Essay Grade

IG009: Accounting Tools and Measures: Use managerial accounting tools and measures appropriately.
Assessment Rubric
0
Not Present
Part I: Performance Report and Variances
1
Needs Improvement
2
Meets Expectations
3
Exceeds Expectations
Sub-Competency 1: Prepare performance reports and variances.
Learning Objective 1.1:
Prepare a performance
report that shows
either favorable or
unfavorable variances.
Performance report is
missing.
Performance report is
missing the flexible budget
and/or actual budget or
the calculations are
inaccurate.
Variances are not
accurately calculated
and/or not identified as
favorable or unfavorable.
Performance report
accurately shows the
flexible budget and actual
budget.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Variances are accurately
calculated and
appropriately identified as
favorable or unfavorable.
Budgeted and actual
production volumes are
indicated.
Part II: Making Investment Decisions Using NPV, ARR, IRR, and Payback
Sub-Competency 2: Use net present value, accounting rate of return, internal rate of return, and payback to make investment decisions.
Learning Objective 2.1:
Calculate the net
present value.
Calculation is missing.
Calculation does not
accurately show the net
present value of the
project.
Calculation accurately
shows the net present
value of the project.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Response includes a brief
explanation of why this
method is or is not
preferred over the other
methods.
©2014 Walden University
1
Learning Objective 2.2:
Calculate the
accounting rate of
return.
Learning Objective 2.3:
Calculate the internal
rate of return.
Learning Objective 2.4:
Calculate the payback.
Learning Objective 2.5:
Make investment
decisions using
calculations.
©2014 Walden University
0
Not Present
Calculation is missing.
Calculation is missing.
Calculation is missing.
No investment decision is
indicated.
1
Needs Improvement
Calculation does not
accurately show the
average annual income
from the project divided
by the average annual
investment in the project.
2
Meets Expectations
Calculation accurately
shows the average annual
income from the project
divided by the average
annual investment in the
project.
Calculation does not
accurately show the
amount and timing of each
cash flow and/or the
internal rate of return.
Calculation accurately
shows the amount and
timing of each cash flow,
and the internal rate of
return.
Calculation does not
accurately show the
investment divided by
annual cash flows.
Investment decision does
not use all of the
calculations of net present
value, accounting rate of
3
Exceeds Expectations
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Response includes a brief
explanation about why this
method is inferior to the
discounted cash flow
methods.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Calculation accurately
shows the investment
divided by the annual cash
flows.
Calculation shows the
present value of each cash
flow.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Investment decision uses
calculations of net present
value, accounting rate of
return, internal rate of
Response includes a brief
explanation about why this
method is inferior to the
discounted cash flow
methods.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
2
0
Not Present
1
Needs Improvement
return, internal rate of
return, and payback to
indicate the decision that
promises the most return
on investment.
2
Meets Expectations
return, and payback to
indicate the decision that
promises the most return
on investment.
3
Exceeds Expectations
Response includes
strengths and weaknesses
of each method of
calculation.
Part III: Cost Centers, Profit Centers, and Investment Centers
Sub-Competency 3: Explain the differences between cost centers, profit centers, and investment centers.
Learning Objective 3.1:
Differentiate between
cost centers, profit
centers, and
investment centers.
Response differentiating
between cost centers,
profit centers, and
investment centers is
missing.
Response accurately
identifies cost centers,
profit centers, and
investment centers for a
specific company.
Response accurately
identifies cost centers,
profit centers, and
investment centers for a
specific company.
Response includes a clear
rationale that points out
only some of the
differences between cost
centers, profit centers, and
investment centers.
Response includes a clear
rationale that points out
the differences between
cost centers, profit
centers, and investment
centers.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Examples of each type of
center are given.
Part IV: Full Cost and Variable Cost Transfer Pricing Methods
Sub-Competency 4: Describe the effect of both full cost and variable cost transfer pricing methods.
Learning Objective 4.1:
Calculate both full cost
and variable cost
transfer pricing
methods.
Calculations of both full
cost and variable cost
transfer pricing methods
are missing.
Calculations are not
accurate for both full cost
and variable cost transfer
pricing methods.
Calculations are accurate
for both full cost and
variable cost transfer
pricing methods.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Response includes an
explanation of the purpose
of each method.
©2014 Walden University
3
Learning Objective 4.2:
Compare the two
transfer pricing
methods and
determine which
method minimizes tax
liability.
0
Not Present
Comparison of transfer
pricing methods is missing.
1
Needs Improvement
Comparison of transfer
pricing methods does not
accurately identify the
transfer pricing method
that minimizes the
combined tax liability.
2
Meets Expectations
Comparison of transfer
pricing methods correctly
identifies the transfer
pricing method that
minimizes the combined
tax liability.
