AC 401-Difference Between Contribution Margin and Gross- SU . Margin Questions-
this discussion have 2 part, read the story fist and answer the questions. Then I will provide 2 people’s answers, and you need to give some agreement or something you want to say.
Chapter 3 is about CVP analysis, tool management uses in predicting cost, volume and profits. Q1: What is the difference between contribution margin and gross margin (two sentences maximum)?
Chapter 4 is about accumulating cost using a job order costing system. Q2: How do you distinguish actual costing from normal costing under a job under costing system? (3 sentences maximum.)
Your initial post is due Wednesday, (9/16) before 11:58 pm and the reply post is due on Thursday, (9/17) before 11:58 pm.
You are expected to participate in discussions after having completed the assigned readings and cases. Discussion grades are based on completeness, grammar and quality of comments made. Comments that are redundant or non-quality will result in zero points for your grade. Discussions are due before 11:59 pm on the assigned due date. Late discussions receive zero points. There are 70 points possible; 7 weeks @10 points for the discussion grade. Also, reply posts receive zero points if there is not an initial post completed on time. Late discussions receive zero points. Use the guidelines below.
- Formatting: Format your discussions in the following ways:
- Times New Roman font, size 12
- Include your name
- Include references to credit any text, video, or other materials that you used as sources (including your textbook).
- Content: Your discussions will be graded based on the discussion rubric as well as the style of your writing.
- Mechanics: You are expected to use proper mechanics, and you will lose points for grammatical, spelling, or punctuation errors.
| Discussion Board Grading Rubric
for AC 401 |
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| CATEGORY | DESCRIPTION | |
| Format and Mechanics (2 points maximum) | Formatting as described above including font, name and reference(s). (2 points maximum) | |
| Connectedness (1 point maximum) | Citations from the readings, lectures, and other course materials are included that support postings and response to peer’s post. (1 point maximum) | |
| Content (1 point maximum) | Posts are factually correct, rich in content, full of thought, insight, analysis, depth, and detail. Postings clearly advance the discussion. (1 point maximum) | |
| Respect (1 point maximum) | Offers an opposing view in a respectful and professional manner; avoid sarcasm. (1 point maximum) | |
student 1:
Q1: According to the textbook (Datar, S. and M. Rajan 2018), The gross margin is a company’s revenue minus its cost of goods sold, which can measures how much a company can charge for its products over and above the cost of acquiring or producing. Contribution margin is the difference between total revenues and total variable costs, which indicates why operating income changes as the number of units sold changes.
Q2: According to the textbook (Datar, S. and M. Rajan 2018), The difference between costing a job with normal costing and actual costing is that normal costing uses budgeted indirect-cost rates that is calculated for each cost pool at the beginning of a fiscal year, and overhead costs are allocated to jobs as work progresses. However, actual costing uses actual indirect-cost rates which is calculated by dividing actual total indirect costs in the pool by the actual total quantity of the cost-allocation base calculated annually at the end of the year.
Reference: Datar, S.,and M. Rajan, 2018. Horngren’s Cost Accounting, A Managerial Emphasis (16th Ed).
student 2:
Q1: What is the difference between contribution margin and gross margin?
The contribution margin provides information for CVP and risk analysis and is defined as the difference between total revenues and total variable cost, Datar and Rajan (2018). The gross margin measures competitiveness and is defined as the difference between total revenue and the cost of goods sold, Datar and Rajan (2018).
Q2: How do you distinguish actual costing from normal costing under a job under a costing system?
The calculation of indirect costs is the distinguishing point between actual costing and normal costing under a job costing system. Actual costing calculates the indirect costs as actual indirect costs rates multiplied by actual quantities of cost allocation bases, Datar and Rajan (2018). Normal costing calculates the indirect costs as the budgeted indirect cost rates multiplied by the actual quantities of cost allocation bases, Datar and Rajan (2018).
