Why we need a HW forum

I'm going to spend the next two days filling this thread with reasons as to why we need a homework forum, but mostly it's just because having your notes or whatever accessible anywhere there's internet helps a bunch when you're working on something on campus and then again later at home.

Chapter 12: Preparing to Write Business Reports.

The purpose of a business report is to answer questions and solve problems systematically. There are generally two kinds of business reports:

• Informational Reports: present data without analysis or recommendations.
• Analytical Reports: supplies data, analysis, conclusions, and sometimes recommendations.

Business reports can be organized in a direct or indirect pattern based on the needs of the audience:

• Direct Pattern: Presents the intention of the report early on; best used when the reads are already informed, are supportive, or are "eager to have the results" before reading the rest of the report.
• Indirect Pattern: Presents any conclusions and or recommendations at the end of the report, rather than at the beginning. This pattern is best used when readers need to be educated about the topic, if they require persuasion, or if they are hostile to your point of view.

Direct patterns can be either informational or analytical, whereas indirect reports are always analytical. Reports can also be formal or informal based on the intended purpose, audience, and setting.

Formats:

• Letter Format: Use letter format for short (usually eight or fewer pages) informal reports addressed outside an organization. Prepared on office stationery, a letter report contains a date, inside address, salutation, and complimentary close. Although they my carry information similar to that found in correspondence, letter reports usually are longer and show more careful organization than most letters. They also include headings.
• Memo Format: For short informal reports that stay within organizations. Memo reports begin with essential background information, using standard headings: Date, To, From, and Subject. Like letter reports, memo reports differ from regular memos in length, use of headings, and deliberate organization.
• Manuscript Format: For longer, more formal reports. These reports are usually printed on plain paper instead of letterhead stationery or memo forms. They begin with a title followed by systematically displayed headings and subheadings.
• Printed Forms: Prepared forms are often used for repetitive data, such as monthly sales reports, performance appraisals, merchandise inventories, and personnel and financial reports. Standardized headings on these forms save time for the writer. Preprinted forms also make similar information easy to locate and ensure that all necessary information is provided.

Tips for Letter Reports:

• Use letter format for short informal reports sent to outsiders.
• Organize the facts section into logical divisions identified by consistent headings.
• Single-space the body (serial killer comment! ).
• Double-space between paragraphs.
• Leave two blank lines above each heading.
• Create side margins of 1 to 1.25 inches.
• Add a second-page heading, if necessary, consisting of the addressee's name, the date, and the page number.

Tips for Memo Reports:

• Use memo format for most short (ten or fewer pages) informal reports within an organization.
• Leave side margins of 1 to 1.25 inches.
• Sign your initials on the From line.
• Use an informal, conversational style.
• For direct analytical reports, put recommendations first.
• For indirect analytical reports, put recommendations last.

Guffey's 3-x-3 Writing Process:

1. Analyze the problem and purpose (scope, significance, and limitations).
2. Anticipate the audience and issues.
3. Prepare a work plan (includes a statement of the problem and of the purpose, a research strategy including a description of potential sources and methods of collecting data, a tentative implementation outline, and a final work schedule).
4. Implement your research strategy.
5. Organize, analyze, interpret, and illustrate the data.
6. Compose the first draft.
7. Revise, proofread, and evaluate.

Tips for preparing a Work Plan:

• Allow plenty of time for brainstorming and preliminary research whenever possible.
• Describe the problem motivating the report (reports are motivated? ).
• Write a purpose statement that includes the report's scope, significance, and limitations.
• Describe the research strategy including data collection sources and methods.
• Divide the major problem into subproblems stated as questions to be answered.
• Develop a realistic work schedule citing dates for the completion of major tasks.
• Review the work plan with whoever authorized the report.

Forms of data:

• Background or historical data.
• Statistics.
• Expert opinions.
• Individual or group opinions.
• Organizational data.

Summary of Learning Objectives:

1. Describe business report basics, including functions, patterns, writing style, and formats.
2. Apply Guffey's 3-x-3 Writing Process to business reports.
3. Understand where to find and how to use print and electronic resources of secondary data.
4. Understand where to find and how to use sources of primary data.
5. Recognize the purposes and techniques of documentation in business reports.
6. Illustrate reports with graphics that create meaning and interest.

Bring back the (my) study forum

Notes for First MTH182 Exam

System of Equations: A set of two or more equations with two or more unknowns. When graphed, the point of intersection between the two equations represents the possible solutions.

1. Graphs intersect at a single point: 1 solution.
2. Graphs do not intersect: no solutions in common (parallel lines).
3. The graphs intersect at more than one point: the lines are the same.

Systems of equations can be solved through the method of elimination, substitution, or graphing using a calculator with graphing utilities and an intersect feature. A graphic solution is "the point of intersection."

Consistent Dependent: infinite (limited) solutions.
Consistent Independent: 1 solution.
Inconsistent: no solutions.
- Equivalent Systems of Equations will have the same answer.

Gausian Elimination:

1. Interchange the equations.
2. Multiply one of the equations by a nonzero constant.
3. Add a multiple of one equation to another equation.

Row Echelon Form: A "stair-step" pattern with leading coefficients of 1. Each equation has one less term than the one above. The process of finding the solution of a system of equations in row echelon form is called backward substitution in linear algebra.

If an infinite number of solutions exist, express the solution in terms of a variable such as (-5a+22, -3a+7, a). Expressing the solution as "all real numbers" is incorrect.

Matrix: A rectangular array of elements. The order (or dimension) of a matrix describes the number of rows and columns. A matrix of order MxN has M-number of rows and N-number of columns. Rows are always listed first.

• Coefficient Matrix: A matrix consisting of just the coefficients of a linear system.
• Augmented Matrix: A matrix consisting of the coefficients AND constants on the right side of the equal sign.

Gausian Elimination Method for Matrices is called Elementary Row Operations since the two concepts originated independently of one another.

Row Echelon Form:

1. Any rows consisting entirely of zeros occur at the bottom of the matrix.
2. For each row that does not entirely consist of zeros, the first non-zero entity is a 1 (called the leading 1).
3. For two successive (non-zero) rows, the leading 1 in the higher row is farther to the left than the leading 1 in the later row.

Reduced Row Echelon Form: If a matrix that is in row echelon form has zeros above and below its leading 1s, then it is in Reduced Row Echelon Form.

The elements in a matrix can be denoted with lowercase subscripts identifying the row and column. For example, A23 is the element in the second row and third column. The matrix itself is identified with capital letters (such as [A] or [B] ).

Matrices are defined for addition, subtraction, and scalar (or "constant") multiplication. They are defined as follows: A + B = each element in A is added to its corresponding element in B. A - B = the elements in B are subtracted form the corresponding elements in A. For addition and subtraction, matrices must have the same dimensions.

Scalar Multiplication: The scalar, or constant, multiplies each entry in the matrix individually.

Dot Product: The dot product of two sets of numbers represents the product of the corresponding elements and then taking the sum of the result. The number of elements must be equal in each instance (the number of columns in the first matrix must equal the number of rows in the second matrix). The resulting matrix will have a number of rows equal to the first matrix and a number of columns equal to the second matrix.

Matrix A:
[1 2 3]
[4 5 6]

Matrix B:
[1 2]
[3 4]
[5 6]

When the matrices are multiplied, a 2x2 matrix will result.

Matrix C:
[22 28]
[49 64]

22 = 1(1) + 2(3) + 3(5).
28 = 1(2) + 2(4) + 3(6).
49 = 4(1) + 5(3) + 6(5).
64 = 4(2) + 5(4) + 6(6).

Chapter 13: Organizing and Writing Typical Business Reports.

Describing Numerical Data:

• Mean: Arithmetic Average.
• Median: Middle Point in the Continuum.
• Mode: Figure occurring with the highest frequency.

