Stage 1 Desired Results

Transcription

1 ACC226: Cst Accunting: Chapter 3 Created by: Michelle Schen (Updated 10/24/16) Cntent Standard(s): Stage 1 Desired Results FIAC a: Explain and cmpare the behavir f fixed, variable, and mixed csts (Clrad career and technical educatin, 2010). MAOM f: Apply cst-vlume-prfit and cntributin margin analyses in planning peratins (Clrad career and technical educatin, 2010). FIAC b: Apply analytical and critical decisin-making skills (Clrad career and technical educatin, 2010). ESSK.03: Slve prblems using critical thinking skills (analyze, synthesize, and evaluate) independently and in teams using creativity and innvatin (Clrad career and technical educatin, 2010). FIAC.01.05: Financial Analysis: Assess the financial cnditin and perating results f a cmpany and analyze and interpret financial statements and infrmatin t make infrmed business decisins (Clrad career and technical educatin, 2010). RWC10-GR.9-S.1-GLE.1-EO.b: Use verbal and nnverbal techniques t cmmunicate infrmatin (Clrad career and technical educatin, 2010). Understandings: Essential Questins: Students will be able t explain and cmpare the behavir f fixed, variable, and mixed csts. Students will perfrm jb csting by calculating a breakeven pint and perating incme fr a cmpany. Students will be able t analyze data and calculatins and make critical decisins based n their findings. Students will use critical thinking skills t determine hw t allcate prductin units in a way that maximizes the perating incme fr a cmpany. Students will be able t analyze financial statements t determine the financial cnditin and perating results f a cmpany, giving them the infrmatin they need t make decisins. Students will use Micrsft Excel and Wrd t create analyses f a cmpany. The will use ther presentatin sftware f their chice t present their findings t the class. What are cst behavirs? What is the difference between fixed, variable, and mixed csts? Hw d yu knw which type f cst is being used? Why is this imprtant? In yur prject, yu are asked t determine where items shuld be manufactured. Hw will calculatin f the cntributin margin help yu in making this decisin? What key factrs and calculatins will yu need in rder fr yur grup t determine which lcatin shuld becme the main manufacturing lcatin? Is there anything else yu need t cnsider? Why is the breakeven calculatin and analysis imprtant when analyzing prductin csts? Is ne type f analysis mre imprtant than anther (i.e. breakeven analysis f units, breakeven analysis f dllars)? Why r why nt? Hw will yu present yur findings t the class? In what ways will sftware enhance yur presentatin? What infrmatin will be mst useful when explaining yur findings? Student bjectives (utcmes): Students will build relatinships by Students will be able t define fixed, variable, and mixed csts, hw they are Students will wrk in grups f tw t cmplete the prblem/prject. They will determine wh is ging t cmplete which parts f the prject, then Page 1 f 12

2 used in accunting, and why they are imprtant. Students will be able t calculate cntributin margin per unit, perating incme per unit, annual fixed csts fr all lcatins, breakeven vlumes, and perating incme. Students will be able t use critical thinking skills t make infrmed business decisins. they will create a presentatin fr the entire class, detailing their findings. Each student is equally respnsible fr all parts f the prject and presentatin. Questining Wrking with me during ffice hurs, if necessary. Rules and Prcedures (I use these rules and prcedures in all f my classes.): Rules: Respect ther students and the teacher when they are talking. Try t use yur wn experiences when talking rather than generalizatins. This helps t make the material mre persnal. Sharing yur wn experiences shuld nt include invalidating smene else s experience. N persnal attacks. It s gd t challenge each ther, but d it respectfully. The gal f this classrm is t gain a deeper, richer understanding, nt t becme rbts wh agree with everything. Be aware f yur wn bdy language actins speak luder than wrds. Prcedures: Yu are respnsible fr yur wn educatin. Attend every class, arrive n-time and prepared, and participate actively. Make sure yu turn in all f ur assignments n-time. Please place yur cell phnes n silent when yu enter the classrm. Texting is nt allwed in the classrm. Please walk ut f the classrm if yu have an urgent situatin. While it is gd t ask questins, please make sure yu are als giving ther students the pprtunity t ask questins. If yu have already been called n t answer ne f the prfessr s questins, please let thers answer until everyne has had at least ne pprtunity in the class perid. Ask fr help if/when yu need it. The CTE tutring center is an excellent resurce. My ffice hurs are psted in yur syllabus. Please use the resurces available t yu. Page 2 f 12

