Need Answer in 7-8 hours -D3 is the doc for answering

Please find Chapter 5 and chapter 6 Notes attached along with this post

Write 300-350 words on the topic and respond to three articles with 150 words each

1) Write 300-350 words with 3 peer reviewed references in APA format

Write an analytical summary of your learning outcomes from chapters 5 and 6(Process Costing (continued) and Cost Behavior:). In addition to your analytical summary, address the following:

As a manager, discuss how you would use or have used the concepts presented in chapters 5 and 6(Process Costing (continued) and Cost Behavior:). Provide numerical examples to support your discussion.

While responding to this articles please follow this rules-

· Share an insight from having read your colleagues' postings, synthesizing the information to provide new perspectives.

· Offer and support an alternative perspective using readings from the class materials or from your own research.

· Validate an idea with your own experience and additional research.

· Make a suggestion based on additional evidence drawn from readings or after synthesizing multiple postings.

· Expand on your colleagues' postings by providing additional insights or contrasting perspectives based on readings and evidence.

2) Respond to 1st article with 150 words (Please post the peer reviewed reference along with response)-

In module 3, we discussed cost behavior. How is process costing used to track production costs and How do organizations identify cost behavior patterns. We learned that a process costing system is mainly used by companies that produce identical and similar units of products in multiple batches that employ a consistent method. A job costing system is used when a company provides different jobs or products (How Do Organizations Identify Cost Behavior Patterns? 2020). Accountants use the three inventory accounts to tract product cost information are raw materials, work in process inventory, and finished goods inventory. The three components of product costs are direct labor, direct materials, and manufacturing overhead. The main three basic cost behavior patterns are variable, fixed, and mixed (How Do Organizations Identify Cost Behavior Patterns? 2020).

A variable cost is a cost that differs in total with changes in the volume of activity. A fixed cost is nothing but a cost behavior pattern that is fixed in total with changes in the volume of business. We also discussed committed and discretionary fixed costs. A determined fixed cost is described as a fixed cost that can not easily be changed without having a much impact on the organization in the short run. Whereas, a discretionary fixed cost is described as a fixed cost that can be changed by having a significant effect on the organization in the short term. Mixed price is the third type of cist that describes a cost that has a mix of fixed and variable costs and behaves differently in both total, and per-unit costs change with changes inactivity (How Do Organizations Identify Cost Behavior Patterns? 2020). All three fixed, variable, and mixed cost concepts are used for short term decision making, which applies to a specific period. Whereas, a relevant rage is another important concept which is used when estimating costs. It is the range of activity likely to be accurate when cost behavior patterns (How Do Organizations Identify Cost Behavior Patterns? 2020).

As a manager, these cost behavior patterns help to accurately predict what costs will be in the future and also helps to answer many important questions. For example: FOr bikes, unlimited company managers might ask below questions (How Do Organizations Identify Cost Behavior Patterns? 2020). We can expect to see around 6 percent of the increase in sales per unit next year. How will this growth affect the company's revenue and costs? Using cost behavior patterns, as a manager, we can answer the above question. Managers make the right decisions when they know how costs are structured.

3) Respond to 2nd article with 150 words (Please post the peer reviewed reference along with response)

(Analytical Summary of Chapters Five and Six)

The proliferation of managerial accounting presents enormous dimensions and tools in enterprise systems, decisional making and management. Managerial accounting is a powerful intelligence realm that shapes profitability, financial pathways and general success for businesses. In the following text, the paper narrows down into two segments. Business management and profitability are interrelated aspects within the life of any business enterprise. Managerial accounting is a special tool that supports every aspect of decision making and financial costing. The first part is an analytical summary of the learning outcomes from chapters 5 and 6. The second part covers the role of the discussed concepts in the responsibilities of a manager.

Cost Behavior Patterns

At their disposal, business organizations have access to a trio of Cost Behavior Patterns (CBP). They are fixed, variable and mixed cost patterns. Inherently, businesses should always ensure that a common balance between the fixed and variable costs is attained. Fixed costs are critically essential and they should not be exaggerated. Variable costs give the business financial flexibility and extend to accommodate market demands and forces (Luis Castanheira et al., 2014). If a stable balance between the various variables is attained, the enterprise opens the doors for profitability and market growth.

Understanding cost equations is the route to good financial skills. Regardless of the level and capacity of production, all cost equations should be timely and incessantly succinct. Cost accountants are the stewards of any Cost Behavior Pattern. They are responsible of determining the relevant behavior and costing analysis of all factors of production. Interacting with the chapter gave an explicit picture of where each activity of production lies in the cost behavior patterns.

Cost-Volume- Profit (CVP) Analysis

The profit equation is a very important component of managerial accounting. The ingrained profit equation is employed extensively in CVP analysis. Excellent decision makers and managers have their decision making, investment and financial steps revolve around CVP analysis. Once an enterprise enjoys uninterrupted control and access to costing and production data, all cost estimates become an easy task.

