+
ACCT640 – MANAGERIAL ACCOUNTING FALL 2013 CASE...

ACCT640 – MANAGERIAL ACCOUNTING FALL 2013 CASE...

Rating:
Rating
(0)
Author: Carol 96
Description:

Click link for more description

ACCT640 – MANAGERIAL ACCOUNTING FALL 2013 CASE #3 – PERFORMANCE DRINKS - A FURTHER STUDY OF: REGRESSION ANALYSIS

http://theperfecthomework.com/acct640-managerial-accounting-fall-2013-case-3-performance-drinks-a-further-study-of-regression-analysis/

ACCT640 – Managerial AccountingFall 2013Case #3 – Performance Drinks - A further study of:Regression AnalysisContribution Margin ReportingCost-Volume-Profit AnalysisDifferential AnalysisCapital BudgetingWritten by:Tim Bergsma, CMA, CFEAssistant Professor – AccountingDavenport UniversityDonald W. Maine – College of BusinessEmail: tbergsma@davenport.edu1Background:Performance Drinks, LLC is owned by Dave N. Port. Performance Drinks produces avariety of sports centered drinks. They began operations in 1993 shortly after Mr. Port graduatedwith his M.B.A. from Davenport University. The company saw early success as sports andfitness nutritional products gained new popularity in the 1990’s. Financially the company issound and has been wise in controlling their growth over the years. However, within the last 18months Mr. Port has noticed a drop in overall company profitability. This is especially troublingconsidering that the company has continued to experience top-line growth. Mr. Port and hismanagement team have been considering developing a new product line. However, those planshave been put on hold until they can figure out why their profits are shrinking.Performance Drinks makes four different kinds of sports drinks. Those drinks are asfollows:BasicHydrationIntensityPost-WorkoutEach of these drinks contains a slightly different nutritional profile and is targeted fordifferent users and uses. The Basic drink has the least nutritional benefit and is targeted forgeneral consumption. The Hydration product targets endurance athletes and specializes inhydration replacement. The Intensity product was designed with energy enhancement in mind. Itserves the needs of extreme athletes who need long durations of sustained energy. Lastly, the2Post-Workout product is a nutritional replacement product that is generally used followingexertion.Information Related to Case #2 (this section is the same as you received when you were assigned Case #2):You are the Controller for Performance Drinks. You feel as though you have a goodhandle on the financial reporting and the overall company performance. However, admittedly,your accounting information system has been designed to serve the needs of external users froman aggregate perspective. To that end you utilize absorption costing exclusively within theorganization. You recall studying the concept of Activity Based Management (ABM) andActivity Based Costing (ABC) while taking a managerial accounting course. You wonder ifapplying those ideas to your business would help to uncover the mystery of the disappearingprofits.You recall from your Management Accounting class that product costs are comprised of:

(more)
See More
Try a College Course Free

Sophia’s self-paced online courses are a great way to save time and money as you earn credits eligible for transfer to over 2,000 colleges and universities.*

Begin Free Trial
No credit card required

25 Sophia partners guarantee credit transfer.

221 Institutions have accepted or given pre-approval for credit transfer.

* The American Council on Education's College Credit Recommendation Service (ACE Credit®) has evaluated and recommended college credit for 20 of Sophia’s online courses. More than 2,000 colleges and universities consider ACE CREDIT recommendations in determining the applicability to their course and degree programs.

Tutorial