Applied Managerial Accounting

ACCT614-1501B-01 Applied Managerial Accounting

ACCT614-1501B-01

Applied Managerial Accounting

Quesadra D. Goodrum

Colorado Technical University

Class Discussion Phase 2

Professor: Angela McCaskill

02/25/2015

 

 

As The financial analysis here at EEC I am suggesting that all of EEC’s production activities be analyzed further. My reasoning that in doing so it will allow us to make some necessary vital decisions which will increase production in the needed areas. This will help us in the reduction the costs associated with manufacturing to increase our overall efficiency. The adjustment to our current procedural operations makes it necessary for us to take a further look at our cost behaviors. When production activities change whether it is a decrease and or and increase some of the associated costs may change while others remain the same (constant). This is the reason costs are divided into separate categories’ of fixed, variable, and mixed (Garrison, 2012). During the course of this discussion I will define each and list our accounts that are associated with them. In addition to this I will provide examples showing how changes in the sales volume will trigger a change in unit fixed and variable costs as well as total variable and fixed costs.

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