managerial accounting

976 Pages·2014·19.6 MB·English

8/7/2018 Accounting for Managers
Accounting for Managers
Accounting for Managers
Lumen Learning
Accounting for Managers Copyright © 2018 by Lumen Learning.
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CONTENTS
Course Contents
About This Course
Module 1: Whole Numbers, Fractions, Decimals, Percents and Problem Solving
Why It Matters: Whole Numbers, Fractions, Decimals, Percents, and Problem Solving
Introduction to Whole Number Calculations
Place Value in Whole Numbers
Rounding Whole Numbers
Adding, Subtracting, Multiplying, and Dividing Whole Numbers
Introduction to Fraction Calculations
Convert Between Types of Fractions
Adding and Subtracting Fractions
Multiplying and Dividing Fractions
Introduction to Decimal Calculations
Place Value in Decimals
Adding and Subtracting Decimals
Multiplying and Dividing Decimals
Convert Between Decimals and Fractions
Introduction to Percent Calculations
Solving Problems Using Ratios
Writing Fractions and Decimals as Percents
Solving Problems Using Percents
Percent Increase and Decrease
Putting It Together: Whole Numbers, Fractions, Decimals, Percents, and Problem Solving
Module 2: Calculations and Solving Equations
Why It Matters: Calculations and Solving Equations
Introduction to Solving Equations
Variables
Solving Single-Step Equations
Solving Multi-Step Equations
Introduction to Translating Word Problems into Equations
Translating Words Into Algebra
Algebraic Problem Solving Strategies
Introduction to Solving Complex Equations
Mark-Up Problems
Discount Problems
Simple and Compound Interest
Solving Formulas for a Specific Variable
Introduction to Reading and Using Graphs
Graphing Points on a Coordinate Plane
Identifying Trends of a Graph
Rate of Change
Analyzing Graphical Data
Putting It Together: Calculations and Solving Equations
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COURSE CONTENTS
ABOUT THIS COURSE
Accounting for Managers was developed to provide content that focuses on the application of accounting
principles within the framework of making business decisions. 
About Lumen
Lumen Learning’s mission is to make great learning opportunities available to all students, regardless of
socioeconomic background.
We do this by using open educational resources (OER) to create well-designed and low-cost course
materials that replace expensive textbooks. Because learning is about more than affordability and
access, we also apply learning science insights and efficacy research to develop learning activities that
are engineered to improve subject mastery, course completion and retention.
If you’d like to connect with us to learn more about adopting this course, please Contact Us.
You can also make an appointment for OER Office Hours to connect virtually with a live Lumen expert
about any question you may have.
Licensing & Attributions
CC licensed content, Original
About This Course. Provided by: Lumen Learning. License: CC BY: Attribution
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MODULE 1: WHOLE NUMBERS,
FRACTIONS, DECIMALS, PERCENTS
AND PROBLEM SOLVING
WHY IT MATTERS: WHOLE NUMBERS,
FRACTIONS, DECIMALS, PERCENTS, AND
PROBLEM SOLVING
Mathematics is often referred to solely as a subject of study in school — while in reality, you use math all
the time to make daily calculations and decisions. There are times when you need to work with numbers
in a variety of ways to determine how you want to proceed with a purchase or a project.
Your friend Samuel is graduating next week and you
want to throw him a party to celebrate. He’ll be moving
away next month to start a management internship
with a national retailer. Everyone is proud of him and
you know dozens of people who will want to wish him
farewell and good luck. It looks like an evening event
will work for most people, and your favorite party
theme is a dessert bar: cupcakes, fizzy drinks, ice
cream sundaes, and cookies.
At the grocery store you see two different brands of
cake mix to make the cupcakes: Sweet Sprinkles and
Chocolover. They are both on sale for different prices.
2 5.50 1 3.75 3
Sweet Sprinkles cake mix boxes are for $ , or for $ . Chocolover cake mix boxes are for $
6.99 1 2.55
, or for $ .
First, you’ll want to figure out the most economical way to purchase the boxes of cake mix to have
enough for everyone. Then, once you’re home, you’ll have to triple your frosting recipe to make enough
3
for the party — and there are fraction amounts (4 cup) in the original recipe! You also know you’ll need
to estimate the number of drinks that will be consumed, which will likely involve rounding. Some of
Samuel’s other friends offered to chip in to pay for all the party supplies, so you’ll need to calculate how
to split the cost evenly between the group.
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This party is turning out to involve A LOT of math! Let’s review some core math concepts, so that we can
better work with complex accounting equations in later modules.
Licensing & Attributions
CC licensed content, Original
Why It Matters: Whole Numbers, Fractions, Decimals, Percents and Problem Solving. Provided by: Lumen Learning. License: CC BY: Attribution
CC licensed content, Shared previously
Chocolate Cupcakes. Authored by: robin2233. Located at: https://pixabay.com/en/cupcakes-chocolate-dessert-baked-2943594/. License: CC0: No Rights Reserved
INTRODUCTION TO WHOLE NUMBER
CALCULATIONS
If it has been a while since you’ve studied math, it can be helpful to review fundamental topics. The most
basic numbers used in math are those we use to count objects: 1,2,3,4,5,… and so on. These are
called the counting numbers, or natural numbers. Whole numbers are all non-negative numbers that
have no fractional or decimal part: 0,1,2,3,4,5,6,… and so on. Working with whole numbers lays the
foundation for working with all other types of numbers.  Using mathematical rules to manipulate whole
numbers allows us to better analyze more complex numbers and data collected from the world around
us.
Licensing & Attributions
CC licensed content, Original
Introduction to Whole Number Calculations. Provided by: Lumen Learning. License: CC BY: Attribution
CC licensed content, Shared previously
Pool balls in a row. Authored by: sacks08. Located at: https://www.�ickr.com/photos/29071316@N06/3556143493. License: CC BY: Attribution
Prealgebra. Provided by: OpenStax. License: CC BY: Attribution. License Terms: Download for free at http://cnx.org/contents/[email protected]
PLACE VALUE IN WHOLE NUMBERS
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Learning Objectives
Use place value to define all digits of a whole number
Our number system is called a place value system because the value of a digit depends on its position,
537 735
or place, in a number. The number has a different value than the number . Even though they use
3 7 5
the same digits, their value is different because of the different placement of the and the and the .
Money gives us a familiar model of place value. Suppose a wallet contains three $100 bills, seven $10
bills, and four $1 bills. The amounts are summarized in the image below. How much money is in the
wallet?

