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ACC 102 · Unit 6 of 6

Managerial Decisions

Managerial Accounting and Control

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Learning objectives

After completing this unit, you will be able to:

  • to business decisions
  • Apply the frameworks in "Managerial Decisions" to a real management decision
  • Make progress on your Managerial Accounting and Control case analysis applied project

Why this matters

Managerial Decisions is essential to Managerial Accounting and Control. Lessons build fluency with anchor-company examples, worked problems, and assessments on the unit page.

Lesson

Unit overview

Complete all 5 lessons in order. Each lesson follows the program authoring standard: conceptual prose, worked examples, practice problems, and managerial judgment prompts. Finish unit exercises and the knowledge check before marking the unit complete.

Connection to applied work

This unit feeds directly into Managerial Accounting and Control case analysis. As you read, capture notes, examples, and data you can reuse in that deliverable. Strong students finish each unit with a draft section of their project, not just highlights.

Practice

  1. Write a one-page summary of this unit in your own words without looking at the lesson.
  2. Find a real company example (public filing, news article, or personal experience) that illustrates the main concept.
  3. Draft one paragraph recommending an action a manager should take based on this unit.
  4. Add at least three terms from this unit to your course glossary.

Knowledge check

Answer these without notes before marking the unit complete:

  1. What is the central idea of "Managerial Decisions"?
  2. What mistake do beginners most often make when applying this material?
  3. How does this unit help you complete Managerial Accounting and Control case analysis?
  4. What is one decision you face this month where this unit applies?

Key takeaways

  • to business decisions
  • Business concepts only matter when they change a decision.
  • Your ACC 102 assessment (Cost concepts, budgeting, variance analysis, and decision-relevant costing for managers.) rewards applied understanding, not memorization.

Unit assessment

Complete each section below. Score 80%+ on the quiz to finish this unit's assessment.

40% applied project35% knowledge checks25% reflections

Exercises

Apply what you learned in this unit with structured practice.

ExerciseApplied practice: Managerial Decisions45 min
Complete a focused practice exercise on **Managerial Decisions**. 1. Choose a real company, product, or situation you know. 2. Apply one core framework from this unit to analyze it. 3. Write your analysis in 300–500 words with a clear recommendation. 4. Cite at least one credible source.

Deliverable

300–500 word analysis document saved to your portfolio under ACC 102.

Rubric

  • • Framework applied correctly (not just named)
  • • Specific evidence from a real example
  • • Clear recommendation with tradeoffs acknowledged
  • • Professional writing with source citation
ExerciseDrill: Managerial Decisions30 min
Work through the practice problems in the unit lesson without looking at notes. Then check your work against the lesson and write a short reflection: - What you got right - One mistake you caught - One concept to review before the next unit

Deliverable

Problem solutions + 150-word reflection in your ACC 102 workbook.

Rubric

  • • Attempted all practice items before checking answers
  • • Honest reflection on errors
  • • Identifies a specific review action

Model / spreadsheet

Build or extend a spreadsheet model tied to this unit.

ModelSpreadsheet model: Managerial Decisions60 min
Build a spreadsheet model demonstrating **Managerial Decisions**. **Requirements:** - Separate Input, Calculation, and Output sections - Label all units ($, %, units) - Include at least one sensitivity or scenario comparison - Add a balance check or reasonableness test Use Google Sheets or Excel. Link the model to your Managerial Accounting and Control case analysis project where applicable.

Deliverable

Spreadsheet file with Inputs / Model / Outputs tabs · One-paragraph summary of key insight from the model · Screenshot or export saved to portfolio

Rubric

  • • Assumptions stated explicitly
  • • Logic is auditable (formulas or steps visible)
  • • Output answers a specific business question
  • • Sensitivity or scenario considered

Knowledge quiz

Check your understanding before marking the unit complete.

1. Columbus debates insourcing tray lids at 310,000 bowls/month versus supplier quote $0.09 each. Relevant costs include incremental lease, technicians, materials, and floor-space opportunity cost. Sunk tooling on the old lid mold is:

2. A club store offers a one-time 80,000-case granola order at $0.22 below the $4.99 list price. Variable cost remains $2.18. Idle Omaha oven hours exist. Should acceptance start with full absorption unit cost or incremental CM?

3. Omaha has 210,000 machine hours available. Granola uses 0.4 hr/case with $2.81 CM; protein cluster uses 0.55 hr/case with $3.40 CM. Which SKU ranks higher on CM per constrained hour?

4. Heritage Sauce full manufacturing cost is cited as $1.42 variable plus $0.38 allocated OH. Kroger shelf price is $3.49. Target costing starts with shelf price and backs into allowable cost. Cost-plus pricing starts with:

5. Paying sales on revenue without CM contribution can push low-margin sauce promotions. Paying plants on minimizing OH rate can encourage inventory build. What design principle reduces these effects?

6. A special order at $4.77 per case (list $4.99) offers 80,000 cases. Variable cost $2.18. No overtime or lost sales on other SKUs. Approximate incremental contribution dollars?

7. Northwind can buy lids for $27,900 monthly (310,000 × $0.09) or lease equipment with $18,000 monthly incremental cost plus $0.04 materials per lid. At 310,000 units, make cost is:

8. Fresno is the binding constraint on a national promo requiring extra sauce changeovers while Omaha has idle oven hours for granola. A special-order decision must:

Next unit: Markets and Prices →