3 Perfrmance Task(s): GRASPS Stage 2 Assessment Evidence Gal Rle The gal is t learn hw t calculate simple and cmplex breakeven pints and perating incme, analyze the data, and make critical decisins based n findings. Yu are the lead cst accuntant fr Prtal Crpratin, and yu have been asked t determine the best lcatin frm which t manufacture their pwer generatrs. Audience The target audience is the CFO, wh will then present yur findings t the CEO. Yu need t cnvince the CFO which lcatin is the mst cst effective fr the manufacturing. Situatin The challenge invlves dealing with a CFO wh des nt handle this type f cst accunting, s yu are expected t be the expert in this area. Prduce, Perfrmance, and Purpse Yu will create a plan fr manufacture f the generatrs. Yu shuld be able t explain yur reasning f why yu selected a certain manufacturing plant using Micrsft Excel and presentatin sftware. Standards and Criteria fr Success Yur final presentatin must meet the fllwing standards: Clear plan explaining yur calculatins f the cntributin margins, breakeven pints, perating incme and perating incme t prduce the specific number f units accrding t yur prject plan. Step 1: Pre-Assessment. This is the ungraded assessment that was given nline. This assessment assumes the students have read their textbk befre class, a requirement fr mst classes at the cmmunity cllege. See attached Appendix 1. Perfrmance Task(s) r Assignment Descriptin(s): Rubric See attached Appendix 2. Perfrmance Tasks: The gal f this lessn/chapter is t teach students hw t calculate breakeven pints and perating incme fr a cmpany. Students will als determine whether ne manufacturing plant is a better chice ver anther by using critical thinking skills t allcate prductin units t maximize the cmpany s perating incme. The final prject will culminate with a presentatin shwing the grup s findings and explaining their ratinale. The presentatin will highlight their mathematical calculatins, analysis, and use f gd judgment. A rubric has been created t assess all f the parts f the prject. Page 3 f 12

4 Self r Peer Assessments Other Evidence (assessments) Students will receive and review the rubric prir t beginning the prject. Students will receive tutring help frm the CTE tutring center fr written exercises. Students will peer review ne anther s depreciatin calculatins. Students may chse t receive help frm me during ffice hurs r via phne calls. Frmative Assessment (Pre-Assessment Quiz) In-class activities regarding financial statement creatin and analysis. Practice prblems during class. The nly graded assessment in this chapter is the prject cmpleted at the end. Learning Activities: Stage 3 Learning Plan Mini-Lessn #1: Calculating breakeven pint in units. This will be taught n the whitebard and using Micrsft Excel (Rigr, Relevance). Activity #1: Wrk thrugh hmewrk prblem t calculate breakeven pint in units (Rigr, Relevance, Relatinship building). G ver answers t activity #1 (Relevance, Relatinship building). Mini-Lessn #2: Calculating desired prfits in units. This will be taught n the whitebard and using Micrsft Excel (Rigr, Relevance). Activity #2: Wrk thrugh hmewrk prblem t calculate desired prfits in units (Rigr, Relevance, Relatinship building). G ver answers t activity #2 (Relevance, Relatinship building). Mini-Lessn #3: Calculating breakeven pint and desired prfit in sales dllars. This will be taught n the whitebard and using Micrsft Excel (Rigr, Relevance). Activity #3: Wrk thrugh hmewrk prblem t calculate breakeven pint and desired prfit in sales dllars (Rigr, Relevance, Relatinship building). G ver answers t activity #3 (Relevance, Relatinship building). Learning Activities: WHERE Where the student is headed frm the beginning t the end f the unit: Students taking this class have already made the decisin t becme accuntants, s their knwledge base has already been structured in that directin. While they have been expsed t sme f the surface elements f cst accunting, this class will help them t develp their knwledge n a deeper level (K=what the students already knw) (Wiggins & McTighe, 2006, p. 200). Students cming int this class have already expressed the desire t expand their accunting knwledge. Cst accunting is at the heart f mst businesses, s students have a desire t learn what it takes t break even and t make a prfit (W=what the students wan t learn) (Wiggins & McTighe, 2006, p. 200). In this class, students will use the financial statements and infrmatin frm the cmpany where the currently wrk, giving them new insight int the inner wrkings f the financial side f the cmpany. This particular unit will teach them hw t determine the cmpany s breakeven pint and therefre the cmpany s prfit levels (L=key learnings) (Wiggins & McTighe, 2006, p. 201). Page 4 f 12