Find the total value of each kind of bill, and then add to find the total. The wallet contains $374.

Base-10 blocks provide another way to model place value, as shown in the image below. The blocks can
10
be used to represent hundreds, tens, and ones. Notice that the tens rod is made up of ones, and the
10 100
hundreds square is made of tens, or ones.

138
The image below shows the number modeled with base-10 blocks.
138
We use place value notation to show the value of the number .
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Digit Place value Number Value Total value
1 1 100 100
hundreds
3 3 10 30
tens
8 ones 8 1 + 8
Sum =138
Example
Use place value notation to find the value of the number modeled by the base-10 blocks shown.
Answer
2 200
There are hundreds squares, which is .
1 10
There is tens rod, which is .
5 5
There are ones blocks, which is .
Digit Place value Number Value Total value
2 2 100 200
hundreds
1 1 10 10
tens
5 5 1 + 5
ones
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Digit Place value Number Value Total value
215
10 215
The base- blocks model the number .
Try It
Visit this page in your course online to practice before taking the quiz.
Watch this video online: https://youtu.be/KcXIxM6h9hk
10
By looking at money and base- blocks, we saw that each place in a number has a different value. A
place value chart is a useful way to summarize this information. The place values are separated into
groups of three, called periods. The periods are ones, thousands, millions, billions, trillions, and so on. In
a written number, commas separate the periods.
10
Just as with the base- blocks, where the value of the tens rod is ten times the value of the ones block
and the value of the hundreds square is ten times the tens rod, the value of each place in the place-value
chart is ten times the value of the place to the right of it.
5,278,194
The chart below shows how the number is written in a place value chart.
5 5,000,000
The digit is in the millions place. Its value is .
2 200,000
The digit is in the hundred thousands place. Its value is .
7 70,000
The digit is in the ten thousands place. Its value is .
8 8,000
The digit is in the thousands place. Its value is .
1 100
The digit is in the hundreds place. Its value is .
9 90
The digit is in the tens place. Its value is .
4 4
The digit is in the ones place. Its value is .
Example
63,407,218
In the number ; find the place value of each of the following digits:
7
1.
0
2.
1
3.
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6
4.
3
5.
Answer
Write the number in a place value chart, starting at the right.
7
The is in the thousands place.
0
The is in the ten thousands place.
1
The is in the tens place.
6
The is in the ten millions place.
3
The is in the millions place.
Try It
Visit this page in your course online to practice before taking the quiz.
The video below shows more examples of how to determine the place value of a digit in a number.
Watch this video online: https://youtu.be/0-4rLGvVEOI
Licensing & Attributions
CC licensed content, Shared previously
Examples: Determining Place Value. Authored by: James Sousa (Mathispower4u.com). Located at: https://youtu.be/0-4rLGvVEOI. License: CC BY: Attribution
Prealgebra. Provided by: OpenStax. License: CC BY: Attribution. License Terms: Download for free at http://cnx.org/contents/[email protected]
Determine a Whole Number Given Base 10 Blocks (Hundreds) . Authored by: James Sousa (Mathispower4u.com). Located at: https://youtu.be/KcXIxM6h9hk. License: CC BY: Attribution
ROUNDING WHOLE NUMBERS
Learning Objectives
Round whole numbers to a determined place value
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1,026
The electronics retailer, Best Buy, had brick and
2016
mortar stores open in October of . Depending on
how this information will be used, it might be enough to
say that the company has approximately one thousand
stores. The word approximately means that one thousand is not the
exact count, but is close to the exact value.
2017
In , the social network app, Facebook, reported its
40.7
annual revenue as billion US dollars. This could
$40,742,985,316
mean they actually brought in or
$40,654,872,131
. Sometimes the detail is needed, but
sometimes just an approximate value is good enough.
1.07
The real estate app, Zillow, recorded a profit of
billion US dollars; this is an approximate value. If you Best Buy Storefront
2017
want to compare Facebook’s revenue with Zillow’s
2017
revenue, the precise dollars or even millions of dollars are unnecessary.
The process of approximating a number is called rounding. Numbers are rounded to a specific place
value depending on how much accuracy is needed. Identifying the number of stores owned by Best Buy
1
as approximately thousand means we rounded to the thousands place. Reporting the annual revenue
40.7
of Facebook as billion US dollars means we rounded to the hundred millions place. Often the place
value to which we round depends on how we will need to use the number.
Using a number line can help us visualize and understand the rounding process. Look at the
number line below.
76 76 70 7 80 8
Suppose we want to round the number to the nearest ten. Is closer to ( tens) or (
tens) on the number line?
76 80 70 76 80
We can see that is closer to than to . So rounded to the nearest ten is .

72 72
Now consider the number . Find on the number line.
72 70 72 70
We can see that is closer to , so rounded to the nearest ten is .

75
How do we round to the nearest ten?
75
Find on the number line.
75 70 80
The number is exactly midway between and .
So that everyone rounds the same way in cases like this, mathematicians have agreed to round up
75 80
to the higher number. So, rounded to the nearest ten is .
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