Fundamental Managerial Accounting Concepts|Quick homework help

Posted: February 11th, 2023

Refer to the scenario located in the “Analyze, Think, Communicate” section 12-5 of Ch. 12, “Job-Order, Process, and Hybrid Costing Systems” of Fundamental Managerial Accounting Concepts. This scenario involves an altercation between Rene Alverez and Bill Sawyer and requires you to weigh in with calculations and comments on the matter.

Read the scenario in the textbook and complete the activity below.

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Compute the equivalent cost per unit, assuming the ending inventory is considered to be 40 percent complete.

Compute the equivalent cost per unit, assuming the ending inventory is considered to be 60 percent complete.

Write a 350-word summary of your calculations and findings. Comment on Mr. Sawyer’s motives for establishing the percentage of completion at 60 percent rather than 40 percent.

Submit calculations and summary



Managerial accounting is a field of accounting that provides financial information to a company’s internal stakeholders, such as managers and executives, to help them make informed business decisions. Here are some fundamental concepts of managerial accounting:

  1. Cost behavior: This refers to how costs change in response to changes in the level of business activity. Costs can be classified as either fixed or variable, based on their behavior.
  2. Cost-volume-profit (CVP) analysis: This is a method used to understand the relationship between a company’s costs, sales volume, and profitability. CVP analysis helps managers determine the breakeven point, or the level of sales needed to cover all costs.
  3. Budgeting: This is a process of creating a plan for a company’s future financial performance. Budgets are used to allocate resources, monitor progress, and make adjustments as needed.
  4. Standard costing: This is a method of accounting that involves setting predetermined standards for costs and comparing actual costs to those standards. This helps managers identify areas where costs are higher or lower than expected and make adjustments accordingly.
  5. Activity-based costing (ABC): This is a method of accounting that assigns costs to specific products or services based on the resources they consume. ABC is used to provide a more accurate picture of a company’s costs and is especially useful for companies that produce a variety of products.
  6. Capital budgeting: This is the process of evaluating investment decisions, such as investing in new equipment or acquiring another company. Capital budgeting decisions are typically long-term and have a significant impact on a company’s financial performance.

These are some of the fundamental concepts of managerial accounting. Understanding these concepts can help managers make informed decisions that improve a company’s financial performance.

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