ACC501 case 1,2,3,4,5 [ all 5 cases ]




You will begin by learning about financial accounting standards and current trends. Further, you are introduced to the annual report, which typically includes the audited financial statements. The submission should be 3-5 pages typed and double-spaced.

The following items will be assessed in particular:

There are two parts to this case.

Part I. Search the Internet. Discuss each of the following terms or concepts and their significance for the preparation of financial statements. In addition, comment on how the five terms or concepts below relate to each other.

1.Generally Accepted Accounting Principles (US GAAP)

2.International Financial Reporting Standards (IFRS)

3.Norwalk Agreement (October 2002)

4.Generally Accepted Auditing Standards

5.International Auditing and Assurance Standards

Part II. Refer to the following three sets of annual reports which contain the financial statements. Use the latest financial statements — for the year 2010, if available. First read an overview of the company so you are familiar with the company, its products/services and markets and then review the annual report and supplemental financial statements.




1.Briefly comment on the companies, the appearance and presentation of the annual reports.

2.How the terms and concepts defined in Part I affect the information reported the financial statements listed above?

3.Make three comparisons and reach three conclusions about each company from the financial information you find in the annual report. Prepare a table to summarize your findings.

4.Briefly comment on the ability to compare and contrast the information in your table.

.222222328186035px;”=””>ACC501CS2 – (3-5 pages typed and double-spaced courier new 12 font)

Case assignment expectations:

Cost Volume Profit Analysis and Costing for the 21st Century

Read all the required readings in the background materials about Cost Volume Profit Analysis. Make sure you understand this method and the breakeven analysis which goes with these concepts.

(n.a.) Calculating the Break-Even Point and the Contribution Margin, Retrieved”>

These site have detailed slide presentations of cost-volume-profit analysis.

Cost-Volume-Profit-Analysis, Retrieved from:”>”>

Review this site for a discussion on the preparation of a contribution form of income statement.

(n.a.) (2011)Contribution Margins, Small Business Owners Toolkit. Retrieved from:”>

Here is an excellent resource on CVP. Be sure to study all the links and samples.

(n.a.) (2011) Cost Volume Profit Relationship, Accounting for Management Retrieved from:”>

Now carefully read the following article:

Costing in new enterprise environment: A challenge for managerial accounting researchers and practitioners″>Krishan M Gupta,″>A Gunasekaran.”>Managerial Auditing Journal. Bradford:″>2005. Vol. 20, Iss. 4; pg. 337, 17 pgs

LENGTH: 3-5 pages typed and double-spaced

The following items will be assessed in particular:

  1. Based on the above article and your prior readings, do you agree with the notion of value costing for the 21st Century organizations. Why or Why Not?
  2. Also based on the above article and other readings, why types of situations may be more appropriate for application of the some of the “tried and true” costing methods of the 20th Century? Are these industry or firm specific?
  3. Is Cost-Volume-Profit Analysis still relevant in the 21st Century business organization? Support your answer with reasoned arguments and references as appropriate.

ACC501CS3 – (3-5 pages typed and double-spaced courier new 12 font)

Main Line vs. Basinger

In 1991, Main Line Pictures, Inc. sued actress Kim Basinger (and others) for breach of contract. Basinger had been in negotiation with Main Line to star in the film, “Boxing Helena” but had withdrawn from the project. The suit was heard in early 1993 in the Superior Court of the State of California, for the County of Los Angeles.

LENGTH 3-5 pages typed and double-spaced

The following items will be assessed in particular:

Be certain to incorporate concepts of sunk costs, historical costs, opportunity costs, and make-or-buy decisions as well as answer below questions of concern.

An analysis of plaintiff and defendants arguments as indicated below. Support your answers with financial computations where appropriate. Module 3 is an expansion on the contribution margin. So you can use CM income statement supporting your answers.

1.1) Should Main Line’s maximum and minimum lost profit amounts be revised downward for the following? Why?

