CHAPTER 13: CAPITAL BUDGETING
A. Typical Capital Budgeting Decision
Screening decisions are those decisions relating to whether a
proposed project meets some preset standard of acceptance.
Preference decisions are those decision
ACTG1P12 WINTER 2008/09 SYSTEMS PROJECT PHASE 3
Phase 3 consists of two separate parts.
The first is the processing and completion of the payroll records including preparing and
recording the cheques and posting total payroll data to the general ledger.
Plato (35% per question for a total of 70%). Two of these four questions will be on
a) Give detailed accounts of Socrates Cycle of opposites argument and the Exclusion of
Opposites argument. Doesnt the former argument conclude that Life comes fr
Points of clarification.
Warens Month End Procedures
1. Jim Adams foots and crossfoots-this means adds and crossadds. In Phase 1 total
the columns in the Cash Receipts and Sales Journals and cross add the totals (debits as +
Winter term schedule 2010
Free will and determinism
The Satyr by Stephen Robinett.
Being and Doing by Michael Gorr
The problem of personal identity
The Meeting by Pohl and Kornbluth
Will Tommy Vladek Survive? by
CHAPTER 6: SALES & COLLECTION CYCLE
Objectives of the sales & collection system are to ensure:
The firm sells its goods and services to customers who will pay
The goods and services delivered are those that the customer ordered
ACTG 1P12: FA CHAPTER 8
Long-term liabilities: Raising money by issuing bonds
What are bonds?
Written agreement that specifies the amount to be paid by the
company and when
Specifies interest to be paid and when the principal is to be repaid
Chapter 9: Shareholders Equity
Components of Shareholders Equity: Share Capital
What is Shareholders Equity?
o Owners claim to the net assets of the firm
o Two components: Share Capital & Retained Earnings
o Amount owners have invested
Chapter 10: Cash Flow Statement
Importance of the cash flow statement
- Required by GAAP
- Shows all sources and uses of cash during the period
- Cash is king
- Management of cash flows is important measure of success
o Amount & timing of cash flows
ACTG 1P12: CHAPTER 8
A. Standard costs vs. Budgeted Costs
1. Standard cost refers to the cost of a single unit - costs that should be incurred.
Standard = benchmark or norm for measuring performance
For any resource, two cost components:
MA Chapter 9: Flexible Budgets and Overhead Analysis
A. Static vs. Flexible Budgets
o based on one level of activity (e.g. a sales level of 20,000 units)
o Problem is: what if actual activity level static budget level?
MA Chapter 10 Performance Management
A. Principles of Decentralization
Senior managers can deal with issues affecting the firm
as a whole and not worry about lesser local issues
Lower level managers with local experience and
FA CHAPTER 6: PURCHASES & PAYMENTS CYCLE
Acquiring merchandise for sale
Process begins when someone in the company needs something (goods or services)
Purchase requisition goes to the Purchasing Agent
Purchasing agent selects a v
What are Capital Assets?
Long-lived assets that are tangible in nature and are used in the operation of
Long-lived = will be used for more than one accounting period
Accounting rules apply to all stages of the products life:
FR CH 6 ASSIGNMENT
ACTG 1P12 MA CHAPTER 11
A. Full and Variable Costing
1. Full (absorption) costing includes direct materials, direct labor, variable overhead, and
fixed overhead as product costs.
a. Treats variable and fixed selling and ad
ACTG 1P12 MA CHAPTER 12
RELEVANT COSTS FOR DECISION MAKING
A. Cost Classifications
a) Relevant cost or benefit
A cost or benefit that differs, in total, between the alternatives.
Relevant costs or benefits are also known as differential or
STANDARD COSTING EXAMPLE
a. SUW, Inc. uses standard costs to value its inventories. The standard cost of
materials is $27 (9 lbs, @ $3 per lb). During the current month 150,000 lbs were
purchased at $2.95 per lb and 140,000 lbs were used. 15,000 finis
Three essential characteristics of a liability are:
1. Obligation requiring the transfer or use of an asset or provision of a
service or giving up other economic benefits, to be settled on a
determinable date or on the occurrence of an