Well, today in managerial accounting class, Luis presented the class with an example of printing press, which works for two clients. And then showed numbers how the contribution margin and the net income for one client was positive and other negative, and when there was a proposal of this other client to have additional business, he asked the class would you do it?
Thanks to the fact that I had actually done my homework, I knew that they should accept the offer. As it turned out, I was the only one standing against the whole class who would accept it. The signal to Luis was clear - I was the only one who did his homework :-D
Enough bragging, Luis played some more with the numbers, removed the fixed costs and showed the contribution margin to the class. Again a vote, where I was the only one standing for this second client. Finally, when Luis revealed the calculations, and the criterion of unit contribution margin to make decisions, he also commended me for being the only one who did the homework.
A moment of happiness :-)
And then the lesson of the day - don't trust numbers blindly, they can deceive - and never trust your accountant. Check, ask, confirm and then believe.
And to add words of Luis himself 'Never trust your professor' ;-)
Rest of the day was spent for group work - considering that everyday next week is going to be a presentation or delivery date for some group work or other.
Bid for electives open tomorrow sounding the beacon of terms to come. CMC has started sending mails for job, graduate program and internship postings. Before I can apply, I need to fix my resume and prepare the cover letters. Things are piling up, and I will have to accelerate my momentum soon !!
Thanks to the fact that I had actually done my homework, I knew that they should accept the offer. As it turned out, I was the only one standing against the whole class who would accept it. The signal to Luis was clear - I was the only one who did his homework :-D
Enough bragging, Luis played some more with the numbers, removed the fixed costs and showed the contribution margin to the class. Again a vote, where I was the only one standing for this second client. Finally, when Luis revealed the calculations, and the criterion of unit contribution margin to make decisions, he also commended me for being the only one who did the homework.
A moment of happiness :-)
And then the lesson of the day - don't trust numbers blindly, they can deceive - and never trust your accountant. Check, ask, confirm and then believe.
And to add words of Luis himself 'Never trust your professor' ;-)
Rest of the day was spent for group work - considering that everyday next week is going to be a presentation or delivery date for some group work or other.
Bid for electives open tomorrow sounding the beacon of terms to come. CMC has started sending mails for job, graduate program and internship postings. Before I can apply, I need to fix my resume and prepare the cover letters. Things are piling up, and I will have to accelerate my momentum soon !!
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