BUDGETINGDifferential analysis involves knowing which costs are relevant, i.e. future costs that vary among alternatives. It is important to know what information to use andnot just how to execute the analysis..Herrestad Company receives an offer to make a new product, called C, for a new customer. The customer wants to buy 1,000 units. Product C has the same cost structureas product B with three exceptions. The new customer is only willing to pay $150 per unit, direct materials costs will decrease by $12 per unit and Herrestad does nothave to incur any variable selling and administrative expenses. Make a list of the expenses and amounts that are relevant for this decision. How much with the sale of this product contribute to the profitability ofHerrestad? What if the company only pays $140 per unit? How does this change the contribution towards profitability? If you were the manager, would you accept this order? What considerations, other than financial would enter into your decision?This is a Signature Assignment Expectation for ACC202 Module 5 SLP..There are 2 specific learning outcomes:1. apply business theories, models, and concepts to guide analysis of problems and situations2. utilize data driven analysis in making business decisions.In this SLP assignment for Module 5 our emphasis will be on understanding the concept of relevant costs. You will be summarizing all of what you learned the in theCases, SLPs and TDs.The grading rubric below has been developed to measure student success in meeting the ACC202 Module 5 SLP expectations related to applying your knowledge of relevantcosts in the budget process..Assignment Expectation Weak Marginal Adequate StrongOrganization Demonstrates the ability to analyze content logically, concisely, and in an appropriate manner to understanding of relevant costs. There is nological sequence of information. Wording is rambling and unfocused. Paper does not follow a logical sequence. Paper follows a logical sequence. There aresome minor problems with sub-classification and/or results are not clear. Paper follows a logical sequence with a correct computation and results. Each costrelates to others in a carefully organized framework.Demonstrates the ability to support a central point or viewpoint throughout the paper..Insufficient elaboration and/or support (e.g., computation, eachactivity) in the paper. Limited elaboration and/or support in the paper. Support with some specific details and elaboration in the paper. Support throughboth specific details and elaboration apparent in the paper.Content Demonstrates familiarity with the concept of relevant costs. The purpose is not identified, is unclear, or inappropriate in the paper. Purpose isoccasionally unclear in the paper. Clear purpose, but not consistently sustained throughout the paper. Clear purpose sustained throughout the paper.Demonstrates the ability to gather and sort relevant costs in the budget process. Does not have a grasp of information and appropriate data..Topic ispoorly created. Supporting explanations are absent or vague. Trite ideas and/or unclear wording reflect a lack of understanding of topic. Seems uncomfortablewith information and data. Topic is evident but with little or no elaboration. Seems comfortable with the accounting information and data. Topic is evident with somesupporting details. Demonstrates full knowledge of the topic with explanation and elaboration. The topic is well developed, effectively supported, and appropriatefor the assignment. Critical thinking is clearly and creatively expressed. Data choices are well thought out.Delivery Demonstrates the ability to use appropriate word choice and grammar in the paper. There are many sentences with grammatical errors..Somesentences are incomplete/halting, and/or vocabulary is somewhat limited or inappropriate. There are a few sentences that are complete and grammatical. Wordchoice is not always appropriate for presentation. Sentences are generally complete and grammatical, and they flow together easily. With a few exceptions, wordsare chosen for their precise meaning. All sentences are complete and grammatical, and they flow together easily. Words are chosen for their precise meaning. Wordchoice illustrates grasp of content and enhances explanation.Demonstrates the ability to make an effective explanation outline that is free from bias. Words chosen for an explanation are inappropriate and exhibitsbias. Some readers may be confused. Words chosen for the paper are free from bias with one or two minor exceptions. Words have no apparent bias. There is someinappropriate explanation. Words and explanation are completely free from bias.Post your assignment.SLP Assignment Expectations Demonstrate familiarity with the concept of relevant costs. Write 2-4 pages, showing computations and discussing the results. List supporting references and cite sources. Use appropriate writing style (organization, grammar, & spelling see Writing Guidelines)..
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