- 26 Mar, 2021
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Assessment 7
Calculate absorption costing income and variable costing income. Construct and prepare an income statement for a calendar year.
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.
Businesses must track the costs of doing business and profits to plan for the future.
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By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 2: Apply sound budgeting principles.
Calculate absorption costing income and variable costing income.
Competency 4: Analyze financial statements.
Construct an income statement for each year using variable costing.
Prepare an income statement for a calendar year using variable costing.
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.
Competency Map
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Use this online tool to track your performance and progress through your course.
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Resources
Required Resources
The following resources are required to complete the assessment.
Capella Resources
You will use the following template to complete this assessment:
Variable Costing Conversion Template [XLSX].
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Suggested Resources
The resources provided here are optional and support the assessment. They provide helpful information about the topics. You may use other resources of your choice to prepare for this assessment however, you will need to ensure that they are appropriate, credible, and valid. The BUS-FP4061: Managerial Accounting Principles Library Guide can help direct your research. The Supplemental Resources and Research Resources, both linked from the navigation menu in your courseroom, provide additional resources to help support you.
Standard Costs
The following resources provide information about costing related to standard costs.
Bragg, S. M. (2010). Accounting best practices (6th ed.). Hoboken, NJ: Wiley.
Chapter 14, “General Best Practices.”
Gopal, R. C. (2009). Accounting for managers (Starting from basics). New Delhi, India: New Age International.
Chapter 15, “Standard Costing and Variance Analysis.”
Chapter 17, “Zero-Based Budgeting.”
Tiffin, R. (2007). The finance and accounting desktop guide. London, UK: Thorogood.
Chapter 8, “Costing for Planning.”
Standard Costs and Variances
The following resources provide information about standard costs and variable costing. Available from the bookstore.
Garrison, R., Noreen, E., & Brewer, P. (2021). Managerial accounting (17th ed.). McGraw- Hill.
Chapter 10, “Standard Costs and Variances.”
Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2018). Accounting principles (13th ed.). Wiley.
Chapter 26, “Standard Costs and Balanced Scorecard.”
Wild, J. J., Shaw, K. W., & Chiappetta, B. (2019). Financial and managerial accounting: Information for decisions (8th ed.). McGraw-Hill.
Chapter 19, “Variable Costing and Analysis.”
Assessment 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 Variable Costing Conversion Template, linked in the Resources under the Required Resources heading, to complete this assessment.
Assessment 8
Prepare a master budget and a flexible budget in this two-part assessment.
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.
A master budget is a management tool for planning. A flexible budget provides crucial information for differing levels of business activity.