3
Exceeds Expectations
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Computations do not
accurately show variances
using standard and actual
costs, and/or does not
include price, quantity,
wage rate, and labor
efficiency.
Computations accurately
show variances using
standard and actual costs,
and include price,
quantity, wage rate, and
labor efficiency variances.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Computation does not
show the break-even
point, separate variable
and fixed costs, or the
price at which the product
or service will need to be
sold to cover those costs.
Computation shows the
break-even point, separate
variable and fixed costs,
and the price at which the
product or service will
need to be sold to cover
those costs.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Response includes an
explanation of why the
transfer pricing method
was chosen and why it
minimizes tax liability.
Part V: Computing Variances Using Standard and Actual Costs
Sub-Competency 5: Compute variances using standard and actual costs.
Learning Objective 5.1:
Compute variances
using standard and
actual costs.
Calculations of variances
using standard and actual
costs are missing.
The variances are
identified as either
favorable or unfavorable.
Part VI: Break-Even Point
Sub-Competency 6: Compute the break-even point.
Learning Objective 6.1:
Compute the breakeven point.
©2014 Walden University
Calculations are missing or
are inaccurate.
4
0
Not Present
1
Needs Improvement
2
Meets Expectations
3
Exceeds Expectations
Response includes an
explanation of the breakeven point.
Writing reflects competent
use of standard edited
American English.
Grammar, spelling, and
mechanics reflect a high
level of accuracy in
standard American English
and enhance readability.
PS001: Written Communication: Demonstrate graduate-level writing skills.
Learning Objective
PS 1.1:
Use proper grammar,
spelling, and
mechanics.
Multiple major and minor
errors in grammar,
spelling, and/or mechanics
are highly distracting and
seriously impact
readability.
Multiple minor errors in
grammar, spelling, and/or
mechanics are distracting
and negatively impact
readability.
Learning Objective
PS 1.2:
Organize writing to
enhance clarity.
Writing is poorly organized
and incoherent.
Introductions, transitions,
and conclusions are
missing or inappropriate.
Writing is loosely
organized. Limited use of
introductions, transitions,
and conclusions provides
partial continuity.
PS003: Technology: Use technology tools effectively.
Learning Objective
Excel spreadsheet is
Excel spreadsheet has
PS 3.2:
incomplete or missing.
some formatting issues
Apply the features of
and is difficult to interpret.
Excel to communicate
information effectively.
Errors in grammar,
spelling, and/or mechanics
do not negatively impact
readability.
Writing is generally wellorganized. Introductions,
transitions, and
conclusions provide
continuity and a logical
progression of ideas.
Excel spreadsheet has
effective formatting, and
the data can be easily read
and interpreted.
Writing is consistently
well-organized.
Introductions, transitions,
and conclusions are used
effectively to enhance
clarity, cohesion, and flow.
Excel spreadsheet includes
format and design
elements that bring
enhanced clarity to the
spreadsheet.
PS005: Critical Thinking and Problem Solving: Use critical-thinking and problem-solving skills to analyze professional issues and inform best
practice.
Learning Objective
PS 5.1:
Analyze assumptions
and fallacies.
©2014 Walden University
Analysis of assumptions is
missing.
Response is weak in
assessing the
reasonableness of
assumptions in a given
argument.
Response generally
assesses the
reasonableness of
assumptions in a given
argument.
Response clearly and
comprehensively assesses
the reasonableness of
assumptions in a given
argument.
5
0
Not Present
Learning Objective
PS 5.2:
Generate reasonable
and appropriate
assumptions.
©2014 Walden University
Assumptions are missing.
1
Needs Improvement
2
Meets Expectations
Response does not
adequately identify and
discuss the implications of
fallacies or logical
weaknesses in a given
argument.
Response does not
adequately present and
discuss key assumptions in
an original argument.
Response identifies and
discusses the implications
of fallacies and/or logical
weaknesses in a given
argument.
Response presents and
discusses key assumptions
in an original argument.
3
Exceeds Expectations
Response provides a
detailed and compelling
analysis of implications of
fallacies and logical
weaknesses in a given
argument.
Response justifies the
reasonableness and need
for assumptions in an
original argument.
6
Overview
In this Performance Task Assessment, you will demonstrate your ability to use
managerial accounting tools and measures appropriately. You are strongly
encouraged to use the Academic Writing Checklist when completing this
Assessment.
Your responses to this Assessment should:
•
•
•
Reflect the criteria provided in the Rubric.
Adhere to the required length.