Tips for Writing Conclusions:

• Interpret and summarize the findings; tell what they mean.
• Relate the conclusions to the report problem.
• Limit the conclusions to the data presented; do not introduce new material.
• Number the conclusions and present them in parallel form.
• Be objective;s avoid exaggerating or manipulating the data.
• Use consistent criteria in evaluating options.

Tips for Writing Recommendations:

• Make specific suggestions for actions to solve the report problem.
• Prepare practical recommendations that will be agreeable to the audience.
• Avoid conditional words such as maybe and perhaps.
• Present each suggestion separately as a command beginning with a verb.
• Number the recommendations for improved readability.
• If requested, describe how the recommendations may be implemented.
• When possible, arrange the recommendations in an announced order, such as most important to least important.

The direct pattern is appropriate for informed or receptive readers; the indirect pattern is appropriate when educating or persuading.

Informational Reports:

1. Introduction/background.
2. Facts/findings.
3. Summary/conclusion.

Analytical Reports, Direct Pattern:

1. Introduction/problem.
2. Conclusions/recommendations.
3. Facts/findings.
4. Discussion/analysis.

Analytical Reports, Indirect Pattern:

1. Introduction/problem.
2. Facts/findings.
3. Discussion/analysis.
4. Conclusions/recommendations.

Logical Presentation of Information (a retarded and irrational rule ):

• By Time.
• By Component.
• By Importance.
• By Convention.

Providing Reader Cues:

• Introduction (tells the purpose of the report, describes the significance of the topic, and previews the main points and the order in which they will be developed).
• Transitions.
• Headings.

Informational Reports provide data on periodic and situational activities for readers who do not need to be persuaded. Periodic reports keep management informed of operations and activities (summarizes regular activities and events performed during the reporting period, describes irregular events deserving the attention of management, or highlights special needs or problems). Progress and Interim Reports describe ongoing projects to both internal and external readers.

Tips for Writing Progress Reports:

• Identify the purpose and the nature of the project immediately.
• Supply background information only if the reader must be educated.
• Describe the work completed.
• Discuss the work in progress, including personnel, activities, methods, and locations.
• Identify problems and possible remedies.
• Consider future activities.
• Close by telling the expected date of completion.

The Writing Process:

• Prewriting: Analyze, Anticipate, and Adapt.
• Writing: Research, Organize, and Compose.
• Revising: Revise, Proofread, and Evaluate.

Checklist for Writing Informational Reports:

• Introduction: Begin directly, provide a review, supply background data selectively, and divide the topic.
• Body: Arrange the subtopics logically, use clear headings, determine the degree of formality, and enhance readability with graphic highlighting.
• Summary/Conclusion: When necessary, summarize the report, and offer a concluding thought.

Analytical reports present information but emphasize reasoning, conclusions, and recommendations. Justification/recommendation reports follow the direct or indirect pattern depending on the audience and the topic.

Feasibility reports analyze whether a proposal or plan will work. A typical feasibility report presents the decision, background information, benefits, problems, costs, and a schedule.

Yardstick reports consider alternative solutions to a problem by establishing criteria against which to weigh opinions. Begin by describing the problem or need, explain possible solutions and alternatives, establish criteria for comparing the alternatives while explaining how the criteria were selected or developed, discuss and evaluate each alternative in terms of the criteria, and draw conclusions in order to make recommendations.

Checklist for Writing Analytical Reports:

• Introduction: Identify the purpose of the report, preview the organization of the report, and summarize the conclusions and recommendations for receptive audiences.
• Findings: Discuss pros and cons, establish criteria to evaluate alternatives, and support the findings with evidence, organize the findings logically and for readability.
• Conclusions/Recommendations: Draw reasonable conclusions from the findings, and make recommendations, if asked.

yes we need a hw forum, especially b/c i am going to need eregions knotes for when i start collage majoring in business.

All I'm doing is copying relevant stuff out of the textbooks or from lecture notes.

Chapter 1: Managerial Accounting.

Study Objectives:

1. Explain the distinguishing features of managerial accounting.
2. Identify the three broad functions of management.
3. Define the three classes of manufacturing costs.
4. Distinguish between product and period costs.
5. Explain the difference between a merchandising and a manufacturing income statement.
6. Indicate how cost of goods manufactures is determines.
7. Explain the difference between a merchandising and a manufacturing balance sheet.
8. Identify trends in managerial accounting.

Aspects of Managerial Accounting:

1. Explains manufacturing and non-manufacturing costs.
2. Computes the cost of providing a service or manufacturing a product.
3. Determines the behavior of costs and expenses as activity levels change and analyzing cost-volume-profit relationships within a company.
4. Accumulates and presents relevant data for management decision making.
5. Evaluates the impact on decision making of alternative approaches for costing inventory.
6. Determines prices for external and internal transactions.
7. Assists management in profit planning and formalizing these plans in the form of budgets.
8. Provides a basis for controlling costs and expenses by comparing actual results with planned objectives and standard costs.
9. Accumulates and presents data for capital expenditure decisions.

Each field of accounting deals with the economic events of a business. For example, determining the unit cost of manufacturing a product is part of managerial accounting. Reporting the total cost of goods manufactures and sold is part of financial accounting. The principal differences between financial accounting and managerial accounting are:

• Financial accounting prepares reports for external users; managerial accounting primarily supplies information to internal users.
• Financial accounting supplies financial statements on a quarterly and annual basis, while managerial accounting supplies internal reports as they are necessary.
• Financial accounting usually purtains to the businesss as a whole, is highly condensed, is limited to double-entry accounting and cost data, and follows GAAP guidelines. Managerial accounting usually pertains to subunits of a business, is very detailed, extends beyond double-entry accounting to any relevant data, and the "standard is relevant to the decision."
• Finally, financial accounting reports are audited by the CPA, whereas managerial accounting reports are not required to be independently audited.

The Three Management Functions:

• Planning: establish objectives.
• Directing: coordinate a company.
• Controlling: determines if planned goals are being met.

Corporate Organizational Structure:

• Stockholders.
• Board of Directors.
• Chief Executive Officer and President.
• General Counsel and Secretary, Vice President of Marketing, Vice President of Finance and the Chief Financial Officer, Vice President of Operations, and the Vice President of Human Resources.
• Treasurer and Controller.

Controller's Responsibilities:

• Maintain the accounting records.
• Maintain an adequate system of internal control.
• Prepare financial statements, tax returns, and internal reports.

New Legislation:

• Sarbanes-Oxley Act of 2002.
• Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management.

All Costs:

• Product Costs: manufacturing costs (direct materials, direct labor, and manufacturing overhead).
• Period Costs: Non-manufacturing costs (selling expenses, administrative expenses, etc).

In a merchandising business, you take "Beginning Merchandise Inventory" added to "cost of Goods Purchased" and subtract "Ending Merchandise Inventory" to obtain "Cost of Goods Sold." In a manufacturing business, you take "Beginning Finished Goods Inventory" added to "Cost of Goods Manufactured" and subtract "Ending Finished Goods Inventory" to obtain "Cost of Goods Sold."

Cost of goods manufactured schedule:

• Under "Direct Materials," add "Raw Materials Inventory, January 1" and "Raw Materials Purchases" to obtain "Total Raw Materials Available for Use." Then subtract "Raw Materials Inventory, December 31" to obtain "Direct Materials Used."
• List "Direct Labor."
• Under "Manufacturing Overhead," add "Indirect Labor," "Factory Repairs," "Factory Utilities," "Factory Depreciation," and "Factory Insurance" to obtain "Total Manufacturing Overhead."
• Add "Direct Materials Used," "Direct Labor," and "Total Manufacturing Overhead" to obtain "total Manufacturing Costs." Then add "Work in Process, January 1" and "Total Manufacturing Costs," to obtain "Total Cost of Work in Process." Subtract "Work in Process, December 31" from "Total Cost of Work in Process" to obtain the "Cost of Goods Manufactured."

Merchandising companies list "merchandise inventory" on their balance sheets, whereas Manufacturing companies list "inventories: finished goods, work in process, and raw materials."

