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ACC 206 Ashford Wk 5 Budgets Product Costing Discussions

Wk 5 Discussion 1:Budgets [WLOs: 1, 2, 3, 4] [CLO: 6]Prior to beginning work on this discussion, read Chapter 22 in the textbook. In addition, the MyLab materials listed in the Recommended Resources section this week may provide more in-depth information for this discussion (optional).Write: Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate.A budget is a financial plan that managers use to coordinate a business s activities. Budgeting provides a plan for the company s future. The budgeting process coordinates a company s activities requiring managers at all levels to work together. Budgeting also provides a benchmark that helps managers evaluate performance.A master budget is a set of budgeted financial statements and supporting schedules. Budgets contain budgeted information, not actual amounts. The master budget contains three types of budgets, operating, capital expenditures and financial budgets.In your post,Explain each of the operating budgets, sales, production, direct materials, direct labor, manufacturing overhead, cost of goods sold, and selling and administrative expenses.Explain the capital expenditures and the financial budgets.Wk 5 Discussion 2:Product Costing [WLOs: 1, 2, 3, 4] [CLO: 4]Prior to beginning work on this discussion, read Chapters 21 and 22 in the textbook In addition, the MyLab materials listed in the Recommended Resources section this week may provide more in-depth information for this discussion (optional).Write: Make sure your response addressing the prompt is more than 200 words and that you include an in-text citation or a brief quote from the reading material where appropriate.As presented in Chapter 21, there are two methods of determining product cost: the absorption costing method and the variable costing method.Explain how costs are calculated using both methods.Which method is required by the generally accepted accounting principles (GAAP)?Develop an example in columnar format that compares the two methods of cost calculation using the following table:The unit product cost of the company is computed as follows:Absorption costingVariable costingDirect materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadTotal unit cost

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