5 Hk the student (Wiggins & McTighe, 2006, pp ): Students will d hmewrk prblems in class that use financials frm the cmpany fr which they currently wrk, giving them new insight int the inner financial wrkings f the cmpany. Explre the subject and equip the student (Wiggins & McTighe, 2006, pp ): Activities will include hmewrk prblems that have been redesigned with their currently cmpany in mind. Students will als learn hw t d calculatins manually n paper as well as using Micrsft Excel. This will allw them t find their wn mistakes. Rethink wrk and ideas (Wiggins & McTighe, 2006, pp ): Final prject will allw students t make lgical, intelligent business decisins based n slid calculatins and financial analysis. Evaluate results (Wiggins & McTighe, 2006, pp ): As students are wrking n in-class hmewrk prblems, I will walk arund the class and ffer assistance and answer questins. This allws me t determine if we need t make a change t the schedule because the class is having difficulty with a sectin r if we can mve alng a little faster if the class is cmpleting activities faster than planned. This allws me t have a little ne-n-ne time with students wh typically wrk thrugh things a little slwer r take mre time t prcess infrmatin. Lessn Activities: Pre-Assessment Quiz Cmpleted befre class (10 minutes). Unit plan targets and essential questin briefing (5 minutes). Brief verview f the terminlgy/vcabulary (10 minutes). Brief verview f financial statements (15 minutes). 15-minute break. Break ut int grups f 2 fr mini-lessns and activities Mini-Lessn #1: Calculating breakeven pint in units. (10 minutes). Activity #1: Wrk thrugh hmewrk prblem t calculate breakeven pint in units (10 minutes). G ver answers t activity #1 (5 minutes). Mini-Lessn #2: Calculating desired prfits in units. (10 minutes). Activity #2: Wrk thrugh hmewrk prblem t calculate desired prfits in units (10 minutes). G ver answers t activity #2 (5 minutes). Mini-Lessn #3: Calculating breakeven pint and desired prfit in sales dllars. (15 minutes). Activity #3: Wrk thrugh hmewrk prblem t calculate breakeven pint and desired prfit in sales dllars (15 minutes) G ver answers t activity #3 (5 minutes). 15-minute break. Mini-Lessn Final Prject: Discuss expectatins fr final prject fr this unit (15 minutes) Wrk in grups n final prject fr this unit (remainder f class). Page 5 f 12

6 Materials Needed: Pencil/Pen Paper Calculatr Textbk Laptp with Micrsft Excel installed Can d attitude! Feedback Strategies Feedback strategies I will emply fr this lessn include: Prviding a rubric fr the final prject fr this unit at the beginning f class (Clumbia University, 2009, p. 1). While teaching each sectin f this class, I will teach it in a way that mdels hw I wuld handle the situatins if I were wrking as an accuntant (Clumbia University, 2009, p. 2). I will use technlgy t assist in teaching hw t d calculatins and present infrmatin (Pennsylvania Department f Educatin, 2013, p. 3). As we prgress thrugh the in-class activities, I will walk arund the classrm t ffer assistance and answer students questins. I will prvide cnstructive feedback t each student (Clumbia University, 2009, p. 2). I will prvide student engagement time where they wrk in grups t teach each ther as they wrk thrugh the in-class prblems (Pennsylvania Department f Educatin, 2013, p. 2). Because students will be wrking in small grups, I will encurage them t give each ther peer feedback while wrking thrugh the in-class prblems and the final prject (Clumbia University, 2009, p. 3). All f these strategies will give students multiple avenues f gaining knwledge while keeping the dr pen fr questins. Page 6 f 12

7 Sample final prject: 49P. Deciding where t prduce. (CMA, adapted) Prtal Crpratin prduces the same pwer generatr in tw Illinis plants, a new plant in Peria and an lder plant in Mline. The fllwing data are available fr the tw plants. Peria Mline Selling price Variable manufacturing cst per unit Fixed manufacturing cst per unit Variable marketing and distributin cst per unit Fixed marketing and distributin cst per unit Ttal cst per unit Operating incme per unit Prductin rate per day 400 units 320 units Nrmal annual capacity usage 240 days 240 days Maximum annual capacity 300 days 300 days All fixed csts per unit are calculated based n a nrmal capacity usage cnsisting f 240 wrking days. When the number f wrking days exceeds 240, vertime charges raise the variable manufacturing csts f additinal units by $3.00 per unity in Peria and $8.00 per unit in Mline. Prtal Crpratin is expected t prduce and sell 192,000 pwer generatrs during the cming year. Wanting t take advantage f the higher perating incme per unit at Mline, the cmpany s prductin manager has decided t manufacture 96,000 units at each plant, resulting in a plan in which Mline perates at maximum capacity (320 units per day * 300 days) and Peria perates at its nrmal vlume (400 units per day * 240 days). 1. Calculate the breakeven pint in units fr the Peria plant and fr the Mline plant. 2. Calculate the perating incme that wuld result frm the prductin manager s plan t prduce 96,000 units at east plant. 3. Determine hw the prductin f 192,000 units shuld be allcated between the Peria and Mline plants t maximize perating incme fr Prtal Crpratin. Shw yur calculatins. Page 7 f 12