Managerial Accounting Practices:

• The value chain:
  • Research, development and product design.
  • Acquisition of raw materials.
  • Production.
  • Sales and marketing.
  • Delivery.
  • Customer relations and subsequent services.
• Eenterprise Resource Planning (ERP).
• Just-in-Time Inventory (JIT).
• Total Quality Management (TQM): goal is to achieve zero product defects.
• Activity-Based Costing (ABC): beneficial because it results in more accurate product costing.
• Theory of Constraints: Identifying "bottleneck" constraints.
• Balanced Scorecard: performance-measurement approach that uses both financial and non-financial measures to evaluate all aspects of a company's operations in an integrated fashion.

Summary of Study Objectives:

1. Explain the distinguishing features of managerial accounting.
2. Idnetify the three broad functions of management.
3. Define the three classes of manufacturing costs.
4. Distinguish between product and period costs.
5. Explain the difference between a merchandising and a manufacturing income statement.
6. Indicate how cost of goods manufactures is determined.
7. Explain the difference between a merchandising and a manufacturing balance sheet.
8. Identify trends in managerial accounting.

Chapter 2: Job Order Cost Accounting.

Study Objectives:

1. Explain the characteristics and purposes of cost accounting.
2. Describe the flow of costs in a job order cost accounting system.
3. Explain the nature and importance of a job cost sheet.
4. Indicated how the predetermined overhead rate is determined and used.
5. Prepare entries for jobs completed and sold.
6. Distinguish between under- and overapplied manufacturing overhead.

Cost accounting involves the measuring, recording, and reporting of product costs. From the data accumulated, both the total cost and the unit cost of each product are determined. A cost accounting system consists of accounts for the various manufacturing costs.

The kinds of cost accounting:

• Job order cost system: ties costs to specific jobs.
• Process cost system: ties costs to specific processes.

Flow of costs in job order cost accounting:

• Purchases are debited to raw materials inventory, factory labor incurred is debited to factory labor, and actual overhead incurred is debited to manufacturing overhead (including depreciation insurance repairs, indirect materials used, indirect labor used, etc).
• Materials used is credited from raw materials inventory and debited to work in process inventory. Factory labor used is credited from factory labor and debited to work in process inventory. Overhead applied is credited from manufacturing overhead and debited to work in process inventory.
• Cost of completed jobs is credited from work in process inventory and debited to finished goods inventory. Cost of goods sold is credited from finished good inventory and debited to cost of goods sold.

In a job order cost system, manufacturing costs are recorded in the period in which they are incurred. Raw materials inventory is a general ledger account. It is also referred to as a control acco8nt because it summarizes the detailed data regarding specific inventory accounts in the subsidiary ledger (sums them all up in one account, basically). The subsidiary ledger consists of individual records for each item of raw materials. Postings are made daily to the subsidiary ledger. After all postings have been completed, the sum of the balances in the raw materials subsidiary ledger should equal the balance in the raw materials inventory control account.

In a manufacturing company, the cost of factory labor consists of (1) gross earnings of factory workers, (2) employer payroll taxes on these earnings, and (3) fringe benefits (such as sick pay, pensions, and vacation pay) incurred by the employer. Labor costs are debited to factory labor when they are incurred. For example, on Jan 31, factory labor is debited for $32,000 while factory wages payable is credited for $27,000 and employer payroll taxes payable is also credited for an additional $5,000. Factory labor is subsequently assigned to work in process and manufacturing overhead, as explained later in the chapter.

Manufacturing overhead costs can be recognized daily or periodically, depending on the source. Periodic costs are done using a summary entry, which summarizes the totals from multiple transactions. For example, on Jan. 31, manufacturing overhead is debited for $13,800; utilities payable is credited for $4,800, prepaid insurance is credited for $2,000, accounts payable is credited for $2,600, accumulated depreciation is credited for $3,000, and property taxes payable is credited for an additional $1,400. Manufacturing overhead is also a control account. The subsidiary ledger consists of individual accounts for each type of cost, such as factory utilities, factory insurance, and factory repairs.

Assigning manufacturing costs to work in process is done by crediting raw materials inventory, factory labor, and manufacturing overhead, while work in process inventory is debited for the full amount. Journal entries to assign costs to work in process are usually made and posted monthly.

A job cost sheet is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. Postings to job cost sheets are made daily, directly from supporting documents. A separate job cost sheet is kept for each job. Each entry to work in process inventory must be accompanies by a corresponding posting to one or more job cost sheets.

Parts of a job cost sheet:

• Job number.
• Item.
• For.
• Quantity.
• Date Requested.
• Date Completed.
• Dated direct materials, direct labor, and manufacturing overhead columns.
• Cost of completed job.
• Direct materials used.
• Direct labor used.
• Manufacturing overhead used.
• Total cost.
• Unit Cost.

Raw materials costs are assigned when the materials are issued by the storeroom. The requesting of raw materials is notated through the use of materials requisition slips. Direct materials will be charged to work in process inventory, and indirect materials to manufacturing overhead. A copy is retained in the storeroom as evidence of the materials released. After the requisition slips have been costed, they are posted daily to the materials inventory records. Also, requisitions for direct materials are posted daily to the individual job costing sheets.


parts of a materials requisition slip:

• Deliver to.
• Charge to.
• Requisition number.
• Date.
• Columns for the quantity, description, stock number, cost per unit, and total cost.
• Requested by.
• Approved by.
• Received by.
• Costed by.

Periodically, the requisitions are sorted, totaled, and journalized. For example, on Jan. 31, work in process inventory is debited for $24,000 while manufacturing overhead also debited for $6,000 and raw materials inventory is credited for $30,000 (to assign materials to jobs and overhead). Of the total direct materials debited to work in process inventory, $12,000 was requested by Job No. 101, $7,000 for Job No. 102, and $5,000 for Job No. 103 as noted by their job cost sheets.

Factory labor costs are assigned to jobs on the basis of time tickets prepared when the work is performed. The time ticket indicates the employee, the hours worked, the account and job to be charged, and the total labor cost. In many companies this data is accumulated through the use of bar coding and scanning devices. When direct labor is involved, the job number must be indicated.

Parts of a time ticket:

• Employee.
• Charged to.
• Date.
• Employee number.
• Job number.
• Columns for time (start, stop, and total hours).
• Two additional columns for hourly rate and total cost.
• Approved by.
• Costed by.

The time tickets are later sent to the payroll department. There, the total time reported for an employee for a pay period is reconciled with total hours worked, as shown on the employee's time card. Then the employee's hourly wage rate is applied, and the total labor cost is computed. Finally, the time tickets are sorted, totaled, and journalized.

The account work in process inventory is debited for direct labor, and manufacturing overhead is debited for indirect labor. For example, work in process inventory is debited for $28,000 and manufacturing overhead is also debited for an additional $4,000, while factory labor is credited for the total sum of $32,000. As in the case of direct materials, the postings to the direct labor columns of the job cost sheets should equal the posting of direct labor to work in process inventory.

In contrast with direct materials and direct labor, manufacturing overhead is related to production operations as a whole. As a result, overhead costs cannot be assigned to specific jobs on the basis of actual costs incurred. Instead, manufacturing overhead is assigned to work in process and to specific jobs on an estimated basis through the use of a predetermined overhead rate, which is based on the relationship between estimated annual overhead costs and expected annual operating activity. This relationship is expressed in terms of a common activity base, such as direct labor costs, direct labor hours, machine hours, or any other measure that will provide an equitable basis for applying overhead costs to jobs.

The predetermined overhead rate is established at the beginning of the year. Small companies often will have a single, company-wide predetermined overhead rate. Large companies, however, often have rates that vary from department to department. The predetermined overhead rate is obtained from the formula:

"Estimated Annual Overhead Costs" divided by "Expected Annual Operating Activity."

