
Title: Communicating in Practice 3
QA_Ori: The focal point of the new system is the job cost sheet, which is used
Title: Taking It to the Net
QA_Ori:
Instructor note: There is no single solution to this assignment.
The Website [amsi.com] provides details about what its job costing software can
provide to users. After careful examination, students can write a report to the
CEO, which may include the following points:
Title: Teamwork in Action 1
QA_Ori: A medical clinic can be considered as appropriate for a job order cost
accounting system. This is because each patient is unique in many ways,
Title: Teamwork in Action 2
QA_Ori: In light of the differences identified in part 1, the doctors will consider
Title: Entrepreneurial Decision 1
QA_Ori: A job cost sheet for a service company would likely not have any
costs for direct materials. A manufacturing company like Astor and Black
Title: Entrepreneurial Decision 2
QA_Ori:
Direct Labor: Wages/salaries of tailors.
Overhead: Allocated portions of general administrative costs such as
Title: Hitting the Road 1
QA_Ori: The framework for the job cost sheet should follow that in the second
Title: Hitting the Road 2
QA_Ori:
Results of the comparison of job cost sheets to a builder’s actual job cost
QA_Edit:
Title: Global Decision 1
QA_Ori:
KTM ($ ‘000’s)
Balance,
Current Year
Balance,
Prior Year
Change in
Inventory
Inventory………………………………………$113,979 $108,910 $5,069
Increase
Piaggio (€ ‘000’s)
Balance,
Current Year
Balance,
Prior Year
Change in
Inventory
Inventory………………………………………€236,998 €240,066 €3,068
Decrease
Title: Global Decision 2
QA_Ori: A successful JIT system should reduce inventory levels. This
reduction in inventory should increase operating cash flows. In the solution
Title: Global Decision 3
QA_Ori: We cannot definitively determine which company of the two would