Principles of Activities - Chapters 18,19,20,21 at PoA.
Sec 10K – Amazon -
B. . You are a new hire for a major company and completing your 8 week rotation related to accounting, financial reporting, budgeting, cost control, and profit maximization.
Write a brief report in memorandum format of your activities this week as a Word document and upload it to this week's Homework assignment folder. This memorandum should include a response to the prompt below and a report of your work for the week
Complete the report below and submit in the Assignment Folder.
Prompt:
What key profit factor do you learn from the analysis described in PoA chapters 17 18 19 and 20?
Investigate the High Low Method of the cost equation:
Total Cost = Variable Cost per unit x Quantity + Fixed Costs Total $
This is a use of extrapolation as well as the equation for the slope of a line: Y = Mx + b
The change in total cost divided by the change in total activity allows you to calculate the VC per Unit.
VC Variable Costs; FC Fixed Costs: TC Total Costs: The Cost Formula: TC – VC x Qty + Total FC
With the high low method you can ‘force’ or solve for the value of total fixed costs. Carefully review this formula presentation as well as the concept of break even analysis and target income.
Why are pricing strategies and cost management important?
Report of work:
1. Must include a summary of each chapter.
2. Also choose from one of these topics:
• What resources did you find most/least helpful this week?
• What topic(s) gave you trouble this week (if any)?
• What topic(s) do you feel you were able to grasp?
• How might you change your time management or study habits?
• Comment on the value of the activities you completed this week

Principles of Activities - Chapters 18,19,20,21 at PoA. Sec 10K –...