8 APPENDIX 1: Pre-Assessment Quiz ACC226 Chapter 3 Breakeven Pint Quiz 1. T / F Fixed expenses d nt change in ttal when there is a mdest change in sales. 2. T / F Variable expenses change in ttal as vlume changes. 3. T / F Cntributin margin is defined as sales (r revenues) minus variable expenses. 4. T / F The break-even pint in dllars f revenues is equal t the ttal f the fixed expenses divided by the cntributin margin per unit. 5. T / F Break-even analysis is useful fr cmpanies that sell prducts, but it is nt useful fr cmpanies that prvide services. 6. T cmpute the unit cntributin margin, shuld be subtracted frm the sales price per unit. Only variable perid csts. Only variable inventriable prduct csts. All variable csts. All fixed csts. 7. On a cntributin margin incme statement, t what is cntributin margin equal? Fixed expenses plus variable expenses Sales revenues minus variable expenses Fixed expenses minus variable expenses Sales revenues minus fixed expenses. 8. Which f the fllwing statements is TRUE if the sales price per unit increases while the variable cst per unit and ttal fixed csts remain cnstant? The cntributin margin increases and the breakeven pint decreases. The cntributin margin decreases and the breakeven pint decreases. The cntributin margin increases and the breakeven pint increase. The cntributin margin decreases and the breakeven pint increases. 9. Which is the fllwing statements is TRUE if the fixed csts increase while the sales price per unit and variable csts per unit remain cnstant? The cntributin margin increases and the breakeven pint decreases. The cntributin margin decreases and the breakeven pint decreases. The cntributin margin increases and the breakeven pint increase. The cntributin margin decreases and the breakeven pint increases. Page 8 f 12

9 10. Which f the fllwing statements is TRUE if ttal fixed csts decrease while the sale price per unit and variable csts per unit remain cnstant? Cntributin margin increases. Cntributin margin decreases. Breakeven pint in units decreases. Breakeven pint in units increases. 11. Akrn Laser Wash sells deluxe car washes fr $15 per custmer. Variable csts are $9 per wash. Fixed csts are $40,000 per mnth. What is Akrn Laser Wash s cntributin margin per car wash? $0.40 $9.00 $6.00 $ Akrn Laser Wash sells deluxe car washes fr $15 per custmer. Variable csts are $9 per wash. Fixed csts are $40,000 per mnth. What is Akrn Laser Wash s cntributin margin rati? 40% 250% 6% 60% 13. Akrn Laser Wash sells deluxe car washes fr $15 per custmer. Variable csts are $9 per wash. Fixed csts are $40,000 per mnth. What is the prjected mnthly incme if 12,000 patrns visit the car wash each mnth? $180,000 $108,000 $72,000 Nne f the abve 14. The Sweet Factry prduces and sells specialty fudge. The selling price per pund is $20, variable csts are $12 per pund, and ttal fixed csts are $6,000. Hw many punds f fudge must The Sweet Factry sell t breakeven? 15, Page 9 f 12

10 Use the fllwing infrmatin t answer questins Selling price per unit $ Fixed expenses Selling & administrative $ 130,000 Interest expense $ 10,000 Variable expenses Cst f gds sld $ 4.00 Selling & administrative $ What is the cmpany s cntributin margin? 16. What is the break-even pint in units? 17. If the cmpany wants t ern a prfit f $42,000 instead f breaking even, what is the number f units the cmpany must sell? Use the fllwing infrmatin t answer questins Fixed expenses Rent $ 24,000 Salaries $ 40,000 Depreciatin $ 13,000 Variable expenses Cst f gds sld Supplies Sales cmmissins 58% f sales 7% f sales 5% f sales 18. What is the cmpany s cntributin margin? 19. What is the break-even pint in dllars? 20. If the cmpany wants t earn a prfit f $35,000 instead f breaking even, what is the amunt f sales r revenue dllars the cmpany must achieve? Page 10 f 12

11 APPENDIX 2: Rubric fr final prject Page 11 f 12

12 References Clrad career and technical educatin. (2010). Clrad career and technical educatin. Retrieved frm Clrad career and technical educatin: Clumbia University. (2009, Nv. 13). Hw t prvide cnstructive feedback-that wn t exasperate yur students. Retrieved frm Clumbia University: Pennsylvania Department f Educatin. (2013, Dec. 9). Secndary respnse t instructin and interventin (RtII)S: Tier 1 cre instructin. Retrieved frm Pennsylvania Department f Educatin: Standards Aligned System: Wiggins, G. (2012, Sep.). Seven keys t effective feedback. Feedback fr Learning, 70(1), Wiggins, G., & McTighe, J. (2006). Understanding by design (2nd ed.). Alexandria, VA: Assciatin fr Supervisin and Curriculum Develpment. Page 12 f 12