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Managerial accounting: Benchmark-CLC Assignment: Decision Making Document Preview: Top of Form Benchmark-CLC Assignment: Decision Making 1 Unsatisfactory 0.00%2 Less than...

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Managerial accounting: Benchmark-CLC Assignment: Decision Making
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Top of Form Benchmark-CLC Assignment: Decision Making   1 Unsatisfactory 0.00%2 Less than Satisfactory 65.00%3 Satisfactory 75.00%4 Good 85.00%5 Excellent 100.00%80.0 %Content 20.0 %Introduction to the caseAn introduction to the case is not presented.The background on the case is presented but not developed to where the decision to be made is clear.The background on the case is presented, but the explanation does not demonstrate a clear understanding of the case materials.The background on the case is presented, and the explanation demonstrates a clear understanding of the case materials.The background on the case is presented, and the explanation demonstrates a superior understanding of the case materials.20.0 %Choice of analysesA basic understanding of the decision to be made is not demonstrated. The approach to the decision-making process is illogical or not demonstrated. No conclusion is drawn, or it is not based on the information presented in the case.A basic understanding of the decision to be made is not demonstrated. The approach to decision making is not presented, or it is illogical. Conclusions drawn are not valid or are not presented.A basic understanding of the decision to be made is demonstrated. A logical approach to the decision is presented. A valid conclusion is made.An understanding of the decision to be made is demonstrated. A logical approach to the decision is presented. A valid conclusion is made and well-supported by computations that are presented in an accepted format.A strong understanding of the decision to be made is demonstrated. A logical approach to the decision is presented and supported through the use of outside references. A valid conclusion is made and well-supported by computations that are presented in an accepted format.20.0 %Presentation of DataData to support the decision are not presented.Data presented to support the decision is incomplete or omits some requirements stated in the...

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Answered Same Day Dec 26, 2021

Solution

Robert answered on Dec 26 2021
117 Votes
ANSWER 1
For the purpose of decision making, the traditional income statements(based on absorption costing
principles) do not serve the purpose as the allocation of overheads to products on various basis make the
performance analysis misleading. The products which are actually profitable may be misjudged as loss
making products due to such allocated fixed costs. It may be preferable to use Contribution based income
statements for the purpose of decision making. Under these formats, we judge product wise contribution
as well as net contribution based on which continuity decisions may be taken. The company should
classify its expenses into Fixed and variable in order to attain an income statement that could be analyzed
more effectively.
INCOME STATEMENT (USING CONTRIBUTION APPROACH)
Q Gauge E gauge R gauge TOTAL
Sales price per unit 200 90 180
units sold 8000 10000 5000
Sales revenue 1600000 900000 900000 3400000

VARIABLE COSTS
Material 248000 170000 250000 668000
Labor 320000 200000...
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