The predetermined overhead rate is applied to work in process and to specific jobs by multiplying the actual activity base used by the predetermined overhead rate in order to obtain the actual manufacturing overhead. For example, if direct labor cost is used as the activity base, and the annual overhead costs are expected to be $280,000 while direct labor costs are expected to be $350,000 the predetermined overhead rate is obtained by dividing 280,000 by 350,000 to obtain 80%. This means that for every dollar of direct labor cost, 80 cents of manufacturing overhead will be assigned to the job.

Manufacturing overhead is applied to work in process when direct labor costs are assigned. It also is applied to specific jobs at the same time. For example, $22,800 of direct labor costs would imply a total of $22,400 manufacturing overhead assigned to specific jobs (22,400 multiplied by 80%).

When a job is completed, the costs are summarized and the lower portion of the applicable job cost sheet is completed. When a job is finished, an entry is made to transfer its total cost to finished goods inventory by crediting work in process inventory and debiting finished goods inventory. Finished goods inventory is a control account, and controls individual finished goods records in a finished goods subsidiary ledger. postings to the receipts columns are made directly from completed job cost sheets.

Cost of goods sold is recognized when each sale occurs. The entires to record the sale and recognize cost of goods sold for Job 101 would be: debit to accounts receivable for $50,000 and a credit to sales for $50,000 - debit to cost of goods sold for $39,000 and a credit to finished goods inventory for the same amount. The units sold, the cost per unit, and the total cost of goods sold for each job sold are recorded in the issues section of the finished goods record.

Flow of documents: materials requisition slips, labor time tickets, and the predetermined overhead rate are summarized in the job cost sheet. Jobs completed are transferred to finished goods inventory to await sale.

At the end of a period, financial statements are prepared that present aggregate data on all jobs manufactured and sold. The cost of goods manufactured schedule in job order costing is the same as in chapter one with one exception: the schedule shows manufacturing overhead applied, rather than actual overhead costs. This amount is added to direct materials and direct labor to determine total manufacturing costs. The schedule is prepared directly from the work in process inventory account:

• Direct materials used, direct labor, and manufacturing overhead applied are added to obtain total manufacturing costs, which is then added to the beginning work in process inventory balance to obtain total cost of work in process.
• Ending work in process is subtracted from the total cost of work in process to obtain the cost of goods manufactured.

Underapplied manufacturing overhead occurs when the predetermined overhead rate did not assign enough money to cover expenses. Overapplied manufacturing overhead occurs when the predetermined overhead rate assigned too much money to cover expenses. Both are corrected by a year-end adjusting entry.

• Underapplied: cost of goods sold is debited and manufacturing overhead is credited.
• Overapplied: manufacturing overhead is debited and cost of goods sold is credited.

In preparing an income statement for the year, the amount reported for cost of goods sold will be the account balance after the adjustment for either under- or overapplied overhead.

Summary of Study Objectives:

1. Explain the characteristics and purposes of cost accounting.
2. Describe the flow of costs in a job order cost accounting system.
3. Explain the nature and importance of a job cost sheet.
4. Indicate how the predetermined overhead rate is determined and used.
5. Prepare entries for jobs completed and sold.
6. Distinguish between under- and overapplied manufacturing overhead.

Chapter 6: Business Networks and Telecommunications.

Learning Objectives:

• Describe business and home applications of digital telecommunications.
• Identify the major media and devices used in telecommunications.
• Explain the concept of protocols.
• Compare and contrast various networking and Internet services.
• List networking technologies and trends that are likely to have an impact on businesses and information management in the near future.
• Discuss the pros and cons of telecommuting.

Telecommunications is the transmittal of data and information from one point to another, referring to technologies which allow communication over a distance. Networking technologies have brought s4everal improvements to business processes in this area:

• Better business communications.
• Greater efficiency.
• Better distribution of data.
• Instant transactions.
• A more flexible and mobile workforce.
• Alternative (numerous) channels of communication.

Cellular phones derive their name from the territories of service providers, which are divided into areas known as cells. Each cell has at its center a computerized transceiver (transmitter-receiver), which both transmits signals to another receiver and receives signals from another transmitter. Many mobile phones have been merged with digital cameras, PDAs, and GPS (global positioning system) circuitry.

Videoconferencing is used to save on travel costs and lodging, care fleets, and the time of highly salaried employees, whether they work in different organizations or at different sites of the same organization. The increasing speed of internet connections makes it easy for anyone with a high-speed link to establish videoconferences by either using a peer-to-peer link or by using the services of a third party, a company that specializes in maintaining videoconferencing hardware and software.

Fax, or facsimile, is the transmission and reception of images over telephone lines. The receiving machine converts the digitized codes into images, and similarly transmits information. Faxing can also be executed through the internet using special software, and can be combined with scanning, printing, and copying functions in "multifunction" machines.

RFID (radio frequency identification) technology enables us to conclude transactions and to make payments very quickly. Telecommunications allows for the fast and reliable transfer of information necessary to operate such automated systems. RFID technology is also used in warehouses where employees can use handheld units to check a central system for the availability and location of items.

Peer-to-peer file sharing is done through the internet, through the use of special software applications. Using peer-to-peer file sharing, the software conducts a search for the file you wish to download. It finds several sources, and then downloads each segment of the file from a different source, decreasing the overall time of the download by a considerable extent.

Web-empowered commerce has also been made possible through the proliferation of telecommunications; increasingly fast digital communications enables millions of organizations to conduct business and individuals to research, market, educate, train, shop, purchase, and pay online. Whole new industries have been created thanks to this technology.

A communications medium is the physical means that transports the signal. The bandwidth of the medium is the speed at which data is communicated, which is also called the transmission rate, or simply the bit rate, and is measured in bits per second (bps).

• bps: bits per second.
• Kbps: thousands of bits per second.
• Mbps: millions of bits per second (mega bps).
• Gbps: billions of bits per second (giga bps).
• Tbps: trillions of bits per second (tera bps).

When a communications medium can carry only one transmission at a time, such as dial-up internet or ethernet computer network connections, it is known as baseband. When a line is capable of carrying multiple transmissions simultaneously, it is called broadband.

• Twisted par cable: high availability, low to medium bandwidth, high vulnerability to electromagnetic interference.
• Radio waves: high availability, medium to high bandwidth, low vulnerability to electronic interference (but vulnerable to RFI, radio frequency interference).
• Microwaves: low availability, high bandwidth, and low vulnerability to electromagnetic interference.
• Coaxial (TV) cables: high availability, high bandwidth, and low vulnerability to electromagnetic interference.
• Optical Fibers: moderate but growing availability, highest bandwidth possible, and immune to electromagnetic interference.
• Electric power lines (BPL): very high availability, high bandwidth, but also high vulnerability to electromagnetic interference.

Twisted pair cables are used in computer and telephone networks, and are comprised of insulated copper wires which are twisted together to reduce electromagnetic interference (EMI) and then encased in a plastic cover. They are flexible, reliable, and cheap.

Coaxial cables are used for cable television transmission, and is commonly called "cable." Television companies use the same network they employ to transmit television programming also to link households and businesses to the internet.

Fiber optic technology uses light instead of electricity to represent bits, and the lines are made of thin fiberglass filaments. A transmitter sends bursts of light using a laser or light-emitting diode device. This technology can allow internet connections into the range of Tbps.

Radio frequency (RF) technologies, such as those used by Wi-Fi and Bluetooth, use radio waves to carry bits. Microwaves are high-frequency radio waves that can carry signals over long distances with high accuracy. However, weather conditions can degrade communication quality.

Signals can also be transmitted using microwaves via satellite links. Geostationary (GEO) satellites keep place with the Earth's rotation, effectively staying stationary in relationship to the Earth. Low earth orbit satellites (LEO) are closer to the earth, and offer faster communications. Because LEO satellites revolve around the globe every few hours, multiple LEOs are required to maintain continuous coverage for uninterrupted communication.

