acc 207final project milestone twoguidelines and rubric overview 1552318

ACC 207Final Project Milestone TwoGuidelines and Rubric Overview: Classifying a company’s costs allows for an in-depth analysis of the impact that changes in output have on revenues, costs, and net income or net loss. A cost-volume-profit analysis willbe completed in order to determine the breakeven point. Relevant costs will be used to prepare a flexible budget. Additionally, an appropriate costing system should be selected and the choice should be substantiated with reasonable rationale. Finally, amemo should be prepared formanagementthatsummarizesthe results of the quantitative analysis and makesrecommendations for an optimal costing system to be ethically used by key decision makers.ForMilestone Two, you will analyzethe budget and actual costs usingtheMDE Manufacturing Budget(Tables I, II, III, IV).Determine where variances occurred and why. Submit the Student Workbookwith Tabs 3 and 4completedwith your budgets/variancesand a 1–2 page Word document that discusses the implications of your findingson MDE’s financial considerations.Explain which aspects of MDE’sbudgeting process are in need of improvement and justify your response usingyour calculations. Address all critical elementslistedbelowin Section II. Use Tabs 5 and 6ofthe Student Workbook for your budget and variance calculations. Specifically,the following critical elementsmust be addressed:II.Prepare and Performa)What are your fixed costs? Segregate them in the budget model. b)Determine how variable costschange as activity measures change. How can this information be applied? c)Create the budget model, ensuring fixed costs are hard coded into the model (variable costs are stated as a percentage of the relevant activity measures or as a cost per unit of activity measure). d)Add actual activitymeasures to the model. Make sure all information is added accurately. e)Add the flexible budget calculationsto the budget model. Make sure all information is accurate. f)Comparethe flexible budgetto the actual expenses. What doesthis inform? Be sure to discuss the following variances: i.Static budget variance,including sales volume and flexible budget variancesii.Price and efficiency variances for direct materials and direct labor iii.Spending and efficiency variances for variable manufacturing overhead g)Determine the aspects of the budgeting process that are in need of improvement. Justify your response. h)Interpret what budget variancesrepresent. Should all variances be investigated? Guidelines for Submission:Your paper must be submitted using the Student Workbook to present your budgets and variances and a 1–2 page Microsoft Word document with double spacing, 12-point Times New Roman font, and one-inch margins to explain your findings.Instructor Feedback:This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions.

RubricCritical ElementsProficient (100%)Needs Improvement(75%)Not Evident (0%)ValuePrepare and Perform: Fixed CostsIdentifies fixed costs and segregates them in the budget modelIdentifies fixed costs but does not segregate them in the budget modelDoes not identify fixed costs12Prepare and Perform: Variable CostsDetermines how variable costs change as activity measures change and describes how this information can be appliedDetermines how variable costs change as activity measures change but does not describe how this information can be appliedDoes not determine how variable costs change as activity measures change12Prepare and Perform: Budget ModelCreates a budget model and fixed costs are hard coded into the modelCreates a budget model but fixed costs are not hard coded into the modelDoes not create a budget model12Prepare and Perform: Actual ActivityAccurately adds actual activity measures to the model Adds actual activity measures to the model but contains errors related to accuracyDoes not add actual activity12Prepare and Perform: Flexible Budget CalculationsAccurately adds the flexible budget calculations to the budget modelAdds flexible budget calculations to the budget model but contains errors related toaccuracy Does not add flexible budget calculations to the budget model12Prepare and Perform: Compare Flexible BudgetCompares the flexible budget to the actual expenses, including key variances specified, and interprets what this informsCompares the flexible budget to the actual expenses but omits key variances or does not interpret what this informsDoes not compare the flexible budget to the actual expenses12Prepare and Perform: Budgeting ProcessDetermines the aspects of the budgeting process that are in need of improvement and justifies responseDetermines the aspects of the budgeting process that are in need of improvement but does not justify responseDoes not determine the aspects of the budgeting process that are in need of improvement12Prepare and Perform: Budget VariancesInterprets what budget variances represent and determines if all variances should be investigatedInterprets what budget variances represent but does not determine if all variances should be investigatedDoes not interpret what budget variances represent12Articulation of ResponseSubmission has no major errors related to citations, grammar, spelling, syntax, or organizationSubmission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideasSubmission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas4Total100%

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