WEEK SEVEN: The assignments and exams for Chapters Twenty-Four, Twenty-Five and Twenty-Six should be completed this week.
As you work through Chapter Twenty-Four, please be aware that we are covering only the first learning objective in the chapter, so we are only covering the material on pages 1311 through 1321 in the text (Please note that pages numbers may vary based on different editions of the text). The primary focus for Chapter Twenty-Four is on the application of Activity-Based Costing. ABC is a more accurate way to allocate certain overhead costs based on an activity, rather than a simpler allocation rate. Chapter Twenty-Five is a quick chapter that covers some common approaches to making short-term business decisions. I strongly encourage you to reference the Summary Problems on pages 1407 through 1410 of your text as you work on the homework/test problems for Chapter Twenty-Five (Please note that page numbers may vary based on different editions of the text).
Chapter Twenty-Six covers Capital Investment Decisions and looks at calculations that can be made in analyzing the purchase of long-term capital assets. The main focus of the chapter will be looking at the four popular methods of analysis: Payback; Accounting rate of return (ARR); Net present value (NPV); and Internal rate of return (IRR).