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Category > Accounting Posted 21 Dec 2017 My Price 10.00

Using Costs in Decision Making

THERE ARE HIGHLIGHTS ON PA-1 ON THE EXCEL SHEET ATTACHED. 

I DO NOT KNOW HOW THOSE NUMBERS AND PERCENTAGES WERE CALCULATED. PLEASE HELP. THANK YOU.

ITS THE VOTRE SANTE WINERY CASE FOR MANAGERIAL ACCOUNTING 

 

 

Chapter 3: Using Costs in Decision Making TEACHING NOTE: A VOTRE SANTÉ 1 The A Votre Santé (AVS) case is multi-faceted in that it requires students to incorporate operational measures into product costing results, and also to understand cost accounting from a variety of perspectives, such as:  Product versus period costs  Variable versus fixed costs  Activity based costing  Relevant costs and opportunity costs Additionally, the case questions require both quantitative and qualitative analyses of the business issues faced by AVS. AVS has been used in a graduate-level managerial accounting class for MBAs, and would be most appropriate for an advanced undergraduate or a graduate-level accounting or MBA course. The detail in the case is rich enough to support a variety of analyses. Alternative uses could be to have the student construct a cost of goods manufactured statement or a traditional financial statement, both of which reinforce the differences between product and period costs. Additionally, alternative decision analysis questions could be developed using the variable and fixed cost structures described in the case. Case question number two is only one example of a potential decision analysis question. (a) Contribution Margin Income Statement To develop the contribution margin income statement, you first have to calculate the number of bottles of wine produced by AVS. This number is dependent upon the yield from the grapes. The relevant calculations are as follows: Chardonnay Generic Yield: Grapes Grapes Pounds harvested 100,000 60,000 Loss in processing 10,000 10% 3,000 5% Yield: 90,000 57,000 1 © 2010 Priscilla S. Wisner. Adapted and used by permission of Priscilla S. Wisner. – 52 –
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CourseLover
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Status NEW Posted 21 Dec 2017 07:12 AM My Price 10.00

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