Assessment 6 instructions: analysis and charting

 

Calculate a product’s break-even point, by sales units and by sales dollars, and construct a contribution margin income statement.

Introduction

Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

Analysis and charting are used to provide specific information to inform management decisions.

Activity-based systems provide managers with cost information for strategic decision making and planning that is not readily available with other costing methods.

Instructions

Note: Accounting requires specific steps that need to be executed in a sequence. The assessments in this course are presented in sequence and must be completed in order.

Use the Analysis and Charting Template [XLSX] to complete this assessment. This assessment focuses on cost analysis and behavior. Based on the data provided in the template, identify cost behaviors, estimate products, and prepare a contribution margin income statement.

Competencies Measured

By successfully completing this assessment, you will demonstrate your proficiency in the course competencies through the following assessment scoring guide criteria:

  • Competency 1: Analyze cost accounting systems.
    • Calculate a product’s break-even point by sales units.
    • Calculate a product’s break-even point by sales dollars.
  • Competency 4: Analyze financial statements.
    • Construct a contribution margin income statement showing sales, variable costs, and fixed costs at the break-even point.
  • Competency 5: Communicate in a manner that is professional and consistent with expectations for professionals in the field of accounting.
    • Communicate quantitative information accurately and effectively.

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