ACCT COST

DQ

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Shared Practice: The Impact of Sunk, Opportunity, and Accounting Costs

A wise manager is one who keeps a check on costs and makes informed decisions based upon the understanding of these costs.

To prepare for this Discussion, “Shared Practice: The Impact of Sunk, Opportunity, and Accounting Costs,” refer to your Learning Resources for this week, research in the Walden library, 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.

By Day 3

Post 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.

Assignment: Break-Even Analysis

When expenses and revenues are equal, this is known as the “break-even point” or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relationship to revenues is necessary. Understanding where the BEP is for a given product or service helps managers determine how to make modifications to increase profitability.

For this Assignment, review this week’s Media, the Weekly Briefing, and the information in the scenario posted in the entry titled Week 6 Assignment located in the Doc Sharing link.

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.

By Day 7

Submit your Assignment (both your Excel and Word files).

Note: Submit your Excel spreadsheet to the Week 6 Assignment Part 1 submission link. Submit your Word document to the Week 6 Assignment Part 2 submission link.

General Guidance on Assignment Length:

Your Assignment, due by Day 7, will typically be 2–3 paragraphs in length as a general expectation/estimate for each bullet point. Refer to the rubric for the Week 6

Assignment for grading elements and criteria. Your Instructor will use the rubric to assess your work.

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