Electrical power lines has just recently been tapped for telecommunications. The bits in an electric power grid are represented by electric impulses, but they must be distinct from the regular power that flows through the grid. In some regions of the United States, broadband service is offered through power lines. The service is referred to as Broadband over Power Line (BPL), or Power Line Communication (PLC).

A network is a combination of devices or nodes (computers or communication devices) connected to each other through one of the communication channels just discussed. Computer networks are classified according to their reach and complexity. There are three basic types of networks: LANs (local area networks), MANs (metropolitan area networks), and WANs (wide area networks). PANs (personal area networks) are sometimes added to this list.

A computer network within a building, or a campus of adjacent buildings, is called a local area network (LAN). They are set up by organizations to enhance communications among employees and to share IT resources. In office LANs, one computer is often used as a central repository of programs and files that all connected computers can use; this computer is called a server. When a LAN has a server, the server usually has centralized control of communications among the connected computers and between the computers and the server itself. A peer-to-peer LAN is one in which no central device controls communications.

Wireless LANs (WLANs) offer significant benefits: installation is easy, and you can move equipment wherever it is needed. Wireless networks also offer significant savings in some environments. Scalability is the ease of expanding a system. It is easy to add more nodes, or clients, to a WLAN, because all that is needed is wireless circuitry in any device that comes within range of a wireless network. However, WLANs can also be less secure than LANs.

A metropolitan area network (MAN) usually links multiple LANs within a large city or metropolitan region and typically spans a distance of up to 30 miles. For example, the LAN in a chemistry lab might be linked to a research hospital's LAN and to a pharmaceutical company's LAN several miles away in the same city to form a MAN. The high-speed links between LANs within a MAN typically use fiber optic or wireless broadband connections.

Wide area networks (WANs) are far-reaching systems of networks which can literally span continents. The simplest example of a WAN is a dial-up connection to a network provider's services over basic telephone lines. A more complex WAN is a satellite linkup between LANs in two different countries. The most well-known WAN is the Internet (capitalized! ).

A common carrier provided public telephone lines that anyone can access, and leased lines, which are dedicated to the leasing organization's exclusive use. Value-added networks (VANs) provide enhanced network services,fulfilling organizational needs for reliable data communications while relieving the organization of the burden of providing its own network management and maintenance. However, VANs cost much more than connections offered by Internet service providers (ISPs).

Personal area networks (PANs) are wireless networks designed for handheld and portable devices such as PDAs, cell phones, and tablet or laptop computers, and is intended for use by only one or two people. Transmission speed is low to moderate, and the maximum distance between devices is generally 33 feet.

Electronic data interchange: EDI. <---- That's pretty much self-explanatory.

Network interface cards (NICs) allow a device to connect to a network. A hub is a common device often used as a central location to connect computers or devices to a local network. A switch is like a hub, except that it is more intelligent. Communications that go through a hub are broadcast to all devices attached to the hub; communications through a switch go only to designated devices on the network. A bridge is a device that connects two networks, and a router routes data packets to the next node on their way to the final destination. Routers keep tables of network addresses, known as internet protocol (IP) addresses, which identify each computer on the network along with the best routes to other network addresses. A repeater amplifies or regenerates signals so that they do not become weak or distorted.

A modem, or modular demodulator, is a device whose purpose is to translate communications signals from analog to digital, and vice versa. Telephone lines, for example, handle continuous (analog) signals rather than digital signals, which consist of discrete bursts. Changing digital to analog is modulation, and changing analog to digital is demodulation. If you have DSL service, the device used is called a DSL modem, and if you use a power line it's called a BPL modem.

A virtual private network (VPN) only allows authorized users to access company resources. VPNs enable the use of intranets and extranets. An intranet is a network that uses Web technologies to serve an organization's employees who are located in several sites that might be many miles apart; an extranet serves both the employees and other enterprises that do business with the organization.

Switching Techniques:

• Circuit Switching: a dedicated channel (circuit) is established for the duration of the transmission.
• Packet Switching: a message is broken up into packets, groups of bits, and transmitted.
  • Destination address.
  • Source address.
  • Data.
  • Error Detection Bits.
• Frame Relay: high-speed flexible packet switching used in WANs.

A communications protocol is a set of rules that govern communication between computers or between computers and other computer-related devices that exchange data. Network protocols do the same thing for networks.

TCP/IP (transmission control protocol/internet protocol) is primarily used on the Internet. Transmission control protocol ensures that the packets arrive accurately and in the proper order, while internet protocol ensures delivery of packets from node to node in the most efficient manner by directing it through various hosts.

Every device on the Internet "backbone" is uniquely identified with a numerical label known as an internet protocol number (IP number), a 32-bit numeric address, presented in four parts separated by period. Domain name resolution enables you to replace a website's IP number with written text through DNS (domain name system). DNS servers are maintained by internet service providers (ISPs) and other organizations.

Servers and many other computers and devices are assigned permanent IP numbers, called a static IP number. A computer connected to the Internet intermittently might be assigned a temporary IP number for the duration of its connection only, and is known as a dynamic IP number. This way an IP number can be reassigned to someone else when you have disconnected from the internet.

CSMA/CD (carrier sense multiple access with collision detection) ensures that there are no collisions in transmission and that each device transmits without interfering with another (used with Ethernet LAN protocol).

IEEE 802.11 Wi-FI is a family of wireless protocols (Wi-Fi = wireless fidelity). A single Wi-Fi router can be connected to an access point (AP), which in turn is connected to a wired network and usually to the Internet, allowing tens to hundreds of Wi-Fi-equipped devices to share the same Internet link. A direct link to a wireless router or AP creates a hotspot.

IEEE 802.15 Bluetooh has a short range; examples are wireless keyboards.

IEEE 802.16 WiMAX (worldwide interoperability for microwave access) increases the range and speed of wireless communications, and uses licensed radio frequencies of 2-11 GHz.

IEEE 802.20 MBWA (mobile broadband wireless access) functions similarly to cell phone communications, because it controls communication from stationary towers. It provides mobile communications which is compatible with IP services. This should enable worldwide deployment of affordable, always-on wireless access.

Protocols:

• 802.11a 60-foot range, 54 Mbps speed, LAN.
• 802.11b 300-foot range, 11 Mbps, LAN.
• 082.11g 300-foot range, 54 Mbps, LAN.
• 802.15 Bluetooth: 33-foot range, 1 Mbps, LAN.
• 802.16 WiMAX: 31-mile range, 100 Mbps, MAN.
• 802.20 MBWA: global range, 4 Mbps, mobile voice, data, and internet communications.

Internet services:

• Dial-up: 56 Kbps, universal availability, $9-11 per month.
• Cable: 0.5-3 Mbps, widespread availability, $30-50 per month.
• DSL: 0.5-8 Mbps, more limited than cable, $30-50 per month.
• T1, T3: 1.544 Mbps/44.736 Mbps, widespread, $300-1,000/$3,000-10,000 per month.
• Satellite: 1 Mbps, widespread, $40-50 per month.
• Fixed wireless: 100 Mbps, limited, $2,000 per month.
• OC-3: 155.52 Mbps, limited availability, $60,000 per month.
• OC-12: 622.08 Mbps, limited availability, several hundred thousand dollars.
• OC-48, 2.488 Gbps, limited availability, several hundred thousand dollars.
• BPL: 3 Mbps, limited availability, $30-40 per month.

DSL: digital subscriber line.
T1 and T3 lines are point-to-point dedicated digital circuits provided by telephone companies.
Fixed wireless is point-to-point transmission between two stationary devices.
OC: optical carriers, using optical fibers.

RFID applications: Access control, tracking, livestock management, anti-theft measures, transportation of luggage, retail, pharmaceuticals, health care, shopping, product information, customer service, appliances, agriculture, waste management, etc.

Chapter 5: Business Software.

Learning Objectives:

• Explain the difference between application software and system software.
• Enumerate the different generations of programming languages and explain how they differ.
• Cite the latest major developments in application and system software.
• Clarify the differences between proprietary software and open source software.
• List characteristics that are important in evaluating packaged software applications for business use.
• understand the problem of software piracy and how it affects businesses and consumers.

