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Hello everyone, I have an Assignment for you today. This assignment must be DONE by Wednesday, September 9, 2020, no later than 10 pm. By the way, I need this assignment to be PLAGIARISM FREE & a Spell Check when completed. Make sure you READ the instructions CAREFULLY. Now without further ado, the instructions to the assignments are below:

Business Process Costing

For this assignment, you will explain managerial concepts as they pertain to business process costing. You will select a business process, describe the inputs and outputs, and define the job roles. In your paper, you will evaluate the current process effectiveness, estimate the cost of the process, and propose any improvements for management’s consideration. Be sure you have reviewed the assigned chapters and required unit resources on business process management.


Consider a business process using a firm with which you are familiar. Business processes include the following tasks:

  • developing and managing products and services,
  • marketing and selling products and services,
  • managing customer service,
  • developing and managing human capital, and
  • managing information technology.

Once you have identified the firm and business process, select, describe, and discuss the business process by elaborating on the following information:

  • what starts and what ends the process (inputs and outputs),
  • what roles (jobs) participate in the process (map them),
  • the effectiveness of the current process,
  • the cost of the process (document any assumptions), and
  • any improvements for management consideration.

Your paper should be written in a Word document and should be a minimum of three pages in length. You should include at least two resources to support your paper. Adhere to APA Style when creating citations and references.

Below I have the Unit Study which you may utilize for this assignment 

BBA 2301, Principles of Accounting II 1

Course Learning Outcomes for Unit VI Upon completion of this unit, students should be able to:

5. Discuss managerial accounting concepts. 5.1 Describe cost-volume-profit (CVP) applications.

6. Differentiate cost behavior and cost systems.

6.1 Summarize CVP usage. 6.2 Summarize incremental analysis.

7. Explain how financial information influences both short-term and long-term management decisions.

7.1 Identify break-even points (BEPs).

Course/Unit Learning Outcomes

Learning Activity


Unit Lesson Chapter 22, pp. 22-1 to 22-25 Article: “What Is a Break-Even Analysis?” Video: Introduction to Cost Behavior – Fixed, Mixed and Variable Costs Unit VI Scholarly Activity


Unit Lesson Chapter 22, pp. 22-1 to 22-25 Video: How to Analyze a Business Process Unit VI Scholarly Activity

6.2 Unit Lesson Chapter 23, pp. 23-1 to 23-17 Unit VI Scholarly Activity


Unit Lesson Chapter 22, pp. 22-1 to 22-25 Article: “What Is a Break-Even Analysis?” Unit VI Scholarly Activity

Required Unit Resources Chapter 22: Cost-Volume-Profit, pp. 22-1 to 22-25 Chapter 23: Incremental Analysis, pp. 23-1 to 23-17 In order to access the following resources, click the links below. Berry, T. (n.d.). What is a break-even analysis? Bplans. https://articles.bplans.com/break-even-analysis/ For the video resources below, transcripts and closed captioning are available upon accessing the videos. Bridging the Gap. (2018, December 4). How to analyze a business process [Video]. Cielo24.

https://c24.page/55e675ug25xu6996jb6x2bfz6r Finance & Accounting Videos by Prof Coram. (2017, April 3). Introduction to cost behavior – Fixed, mixed and

variable costs [Video]. Cielo24. https://c24.page/bwhwmwjtcevz34hgpzxaa6hqg7


Management: Decision-Making in the Short-Termhttps://articles.bplans.com/break-even-analysis/https://c24.page/55e675ug25xu6996jb6x2bfz6rhttps://c24.page/bwhwmwjtcevz34hgpzxaa6hqg7https://c24.page/bwhwmwjtcevz34hgpzxaa6hqg7

BBA 2301, Principles of Accounting II 2



Unit Lesson

Introduction The previous lessons identified managerial accounting as the provisions of both economic and financial information provided to managers and other internal stakeholders. This unit continues your study of managerial accounting, including management concepts, cost behavior, the cost-volume-profit (CVP) toolset, and short-term decision-making. While management accountants are consultants inside the firm, their roles may be fulfilled by any number of professionals and managers. Specifically, in this unit, you will see opportunities for sales, product, and marketing managers (or senior professionals) to act as management accountants. Consider the questions below as you work through the unit lesson.

 As the chief marketing officer (CMO), what marketing programs will produce the best results in the coming year?

 What price will be optimum for each of your firm’s products (and services)?