Conform to APA style guidelines. You may use the Walden Writing
Center’s APA Course Paper Template
Professional Skills: Written Communication, Technology, and Critical
Thinking and Problem Solving are assessed in this Competency
This Assessment requires submission of two (2) files. Save your files as
follows:
•
•
Save the Excel files for this Assessment as IG009_Excel_firstiniital_last
name (for example, IG009_Excel_J_Smith). On your Excel file, create a
tab for each spreadsheet, and label each tab with the appropriate part of
the Assessment.
Save the written parts for this Assessment in a Word document as IG009_
firstiniital_lastname. Use headings to identify each part of the
Assessment.
When you are ready to upload your completed Assessment, use
the Assessment tab on the top navigation menu.
Instructions
This Assessment includes 6 parts, each related to a different case scenario.
For each scenario, you will assume an important role with a fictional company
and analyze various aspects of that company using accounting tools and
measures. Parts I, II, IV, and V require you to make calculations using
spreadsheet software such as Excel. Part III, requires you to analyze various
types of centers for a specific company. Part VI requires you to analyze data
presented in the accompanying project documents and make decisions based
on that data. Access the IG009 Assessment Scenarios document provided
with this Assessment and analyze the appropriate scenario for each part.
This assessment has six parts. Click each of the items below to complete this assessment.
Part I: Performance Report and Variances
Access Part I of the IG009 Assessment Scenarios document. Honey Bear Confections (HBC) is a small
organization dedicated to making bear-shaped sweets with honey as a sugar substitute. You have just
been promoted to the position of manager of the production department at HBC when your supervisor
shows you a static budget report. She tells you to “get it fixed.” You suspect she is alluding to a problem
with productivity and efficiency. Review the “HBC Static Budget Report,” and then prepare a
performance report using spreadsheet software, such as Excel.
Part II: Making Investment Decisions Using NPV, ARR, IRR, and Payback
Access Part II of the IG009 Assessment Scenarios document. As the new product development manager,
you are considering investment proposals for two mutually exclusive investment opportunities. The two
proposals must be evaluated using net present value (NPV), accounting rate of return (ARR), internal
rate of return (IRR), and payback. Review the cash flow information in the “Investments” section of the
Assessment Scenarios document, and then analyze the investment proposals using Excel or another
spreadsheet software to calculate NPV, ARR, IRR, and payback. Write a report that presents your
findings (1–2 pages).
Your report should include the following:
•
Your calculations of NPV, payback, IRR, and ARR
•
An evaluation of each of the investment opportunities
•
Your recommendation for which investment opportunity should yield the highest
Note: Part II requires you to submit an Excel sheet tab and a section in Word. Be sure each is clearly
labeled when you submit your Assessment.
Part III: Cost Centers, Profit Centers, and Investment Centers
Select a company that you are familiar with, or do some research on a company you are interested in,
then determine what that company’s cost centers, profit centers, and investment centers are (there
may be more than one of each). Provide a rationale for your conclusions (3–4 paragraphs).
Part IV: Full Cost and Variable Cost Transfer Pricing Methods
Phipps manufactures circuit boards in Division A in a country with a 30% income tax rate and transfers
these circuit boards to Division B in a country with a 40% income tax. An import duty of 15% of the
transfer price is paid on all imported products. The import duty is not deductible in computing taxable
income. The circuit boards’ full cost is $1,000 and variable cost is $700; they are sold by Division B for
$1,200. The tax authorities in both countries allow firms to use either variable cost or full cost as the
transfer price. Using Excel or another spreadsheet software, prepare a summary that shows a
comparison of the full cost transfer pricing method and variable cost transfer pricing method. Your
summary should clearly show the total taxes the company would be subject to under each method.
Part V: Computing Variances Using Standard and Actual Costs
Access Part V of the IG009 Assessment Scenarios document. You are the senior controller for Healing
Touch, a manufacturer of high-quality products designed to help support healthy spines. Its newest
product offering is a massage chair and you plan to perform a variance analysis of the chairs
manufactured this month to determine if the standards are being met. Once you have completed the
analysis, you plan to show it to the production department manager and ask for an explanation of any
variances that you believe should be examined. Assuming that Healing Touch manufactured 500
massage chairs this month, use the data contained in Part V of the Assessment Scenarios document to
calculate all materials and labor variances in Excel (or other spreadsheet software). Be sure to include
price, quantity, wage rate, and labor efficiency variances.
Part VI: Break-Even Point
Access Part VI of the IG009 Assessment Scenarios document. Dr. Lucy Zang, a noted local podiatrist,
plans to open a retail shoe store specializing in hard-to-find footwear for people with feet problems,
such as bunions, flat feet, mallet toes, and diabetic feet. She has asked you to help her figure out what
sales need to be each month to keep the store open, and has given you some basic numbers to work
with. Using the estimates provided in Part VI of the Assessment Scenarios document, calculate the
amount of sales the Happy Feet store must do each month to break even.

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