Application software enables users to complete a particular application or task; system software enables application software to run on a computer and manages the interaction between CPU, memory, storage, input/output devices, and other computer components.

Machine language are series of bits and bites (binary). Assembly languages aggregated common commands into "words" for easier use. programming languages enable the use of English-like statements to accomplish a goal, and those statements are translated by special software into the machine language. Source code must be translated into object code (machine language) to be recognized. A compiler scans the entire source code, looks for errors, and then translates it into object code.

Programs designed to perform specific jobs are called application-specific software, in comparison with general-purpose application software (calculators compared to spreadsheets). Packaged software is readily available for purchase and/or download. Suites are a collection of several productivity (general-purpose application software) tools.

Hypermedia is a feature that enables a user to access additional information by clicking on selected text or graphics, and programs that can handle many different types of data are called multi-media software. Groupware applications are programs that enable workers to collaborate in real time over the Web.

Virtual Reality (VR) applications. <---- Also self explanatory.

3D graphic software.

System software includes programs that are designed to carry out general routine operations, as well as managing memory resources and operating peripheral equipment such as monitors and printers. The operating system (OS) is the single most important program that runs on a computer and the most important type of system software. A driver is the software that enables the OS to control a device, either one installed inside the computer box or an external device such as a flash memory drive.

Sample software evaluation form:

• Fitness for purpose.
• Ease of learning to use.
• Ease of use.
• Compatibility with other software.
• Reputation of vendor.
• Availability and quality of telephone and online support.
• Networking.
• Cost.

Chapter 4: Business Hardware.

Learning Objectives:

• List major hardware components of computers and explain their functions.
• Classify computers into major categories, and identify their strengths and weaknesses.
• Identify and evaluate key criteria for deciding what computers or related devices to purchase.
• Discuss the possible health hazards of computer use.

Computer Operations:

• Accept Data.
• Store Data and Instructions.
• Process Data.
• Output Data and/or Information.

Basic Computer Components:

• Output Devices.
• Input Devices.
• External Storage (CD/DVD Drive).
• External Storage (Hard Disk).
• Internal Memory (RAM and ROM chips).
• Central Processing Unit (Microprocessor Chip).

Measuring Amounts of Digital Data:

• 1 KB (kilobyte): 1,000 bytes.
• 1 MB (megabyte): 1,000,000 bytes.
• 1 GB (gigabyte): 1,000,000 bytes.
• 1 TB (terabyte): 1,000,000,000 bytes.
• 1 PB (petabyte): 1,000,000,000,000 bytes.
• 1 EB (exabyte): 1,000,000,000,000,000 bytes.

Supercomputers contain multiple processors that let them perform parallel processing and run at great speeds. Mainframe computers are less expensive than supercomputers, but also handle considerably more data. Midrange computers are primarily used as servers, and microcomputers are commonly personal computers (PCs). More powerful versions are sometimes called workstations. A notebook computer is a laptop, and a personal digital assistant is a PDA.

The CPU consists of two units: the control unit and the arithmetic logic unit (ALU). These units store and process data. Multithreading is when a CPU processes more than one program simultaneously.

The CPU conducts four functions in every cycle: fetch, decode, execute, and store. Each cycle is called a machine cycle. The rate of repetitive cycles is called frequency, or clock rate. One cycle per second is 1 hertz. Computer frequencies are measured in megahertz (MHz, millions of hertz), or gigahertz (GHz, billions of hertz).

A system clock synchronizes all the computer tasks so they don't interfere with each other, and is programmed to run operations at the maximum rate allowable. The data word is the maximum number of bits that the control unit can fetch from primary memory in one machine cycle. The word's size is determined by the size of the CPU circuitry that holds information for processing. Current microcomputers have words of 32 and 64 bits.

Computer power is determined mainly by the CPU clock rate and the amount of information the CPU can process per machine cycle. The system bus which is the electronic lines of traces used for communication inside the computer might also restrict machine power since they have a number of bits per machine cycle and clock rate. The combination of bus width and clock rate determines throughput, the number of bits per second that the bus can accommodate.

Computer speed is also measured in MIPS, millions of instructions per second. This measurement is often used to indicate overall processing speed because all factors that determine speed are considered: clock rate, data word size, and bus throughput, as well as other miscellaneous speed factors.

Types of Monitors:

• Cathode-Ray Tube (CRT).
• Flat-Panel Display.

Data Storage:

• Direct Access Storage (DAS).
• Network-attached storage (NAS).
• Storage area network (SAN).

RAID: Redundant array of independent disks.

Considerations in evaluating storage media:

• Use of stored data.
• Amount of data stored.
• Speed.
• United space and portability.
• Cost.
• Reliability and life expectancy.
• Trade-offs.

Storage media:

• Magnetic hard disk.
• Magnetic tape.
• optical tape.
• Recordable CDs.
• Flash memory.

Example of Hardware Evaluation Form:

• Power: speed, RAM capacity.
• Expandability.
• Ports.
• Ergonomics.
• Compatibility: with hardware, with software.
• Footprint.
• Support.
• Warranty.
• Cost.

Chapter 3: Business Functions and Supply Chains.

Learning Objectives:

• Identify various business functions and the role of ISs in these functions.
• Explain how ISs in the basic business functions relate to each other.
• Articulate what supply chains are and how information technology supports management of supply chains.
• Enumerate the purposes of customer relationship management systems.
• Explain the notion of enterprise resource planning systems.

Effectiveness defines the degree to which a goal is achieved.
Efficiency = Benefits / Costs.
Productivity specifically refers to the efficiency of human resources.

CRM: Customer Relationship Management.
Business Activities:

• Customer Relationship Management:
  • Marketing.
  • Sales.
  • Customer Service.
• Supply Chain Management:
  • Develop plans and schedules.
  • Develop material requirements and purchase.
  • Receive supplied raw materials and parts.
  • Pay for supplies.
  • Produce goods.
  • Pack and ship.
  • Bill and collect.

More acronyms from hell:

• CMS: cash management system.
• EFT: electronic funds transfer.
• CAD: computer-aided design.
• CAM: computer-aided manufacturing.
• SCM: supply chain management.
• MRP: material requirements planning.
• BOM: bill of materials.
• EOQ: economic order quantity.
• MRP II: manufacturing resource planning.
• MPS: master production schedule.
• JIT: just-in-time.
• RFID: radio frequency identification.
• EPC: electronic product code.
• ERP: enterprise resource planning.

Usefulness of business management systems:

• Interorganizational Supply Chain Management Systems:
  • Collaborative logistics.
  • Inventory.
• Human Resource Management:
  • Employee record management.
  • Promotion and recruitment.
  • Training.
  • Evaluation.
  • Compensation and benefits management.
• Customer Relationship Management:
  • Market research.
  • Targeted marketing.
  • Customer service.
  • Salesforce automation.
• Supply Chain Management:
  • Material requirements planning and purchasing.
  • Manufacturing resource planning.
  • Monitoring and control.
  • Shipping.
  • RFID in SCM.
• Finance:
  • Cash management.
  • Investment analysis and service.
• Engineering.
• Accounting.
• Effectiveness and Efficiency.

Chapter 2: Strategic Uses of Information Systems.

Learning Objectives:

• Explain what business strategy and strategic moves are.
• Illustrate how information systems can give businesses a competitive advantage.
• Identify basic initiatives for gaining a competitive advantage.
• Explain what makes an information system a strategic information system.
• Identify fundamental requirements for developing strategic information systems.
• Explain circumstances and initiatives that make one IT strategy succeed and another fail.

Information systems that help seize opportunities are often call strategic information systems (SISs). A company achieved strategic advantage by using strategy to maximize its strengths, resulting in a competitive advantage.

Basic ways to gain a competitive advantage:

• Reduce costs.
• Raise barriers to market entrants.
• Establish high switching costs.
• Create new products or services.
• Differentiate products or services.
• Enhance products or services.
• Establish alliances.
• Lock in suppliers or buyers.

