Computerized Managerial Accounting Projects Using Microsoft Great Plains Dynamics 1st Edition

Author

Stacy E. Kovar
ISBN# 978-0-912503-19-6

A computerized managerial accounting practice set that includes and uses a full operating version of Microsoft Great Plains Dynamics, Version 6.0 (commercially available accounting software for mid-size companies).

   Chapter 1 – Introduction
   Chapter 2 – Installation
   Chapter 3 – Familiarization
   Chapter 4 – Creating Reports
   Project 1 – Job Order Costing
   Project 2 – Activity–Based Costing
   Project 3 – Process Costing
   Project 4 – Cost Behavior
   Project 5 – Variance Analysis
   Project 6 – Performance Evaluation

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   · Highly respected computerized accounting software for medium-sized businesses. Great Plains was purchased by Microsoft in 2001
   · More sophisticated than most accounting software for small businesses. A typical application costs several thousand dollars installed.
   · Relevant for accounting majors who will be working in industry or a CPA firm.
   · Easy for students to learn and use. Instructions are provided with materials.

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Because there is no comparable product on the market, a price comparison is not possible. There are other accounting supplements available to students that are somewhat similar in length, but they do not include Microsoft Great Plains Dynamics software.

Many managerial accounting educators want students to be exposed to a working computerized management accounting information system to reinforce key managerial accounting concepts using a realistic, active learning case, and teach students to use Microsoft Great Plains Dynamics. This supplement does that.

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Depending on the focus, these projects can be used in any managerial accounting course. The projects were designed primarily for junior or senior level managerial accounting courses and accounting information systems courses with a managerial focus. They have also been used successfully in MBA and Masters of Accountancy courses. They can also be used in a focused introductory managerial course.

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   · Enter transactions into Dynamics.
   · Extract data from existing data files.
   · Export data from Dynamics and analyze it using Microsoft Excel.
   · Critically evaluate and interpret the information.

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Six projects are provided that can be assigned independently or omitted at the professor's preference:

1. Job Order Costing
2. Activity-Based Costing
3. Process Costing
4. Cost Behavior
5. Standard Costs and Variance Analysis
6. Performance measurement using ROI and Residual Income.

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Introduction - 3 hours
This portion of the project must be completed by all students and walks students through installing the software, introduces them to the basics of using the software and teaches them to create reports.

Job Order Costing - 2½ hours
Students record transactions to (1) order raw materials, (2) set up a bill of materials, (3) record manufacture of components and finished goods, and (4) compute and dispose of over/under applied overhead at the end of the period. Throughout the process, students investigate the effects of transactions on the bill of materials, inventory, accounts payable and the general ledger data.

Activity-Based Costing - 3½ hours
The two-staged process of ABC is illustrated. Students export data about resource cost from Dynamics to Excel, assign resource costs to activities and compute activity costs. ABC data is then entered into Dynamics and students must compare ABC cost to cost computed before ABC, evaluating the effect on decisions made by the company.

Process Costing - 2½ to 4 hours
In the short version of this project, students enter all transactions in a weighted average process costing system with two departments and five cost categories. Students must follow the flow of costs through both general ledger and detailed inventory accounts form the purchase of raw materials to the sale of finished goods. In a lengthened version, students perform all of the process costing computations and enter transactions for an additional month

Cost Behavior - 2½ hours
The regression method for analyzing cost behavior is illustrated. Students create a report to output 12 months' worth of cost and cost driver data from Dynamics. This information is exported to Microsoft Excel and combined with additional data to construct cost equations for key costs. Students use relevant statistics to evaluate each cost equation and compare alternative cost drivers.

Standard Costs and Variance Analysis - 2 hours
This project illustrates variance analysis for materials, labor and variable overhead for individual production jobs. The source of individual variances is emphasized through recording of the transactions that give rise to the variances. Price variances are illustrated using both units purchased and units manufactured. Students compute variances as described in most cost accounting texts, and then compare these variances with those provided in standard Dynamics reports.

Performance Measurement using ROI and Residual Income - 2½ hours
Students compute ROI and residual income, comparing different product segments and analyzing a new investment. The usefulness of each of these measures for different purposes, as well as issues related to the allocation of costs and assets for performance measurement are addressed.

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   · Instructions and assignments developed by the author to teach students how to use Dynamics and complete each project.
   · The same commercially available Microsoft Great Plains Dynamics software purchased by businesses. Version 6.0 is used.
   · All data files.
   · Instructor's Guide and Solutions (available to instructors only).

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