Cost Behavior Analysis There are two principal cost behavior categories that you should learn; these include variable costs (VC) and fixed costs (FC). These cost behaviors are defined below.

 VC: These costs vary directly in proportion to the volume of activity. We can easily visualize some examples (e.g., materials used in food production at a restaurant, commission compensation to sales personnel based on production). Considerations when discussing variable costs are the costs per unit or the total variable costs. The VC per unit will be the same for the first unit produced, the fifth, or the hundredth. The total will be the VC per unit multiplied by the number of units.

 FC: These costs do not vary within a range of production; this is called the relevant range. Assume a factory building’s monthly depreciation is $1,000 and can be used to produce a maximum of 500 units. The total fixed costs from depreciation if the factory produces 50 units or 500 units is $1,000. On the other hand, the FC per unit will change with the production volume. For the production of 50 units, the FC per unit is $20; for the production of 500 units, it is only $2.

There is a third cost category, mixed cost. Just as the term indicates, a mixed cost has components of both VC and FC. A straightforward example is your monthly utility bill. If you examine it carefully, you will find a FC component. This base amount is on your bill every month, no matter how much or how little energy you use. Added to this base is the VC, which is usually the larger of the two amounts. Together, this fixed amount (the base amount) and the second amount (the variable amount) represents the total cost of the energy consumed. To conduct a proper cost analysis, you need to separate the VC and FC. There are a variety of ways to complete this cost analysis. The most popular and easiest method to conduct a cost analysis is the high-low method. You can read more about this method on pages 22-7 and 22-8 of the textbook.

CVP Analysis Why should you care about cost behavior? You need the data to use the CVP tools. In some firms, CVP is used by professionals skilled in its use, but more likely, it is used by sales, marketing, and product management professionals. You will explore some of the language and some illustrative examples.

BBA 2301, Principles of Accounting II 3



Components of CVP include volume or level of activity, unit selling prices, variable costs per unit, total fixed costs, and sales mix. Some assumptions underlie the use of CVP. These include that the VC and FC are constant within the relevant range of study and that we can accurately classify costs as variable or fixed. As with all accounting, the terminology often takes center stage. Performance results for a period are reported to management using a CVP income statement. With the additional cost behavior information, management is better equipped to make decisions. The traditional income statement includes sales revenue, less: total costs, and net income. The CVP income statement includes sales revenue, less: variable costs, contribution margin, less: fixed costs, and net income. The topline revenue and bottom-line net income are the same, but the CVP statement tells more. The CVP statement introduced contribution margin, which is simply the revenue minus the variable costs. If you set revenue at 100%, then you can compute each component’s percentage, which is called the contribution margin ratio. Further, knowing the production volume and individual selling price, you can compute a unit contribution margin. You will use these labels when conducting a CVP analysis.

Break-Even Analysis Perhaps the most common analysis performed is the break-even analysis. Review the following example. A new company is acquired (through purchase or manufacture), and the company then sells great widgets (a one-product company). The facts are listed below.

 Fixed costs are $24,000 for the month.

 The company sells widgets for $100 each.

 The variable cost for a single widget is $70. Common CVP questions to consider are listed below.

1. How many widgets must be sold to breakeven? 2. How many widgets would need to be made to make a $10,000 pre-tax profit?

The answer to question #1 is 800 widgets, and the answer to question #2 is 1,134 widgets. Do you agree? There are two additional concepts used in the introduction to CVP analysis, which are described below.

 Target net income: This is a variant on our break-even analysis. We simply add the target (desired) net income to our fixed costs and follow the same calculations.

 Margin of safety: This is another variant of the break-even analysis. Once we know the actual sales

revenue or forecast sales revenue, subtract the break-even revenue to determine the margin (in dollars).

Both of these variants are useful to management. You have reviewed significant and easy-to-use tools for sales, marketing, and product managers. Whether used with a small calculator, spreadsheet software, or pencil and paper, you can find many applications of CVP. Next, you will take a look at incremental analysis.

BBA 2301, Principles of Accounting II 4



Incremental Analysis This topic naturally pairs with cost behavior and CVP. Put yourself in the place of a product, market, or sales manager in a large consumer product manufacturer (e.g., Proctor & Gamble, General Motors). There are several decisions that are frequently made.

 Should we accept (or reject) an order at a special price?

 Should we make or buy components/parts or finished products?

 Should we sell products or process them further?

 Should we repair, retain, or replace equipment?