Chapter 1: An Overview of Business Information Systems.

Learning Objectives:

• Explain why information systems are essential to business.
• Describe how computers process data into useful information for problem solving and decision making.
• Identify the functions of different types of information systems in business.
• Describe careers in information technology.
• Identify major ethical and societal concerns created by widespread use of information technology.

Information systems help organizations to seek and use information specifically to make sound decisions and to solve problems (any undesirable situation).

• Data: raw facts.
• Information: data manipulated so that it's useful.

A process is any manipulation of data, usually with the goal of producing information. A system is an array of components that work together to achieve a common goal. A subsystem is a smaller part of a system with its own subgoals.

Characteristics of Useful Information:

• Relevant.
• Complete.
• Accurate.
• Current.
• Economical.

Closed systems vs. Open systems.

An Information System (IS) consists of all the components that work together to process data and produce information. A database is a large collection of electronic records. The information map is the description of data and information flow within an organization. Information Technology (IT) is any technology which collectively facilitates the construction and maintenance of information systems.

The Four Stages of Processing:

• Input.
• Processing.
• Output.
• Storage.

Acronyms from Hell:

• TPS: transaction processing system.
• DSS: decision support system.
• BI: business intelligence.
• ES: expert systems.
• GIS: geographic information system.
• DBA: database administrator.
• CSO: chief security officer.
• CIO: chief information officer.
• CTO: chief technology officer.

Chapter 3: Process Cost Accounting (pages 93-101).

Study Objectives:

1. Understand who uses process cost systems.
2. Explain the similarities and differences between job order cost and process cost systems.
3. Explain the flow of costs in a process cost system.
4. Make the journal entries to assign manufacturing costs in a process cost system.

Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. In comparison, costs in a job order cost system are assigned to a specific job.

• Job Order Cost Flow: Direct Materials, Direct Labor, and Manufacturing Overhead are credited and Work in Process Inventory is debited; then credited as jobs are finished and Finished Goods Inventory is debited before being sold and moved into the Cost of Goods Sold account.
• Process Cost Flow: Same as above, except multiple Work in Process Inventory accounts are used to reflect the different departments which work on the product during the production process.

• Similarities: The manufacturing cost elements, the accumulation of the cost of materials, labor, and overhead, and the flow of costs.
• Differences: The number of work in process accounts used, documents used to track costs (summarized in a production cost report for each department rather than using job cost sheets), the point at which costs are totaled, and unit cost computations.

All raw materials issued for produciton are a materials cost to the producing depawrtment. Materials requisition slips may be used in a process cost system, but fewer requisitions are generally required than in a job order cost system, because the materials are used for processes rather than for specific jobs.

For example:

• Material Costs: Work in Process - Machining is debited for X amount, and Work in Process - Assembly is debited for X amount, while Raw Materials Inventory is credited for 2X amount.
• Factory Labor Costs: Work in Process - Machining is debited for X amount, Work in Process - Assembly is debited for X amount, and Factory Labor is credited for 2X amount.
• Manufacturing Overhead Costs: Work in Process - Machining is debited for X amount, Work in Process Assembly is debited for X amount, and Manufacturing Overhead is credited for 2X amount.
• Transfer to the Next Department: Work in Process - Assembly is debited and Work in Process - Machining is credited.
• Transfer to Finished Goods: Finished Goods Inventory is debited and Work in Process - Assembly is credited.
• Transfer to Cost of Goods Sold: Cost of Goods Sold is debited, and Finished Goods Inventory is credited.

Chapter 4: Activity-Based Costing.

Study Objectives:

1. Recognize the difference between traditional costing and activity-based costing.
2. Identify the steps in the development of an activity-based costing system.
3. Know how companies identify the activity cost pools used in activity-based costing.
4. Know how companies identify and use cost drivers in activity-based costing.
5. Understand the benefits and limitations of activity-based costing.
6. Differentiate between value-added and non-value-added activities.
7. Understand the value of using activity levels in activity-based costing.
8. Apply activity-based costing to service industries.

Activity-based costing (ABC) is a better method of appropriating an estimated manufacturing overhead ratio. Specifically, ABC allocates overhead to multiple activity cost pools, and then assigns the activity cost pools to products and services by means of cost drivers (any factor or activity that has a direct cause-effect relationship with the resources consumed).

Steps of ABC:

1. Identify and classify the major activities involved in the manufacture of specific products, and allocate manufacturing overhead costs to the appropriate cost pools (specifically, all activities which consume resources).
2. Identify the cost driver that has a strong correlation to the costs accumulated in the cost pool.
3. Compute the overhead rate for each cost driver.
4. Assign manufacturing overhead costs to products.

"Estimated Overhead Per Activity" / "Expected Use of Cost Drivers Per Activity" = Activity-Based Overhead.

1. Low-volume products often require more special handling, such as more machine setups and inspections, than high-volume products. Because of this, low-volume products frequently are responsible for more overhead costs per unit than high-volume products.
2. Assigning overhead using ABC will usually increase the cost per unit for low-volume products, compared with traditional overhead allocation. Therefore, traditional cost drivers such as direct labor hours are usually not appropriate for assigning overhead costs to low-volume products.

Benefits of ABC:

• More cost pools, and better understanding of allocation.
• Enhanced control over overhead costs.
• Better management data.

Limitations of ABC:

• Is more expensive and time-consuming than traditional cost accounting.
• Some arbitrary allocations will persist under ABC.

When to use ABC:

1. Product lines differ greatly in volume and manufacturing complexity.
2. Product lines are numerous, diverse, and require differing degrees of support services.
3. Overhead costs constitute a significant portion of total costs.
4. The manufacturing process or the number of products has changed significantly.
5. When the use of traditional cost accounting is causing management error.

Activity-Based Management (ABM) extends the use of ABC from product costing to a comprehensive management tool that focuses on reducing costs and improving processes and decision making.

Value-added activities increase the worth of a product or service to customers.
Non-value-added activities increase production costs without increasing market value.

Classification of Activity Levels:

• Unit-Level Activities are performed for each unit of production (such as assembling or painting.
• Batch-Level Activities are performed for each batch of products (such as inspections or equipment setups).
• Product-Level Activities are performed in support of an entire product line (such as product design or engineering changes).
• Facility-Level Activities are required to support or sustain an entire production process (such as plant depreciation or utilities).

An overhead budget is made up of columns for 1) Activity Cost Pools, 2) Cost Drivers, 3) Estimated Overhead, 4) Expected use of Cost Drivers per Activity, and 5) Activity-based Overhead Rates. Estimated Overhead is totaled.

Review of Summary Objectives:

1. Recognize the difference between traditional costing and activity-based costing.
2. Identify the steps in the development of an activity-based costing system.
3. Know how companies identify the activity cost pools used in activity-based costing.
4. Know how companies identify and use cost drivers in activity-based costing.
5. Understand the benefits and limitations of activity-based costing.
6. Differentiate between value-added and non-value-added activities.
7. Understand the value of using activity levels in activity-based costing.
8. Apply activity-based costing to service industries.
9. Explain just-in-time (JIT) processing.

Just-in-Time Processing requires dependable suppliers, a multi-skilled work force, and a total quality control system resulting in zero production defects. Benefits include significantly reduced or eliminated manufacturing inventories, enhanced product quality, rework and inventory storage costs are reduced or eliminated, and production cost savings are realized from the improved flow of goods through the processes.

Chapter 5: Writing Process Phase 1, Analyze, Anticipate, Adapt.

Objectives:

1. Identify three basics of business writing, summarize Guffey's 3-x-3 writing process, and explain how a writing process helps a writer.
2. Explain how the writing process may be altered and how it is affected by team projects.
3. Clarify what is involved in analyzing a writing task and selecting a communication channel.
4. Describe anticipating and profiling the audience for a message.
5. Specify six writing techniques that help communicators adapt messages to the task and audience.
6. Explain why communicators must adapt their writing in four high-risk areas.