To imperatively arrive at managerial accounting and CVP analysis graphical analysis on sales, break-point and contribution margins allows a mathematical approach in the eventual process of decision making. Plenty of learning outcomes are retrievable from the analysis realms. Generally, CVP analysis is a special tool that relates total revenues, total fixed and total variable costs (Enkeleda Lulaj & Etem Iseni, 2018). The analysis is suitable for all categories of Service and Multiple-Product companies. All through the CVP process, the cost accountants have to integrate the critical principles of Safety Margin and Sensitivity Analysis.

Using CVP Analysis and Cost Behavior Patterns in Managerial Decision Making

In the world of business, the practical impact of CVP and Cost Behavior Patterns shapes the performance and future of an enterprise. Profitable and charity businesses have a critical responsibility to keep themselves on the right economic, financial and cost behavior paths. Every manager has a role to play in shaping the business profit portfolio (Enkeleda Lulaj & Etem Iseni, 2018). Budget controls and calculations figures from CVP and Costing balances are fundamental. The ultimate process of budget and resource allocation is designed and controlled through the paradigms of the above phenomena. To do that, financial applications, analysis tools and statistical approaches are inevitable. The following is a statistical approach that a manager through cost/financial accountants can make an informed and strategically sound decision.

ABC Company is a case that is demonstrates how CVP and Costing Behavior. The High-Low Method is designed and statistically elaborated as shown below. With Total Overhead Cost = $262,400, Utilities = $86,400, Fixed supervisory salaries = 62,000 the June maintenance overhead = 262,400- (86, 400 +62,000) = $114,000. For Maintenance Cost, the High Point and Low Points = $114,000 and $78,000 respectively. The Machine-Hours are $ 80,000 and $ 50,000 respectively. The variable cost = (114,000 – 78,000)/ (80,000 – 50,000) = $ 1.20 per MHs. The variable cost values are used to determine of the cost estimates are directions to profitable margins.

4) Respond to 3rd article with 150 words (Please post the peer reviewed reference along with response)

Chapter 5

Cost behavior pattern and understanding the cost behavior pattern

Cost behavior pattern explains the changes that take place in the business and the operating expenses, or different events the cost behavior pattern remains stable. The cost behavior pattern changes, especially when the production level and the sales volume varies in the organization. The cost behavior pattern occurs in the variable, mixed, and the fixed expenses of the organization.

Fixed Cost

The fixed cost is happening from the production level or the sales volume. Some of the essential examples of the fixed cost are rent, fixed labor, loan, insurance, etc. even the property tax, internet expenses, depreciation on the equipment also covered as fixed costs by the organization. The fixed cost can be changed according to temporarily based on the changes that take place in the business activities.

Variable costs

Variable cost is the organization’s expenses that changes based on the production output.

The variable cost in total will change if the business activities change. For example, in the process of manufacturing, the value of the direct labor, the material directly corresponds to the production level, therefore if units are produced in huge, more labor and materials are required. In the same way, variable costs fluctuate depending on the machinery required, supplies, travel, and labor expenses (Relich, & Pawlewski, 2018).

Mixed Cost

Mixed cost is the combination of both the variable and fixed cost. The mixed cost will increase during the production level is high and vice versa.

Importance of understanding the cost behavior pattern

Understanding the cost behavior pattern helps the manager to achieve several purposes within the organization. As a manager, I feel that understanding the pattern will help in preparing the budget based on all the costs and results in profit maximization. By understanding the cost behavior pattern, we can easily set realistic production goals as well as the sales goals that will increase the overall profit of the organization.

A numerical example for the accounting analysis method

Units of output = 6,000

Cost of materials = $ 190,000

Cost of Direct Labor = $ 80,000

Costs of facilities = $ 30,000

According to the rule of thumb, the facility cost in fixed and the fixed cost is $30,000 and the variable cost is $270,000

Chapter 6

CVP analysis

CVP analysis or Cost-Volume-Profit analysis is one of the critical analysis used by the managers in making informed decisions to improve the productivity of the organization. CVP analysis is used to determine the changes that take place in the costs and volume and its impact on the net income and the operating income of the company. By performing the assumptions, the managers in the organization can make several assumptions. CVP analysis plays an essential role in managerial accounting compared to the financing accounting. The primary purpose of managerial accounting is to aid the managers in running the business, making smart decisions, and cost-effective moves. Managers use the CVP analysis to make effective decisions for the company. The decisions include all the costs including the overhead, administrative and manufacturing costs. With the help of CVP analysis, the cost is accurately identified, whether it is a fixed or variable cost (Kampf, Majerčák, & Švagr, 2016).

Managerial application of CVP analysis

Calculation of break-even point.

Fixed costs = $ 300,000

Target profit = $ 60,000

Contribution margin = $ 250

Break Even Point = {(300,000 + 60,000) / 250} = 1,440 units