Search results for: 'Cost accounting'
Ingeniería de Motores S. A. is a company that manufactures small engines for other manufacturers of gardening products.
The case is dedicated to the possibility of externalizing a significant part of the manufacturing process to another company. Should they accept the offer of this supplier? How would this decision change if they could use the empty and unused space they have available?Academic Area:Cost Accounting & Management Control
AM Asesores CG1-148
This case goes into details of the profitability of the clients of AM Asesores. To resolve a never-ending argument between two departments, they decide to bring in an external third party who offers to alternatives to account and manage profitability in the company. The student will have to analyze the two options and argue for the one they consider best.Academic Area:Cost Accounting & Management Control
El Control de Gestión Estratégico: Planificación Est … CG2-131
Positive past results are less and less likely to produce positive results in the future. The success of a firm stands in its capacity to adapt to the environment at any given time and situation.
As a consequence, the role of management control has changed significantly and continues to do so. Faced with the, basically financial, management control of the 80s and 90s, it has evolved to become more strategic, and capable of answering to a firms current capacity to generate revenue. This will be achieved only if we measure and control the selected strategic path, and depends also on the capability to constantly reframe that path, through constant and adaptive strategic planning for every moment and situation.Academic Area:Cost Accounting & Management Control
The Terminus Hotel (B) CG1-130-B-I
The “Terminus” Hotel, a 200-room facility, is located within the city walls of one of the most impressive medieval towns in Southern Europe. As consequence of poor management and old-fashioned interior design, the Hotel experienced slumping demand since 2001. In 2004, the Hotel was on the brink of bankruptcy. In a sudden, these dark prospects turned into hopeful ones; the Hotel was located on a historic building and the regional authorities approached Mr. Leo D. Marcial, chair of the Chamber of Commerce, to mobilize local entrepreneurs in order to take over hotel ownership.
This part B analyzes a particular situation related to a couple of tour operators that propose to the hotel a regular booking of rooms per day, however at a discounted cost. This possibility was refused because of a recommendation of the accounting department, together with a later proposal with similar terms, though with a lesser discount. This short case offers information on fixed and variable costs and more information to analyze why management took this position so that the student can analyze it to agree or disagree on it.Academic Area:Cost Accounting & Management Control
Anthony Research CG1-104-M
An interactive exercise which encourages students to explore alternative designs for a job cost system. After studying the current cost system of a company students will simulate alternative approaches and monitor the effects on costs and profits. The material is based around four exercises:
- cost behavior and the classification of costs
- job cost systems
- tracing of additional costs
- alternative allocation bases
Through a series of questions (with feedback) students are encouraged to explore tracing different costs and allocation bases to make comparisons.Academic Area:Cost Accounting & Management Control
This material illustrates the Cost-Volume-Profit cost accounting model. In order to explain the main concepts and specific examples animations and interactive graphs are included. These graphs allow the student to change the initial conditions of the model and as such can help in making costing decisions.
This material is a useful tool for understanding the model as it includes not only theoretical knowledge but also practical exercises where students make decisions and receive feedback.Academic Area:Cost Accounting & Management Control
Cost or Expense? CG2-124-I-M
Cost or Expense? is an interactive technical note with the overriding objective of clarifying the concepts of costs and expenses in a company. The documentation is based around a decision-making diagram which attempts to structure the classification process.
An exercise section is included in which students can test their knowledge classifying elements for different types of companies. The material also includes a game where the student competes against the clock.Academic Area:Cost Accounting & Management Control
enRED@me is a social network designed to meet the needs of more mature Internet users. Users create a profile and participate in conversations in groups, creating community and friendships on a virtual platform. One of the challenges for the creators of this social network platform is how to monetize the process is a sustainable manner, especially as competitors begin to enter the market.
In this case, students are confronted with the challenge of how to structure the pricing and costs of an online platform in a way that produces sustainable profitability.
This case includes practical exercises that require students to link conceptual knowledge of management accounting procedures to real numbers. It challenges them to propose a solution which meets the goals and needs of the company.Academic Area:Cost Accounting & Management Control
Accounting as a source of Information for financiers DF2-162-I
The general accounts are a useful tool for the company and are intended as a source of information. This information has to follow a set of rules and principles and must be recorded using the principle of double-entry bookkeeping. The finance department’s guiding principle is to "maximize the long-term economic value for shareholders." To generate economic value in the long term, the returns obtained from management of the assets in the normal course of business must exceed the financial cost of the resources funding them.
This technical note explains how concepts of accounting are particularly useful to obtain certain financial information. It talks about general accounting and its guiding principles, the profit and loss account, the balance sheet, accounting statements, liabilities, equity, assets, accounting records, depreciation, provisions, investment and financing decisions and finally cash flows, weighted average cost of capital and discounted cash flow.Academic Area:Financial Accounting | Finance