Business Writing should be purposeful, economical, and reader-oriented.

Guffey's 3-x-3 Writing Process:

1. Prewriting:
   • Analyze.
   • Anticipate.
   • Adapt.
2. Writing:
   • Research.
   • Organize.
   • Compose.
3. Revising:
   • Revise.
   • Proofread.
   • Evaluate.

Scheduling the Process: 25% worrying and planning (Phase 1), 25% writing (Phase 2), 45% revising, and 5% proofreading (Phase 3).

Collaborative Writing is necessary for:

• Large tasks.
• Short deadlines.
• Projects requiring various individuals' expertise or consensus.

Selecting a communication channel:

• Importance of the message.
• Amount and speed of feedback required.
• Necessity of a permanent record.
• Cost of the channel.
• Degree of formality desired.

Channels of communication:

• Face-to-face conversation.
• Telephone call.
• Voice mail message.
• Fax.
• E-mail.
• Face-t-face group meeting.
• Video- or teleconference.
• Memo.
• Letter.
• Report or proposal.

By profiling your audience before you write, you can identify the appropriate tone, language, and channel.

Profiling:

• Primary Audience:
  • Who is my primary reader or listener?
  • What is my personal and professional relationship with that person?
  • What position does the individual hold in the organization?
  • How much does that person know about the subject?
  • What do I know about that person's education, beliefs, culture, and attitudes?
  • Should I expect a neutral, positive, or negative response to my message?
• Secondary Audience:
  • Who might see or hear this message after the primary audience?
  • How do these people differ from the primary audience?
  • How must I reshape my message to make it understandable and acceptable to others to whom it might be forwarded?

Ways to adapt to the audience include choosing the right words and tone; spotlighting reader benefits; cultivating a "you" view; and using sensitive, courteous language. Empathic communicators envision the receiver and focus on benefits to that person.

Biases to Avoid:

• Gender.
• Racial/Ethnic.
• Age.
• Disability.

Checklist for Adapting a Message to an Audience:

• Identify the message purpose.
• Select the most appropriate form.
• Profile the audience.
• Focus on reader benefits.
• Avoid gender and racial bias.
• Avoid age and disability bias.
• Express ideas positively rather than negatively.
• Use short, familiar words.
• Search for precise, vigorous words.

Chapter 6: Writing Process Phase 2, Research, Organize, Compose.

Objectives:

1. Apply Phase 2 of the 3-x-3 writing process, which begins with formal and informal methods for researching data and generating ideas.
2. Specify how to organize data into lists and alphanumeric or decimal outlines.
3. Compare direct and indirect patterns for organizing ideas.
4. Discuss composing the first draft of a message, focusing on techniques for creating offensive sentences.
5. Define a paragraph and describe three classic paragraph plans and techniques for composing meaningful paragraphs.

• What does the receiver need to know about this topic?
• What is the receiver to do?
• How is the receiver to do it?
• When must the receiver do it?
• What will happen if the receiver doesn't do it?

Formal Research Methods:

• Access Electronically.
• Search Manually.
• Investigate Primary Sources.
• Experiment Scientifically.

Informal Research Methods:

• Look in the Files.
• Talk with your Boss.
• Interview the Target Audience.
• Conduct an Informal Survey.

Generating Ideas by Brainstorming:

• Define the problem and create an agenda that outlines the topics to be covered.
• Establish time limits, remembering that short sessions are best.
• Set a quota, such as a minimum of 100 ideas. The goal is quantity, not quality.
• Require every participant to contribute ideas, accept the ideas of others, or improve on ideas.
• Encourage wild, "out of the box" thinking. Allow no one to criticize or evaluate ideas.
• Write ideas on flip-charts or on sheets of paper hung around the room.
• Organize and classify the ideas, retaining the best. Consider using cluster diagrams.

Tips for Activating Ideas:

• Analyze the ideas generated on the original cluster diagram.
• Cross out ideas that are obviously irrelevant; simplify and clarify.
• Add new ideas that seem appropriate.
• Study the ideas for similarities.
• Group similar ideas into classifications (such as Content, Development, and Form).
• If the organization seems clear at this point, prepare an outline.
• For further visualization, make sub-cluster circles around each classification.

Tips for Making Outlines:

• Define the main topic (purpose of message) in the title.
• Divide the main topic into major components or classifications (preferably three to five). If necessary, combine small components into one larger category.
• Break the components into sub-points.
• Don't put a single item under a major component; inf you have only one sub-point, integrate it with the main item above it or reorganize.
• Strive to make each component exclusive (no overlapping).
• Use details, illustrations, and evidence to support sub-points.

Alphanumeric outlines show major and minor ideas; decimal outlines show how ideas relate to one another.

Typical Major Components in Business Outlines:

• Opening, Body, and Closing.
• Step 1, Step 2, Step 3, and Step 4.
• Introduction, Facts, and Summary.
• Introduction/Problem, Facts/Findings, Conclusions, and Recommendations.
• Introduction, Proposed Solution, Staffing, Schedule and Cost, and Authorization.

Business messages typically follow either the (1) direct pattern, with the main idea first, or (2) the indirect pattern, with the main idea following explanation and evidence.

Comprehension Rate:

• 8 words: 100%.
• 15 words: 90%.
• 19 words: 80%.
• 28 words: 50%.

Use vivid words, label the main idea, place the important idea first or last in the sentence, and make sure the important idea is the sentence subject. Use the active voice for most business writing; use the passive voice to emphasize an action or the recipient of the action; use the passive voice to deemphasize negative news; use the passive voice to conceal the doer of an action.

Modifiers must be close to the words they describe or limit; a modifier is misplaced when the word or phrase it describes is not close enough to be clear. Effective paragraphs focus on one topic, link ideas to build coherence, and use transitional devices to enhance coherence.

The direct paragraph pattern is appropriate when defining, classifying, illustrating, or describing. The pivoting paragraph pattern is appropriate when comparing and contrasting. The indirect paragraph pattern is appropriate when delivering bad news.

Checklist for Composing Sentences and Paragraphs:

• Control sentence length.
• Emphasize important ideas.
• Apply active and passive verbs carefully.
• Eliminate misplaced modifiers.
• Develop one idea.
• Use the direct plan.
• Use the pivoting plan.
• Use the indirect plan.
• Build coherence by linking sentences.
• Provide road signs with transitional expressions.
• Limit paragraph length.

Chapter 7: Writing Process Phase 3, Revise, Proofread, Evaluate.

Objectives:

1. Apply Phase 3 of the 3-x-3 writing process, which begins with techniques to make a message clear and conversational.
2. Describe specific revision tactics that make a message concise.
3. Describe revision techniques that make a message vigorous and direct.
4. Discuss revision strategies that improve readability.
5. Recognize proofreading problem areas, and be able to list techniques for proofreading both routine and complex documents.
6. Evaluate a message to judge its success.

Be aware of clarity, as well as formal/informal conversational tones and conciseness. Also avoid fillers, long lead-ins, and redundancies. Reduce compound prepositions, purge empty words, and don't over-use nouns. Don't use trite expressions or phrases, and develop parallelism for balance. Use numbered and bulleted lists for quick comprehension, add headings for visual impact, improve readability with other graphic techniques, and use measuring techniques to evaluate readability.

Checklist for Revising Messages:

• Keep the message simple.
• Be conversational.
• Avoid opening fillers and long lead-ins.
• Shun redundancies.
• Tighten your writing.
• Don't convert verbs to nouns.
• Avoid trite phrases.
• Strive for parallelism.
• Highlight important ideas.
• Consider readability.

What to Watch for in Proofreading:

• Spelling.
• Grammar.
• Punctuation.
• Names/Numbers.
• Format.

I guess for big things this could be useful.

But if people need simple math/science help they should check Yahoo! Answers.

That site got me through like half of DE Chemistry.