 Should we eliminate an unprofitable business segment or product? All of these are examples of operational (short-term) decisions (choices) that must be made. They represent relatively small changes in the firm, hence the label incremental analysis.

Decision-Making and Incremental Analysis When making a choice among alternative courses of action, you should consider both financial and non- financial information. This comes as a surprise to many when first exposed to managerial accounting, as the usual thought is that accountants only do financial numbers. See the graphic below, which depicts management’s decision-making process.

In Unit V, you learned that managerial accountants may be in any department of the firm or burrowed within a specific internal consulting staff. There are some additional cost concepts to consider when making these decisions. Consider the three cost concepts described below.

 Relevant cost and revenues: Simply stated, relevant cost and revenues consist only of those items that change based on the choice made.

 Opportunity cost: When one makes a choice, one result is giving up the alternative. The expected

benefit from the alternative path not taken is called the opportunity cost.

 Sunk costs: The costs incurred from a past decision should have no bearing on a current choice. It refers to funds spent that are not recoverable. However, the benefit of selling unneeded items due to the choice made do apply.

To summarize, you want to consider those items that change as the result of the alternative(s) selected. Activity-based costing (ABC) cannot be used in the preparation of a firm’s external financial statements, but it does produce beneficial information for decision-making. A frequent outcome of an ABC analysis is to increase the selling price of a low-volume product or service, and reduce the selling price of a high-volume product or service. While these actions may seem counterintuitive, they come from evaluating how different products generate specific overhead costs. If you have the opportunity to participate (or lead) an ABC study, do it! You may be surprised by the overhead allocation as contrasted to traditional overhead analysis!

BBA 2301, Principles of Accounting II 5



Conclusion Short-term decision-making is the timeframe with which you are naturally most comfortable. As consumers, you make these decisions (choices) almost every day! Now that you have some basic information about CVP, incremental analysis, and decision-making in the short-term, can you now answer the questions posed at the beginning of this lesson?

Reference Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2018). Accounting principles (13th ed.). Wiley.


Suggested Unit Resources In order to access the following resources, click the links below. For the video resources below, transcripts and closed captioning are available upon accessing the videos. The following video introduces the cost-volume-profit (CVP) tool and demonstrates how to use it. Gleim Accounting. (2016, May 3). The basics of cost-volume-profit analysis [Video]. Cielo24.

https://c24.page/9cyfztka46dnq72wwanh8q5567 Business process redesign is introduced in the following video. Prince, J. (2014. April 2). Michael Hammer and business process re-engineering [Video]. Cielo24.

https://c24.page/pyq4ex9eukvssteszeyqk6t35n Specific examples of incremental analysis are provided in the video below. Shirah, M. (2018, May 16). Incremental analysis – Make or buy [Video]. Cielo24.

https://c24.page/gpkcx5sxfz7ph7dxz2bfkrvksr The following video discusses how incremental analysis is used to solve a business problem. Shirah, M. (2018, May 16). Incremental analysis – Retain or replace equipment [Video]. Cielo24.


Learning Activities (Nongraded) Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit them. If you have questions, contact your instructor for further guidance and information. This is an opportunity for you to express your thoughts about the material you are studying by writing about it. Conceptual thinking is a great way to study because it gives you a chance to process what you have learned, and it increases your ability to remember it. In order to practice what you have learned, please attempt the exercises and problems below, which can be found in your textbook.https://c24.page/9cyfztka46dnq72wwanh8q5567https://c24.page/pyq4ex9eukvssteszeyqk6t35nhttps://c24.page/gpkcx5sxfz7ph7dxz2bfkrvksrhttps://c24.page/jjfbq63hzzm9aphg9826y6kprs

BBA 2301, Principles of Accounting II 6



Chapter 22:

 Brief Exercises (BE22.5), page 22-32

 Brief Exercises (BE22.7), page 22-32

 Brief Exercises (BE22.10), page 22-32

 Exercises (E22.10), page 22-36

 Exercises (E22.14), page 22-37

 Problems: Set A (P22.3A), page 22-39 Chapter 23:

 Brief Exercises (BE23.3), page 23-25

 Brief Exercises (BE23.7), page 23-25

 Exercises (E23.4), page 23-28

 Exercises (E23.16), page 23-31

 Problems: Set A (P23.2A), page 23-33 If you have any questions or do not understand a concept, contact your professor for clarification. Completing these practice exercises and problems will give you practice, which will be helpful as you complete the assignment for this unit.