  1. a. The domestic distribution revenues of $3 million because the deal had not been finalized.
  2. b. The $800,000 of foreign pre-sales because they were “probable” not actual.
  3. c. The loss of $2.1 million on the “Without Basinger” film.


1.2) Are the following relevant to the determination of lost profits to Main Line? Why?

  1. a. Basinger’s $3 million salary for “Final Analysis.”
  2. b. The comparison of revenues for Basinger films with revenues for Fenn films.

1.3) Is plaintiff’s expert correct in not attempting to estimate revenues for “Boxing Helena” beyond pre-sale amounts? Why?

1.4) Should Main Line’s lost profits be adjusted downward to include an estimate of domestic revenues for the “Without Basinger” film? Would it have been valid to use the $1.7 million advance against domestic revenues as the estimate? Explain.

1.5) Suppose Basinger had remained with the film and assume the $3 million profit shown in the plaintiff expert’s minimum damage calculation was correct. Is it reasonable to assume that Main Line’s pretax cash position would have increased by $3 million or would some part of this have been paid to others? Why?

1.6) If you disagree with the jury’s lost profit assessment, briefly prepare one of your own.

2. Don’t forget to attach the financial analysis and contribution margin income statement(s).

Background and Details for the Main Line vs. Basinger Case Assignment

For the Plaintiff (Main Line), Patricia L. Glaser, Attorney at Law:

ACC501CS4 – (3-5 pages typed and double-spaced courier new 12 font)

Case assignment expectations:

Below are several required readings on the topic of cost allocation. You are to read and review these readings and answer the questions below the readings in an integrated essay.

US Army Corps of Engineers – Walla Walla Project retrieved May 9, 2011”>

City of Seattle Budget for 2009 – 2010 retrieved may 9, 2011 from:”>

US Department of Human Services, Financial Accounting, Division of Cost Allocation retrieved May 9, 2011”> (search for Cost Allocations)

LENGTH: 3-5 pages typed and double-spaced

The following items will be assessed in particular:

Cost Allocation

  1. Why does the US Army Corp of Engineers worry about cost allocations? Aren’t they a branch of the US Federal Government? Why does it matter whether or not costs are allocated?
  2. The City of Seattle reading lists a series of costs and associated cost drivers for allocating these costs. Do you agree with the cost drivers (cost allocation factors)? Why do you suppose these drivers were selected? Does it make sense to have all of these individual costs and drivers identified or should there be a more uniform method of allocating costs? Why do they allocate costs anyway in a government (City Government) setting — aren’t cost allocation methods mostly for manufacturing companies?
  3. Why does the US Department of Human Services have a special division just for Cost Allocation? What are some of the ways in which they administer cost allocation for hospitals, colleges, and non-profit organizations?
  4. Is cost allocation only relevant for government agencies like those above? Why or why 
  5. ACC501CS5 – (3-5 pages double spaced courier new 12 font)

    Case assignment expectations:

    Carefully review the material in the link below.

    Review the Farm Financial Standards Council case study from the internet. John & Mary Farmer.

    LENGTH: 3-5 pages typed and double-spaced

    The following items will be assessed in particular:

    Farm Financial Standards Council Model Case

    1. Do you think that this case study with it proposed solutions will be useful to agricultural enterprises seeking to employ management accounting techniques? Why? Be specific in identifying benefits and possible drawbacks to the proposed solutions.

    1. If the Farm Council Case did not use Activity Based Costing, identify several dysfunctional decisions that could be made using traditional cost allocation. Which solution do you prefer, the initial or alternative solution proposed in the case? Explain the difference between the suggested solution and alternative solution.

    1. Read this article: Throw Out Fixed and Variable Cost Thinking—Bring In Activity-Based Costing for Distribution Decisions retrieved May 9, 2011 from:”> Now discuss the assertions this author is making in terms of variable and fixed costing and why ABC may make more sense in these type of settings. Justify your answer with good reasoning. You should attempt to integrate the thoughts of this article and your critique of it with the comments you make above.

    Support your arguments with references or examples as appropriate.



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