Discussion and Assignment

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I. DISCUSSION:

To prepare for this Discussion: The Impact of Sunk, Opportunity, and Accounting Costs,” refer to your Learning Resources for this week, research and your professional experience. Then, select one of the following types of costs: sunk costs, opportunity costs, or accounting costs, and think about a scenario where this type of cost was important for informing decision making. Think about another scenario where this type of cost was important for furthering stakeholder agendas.

Prepare the following:

~Provide an explanation of a scenario of how the type of cost you have selected (sunk, opportunity, or accounting) has impacted an organizational decision.

~Provide an explanation of a scenario of how the type of cost you have selected (sunk, opportunity, or accounting) may be used to further stakeholder agendas.

II. ASSIGNMENT

For this Assignment, review this week’s Media, the Weekly Briefing, and the information in the scenario.

The Assignment:

Part 1: Calculate the break-even point for the toy company under each of the two different scenarios using a spreadsheet program such as Excel. Be sure to apply the appropriate accounting process to determine the break-even points.

Part 2: Recommend which option, based on the scenarios for the company, that you would select using a word processing program such as Word. Support your conclusion with both a written analysis and quantitative data.

References:

Zimmerman, J. L. (2011). Accounting for decision making and control (7th ed.). New York, NY: McGraw-Hill.

  • Chapter 2, “The Nature of Costs” (pp. 22–88)

SinoMedia. (2011). Price takers: Chinese companies are cushioning consumers from increasing input prices—but how long can they hold out? China Economic Review, 22(5), 14–15.

Laureate Education (Producer). (2014). Computing break-even

http://mym.cdn.laureate-media.com/2dett4d/Walden/WMBA/6050/06/mm/break_even/index.html

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