MBA FPX 5010 Assessment 1 Training Manual-Accounting Tools and Practices
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Assessment Overview:
MBA FPX 5010 Assessment 1: builds a short training primer for new hires on account tools and practices. It explains how common costs( advertising, web development, store- opening) are treated, the part of notes to fiscal statements, differences between cash vs. addendum account, and when to subsidize vs. expenditure. The thing is to educate correct recording, bracket, and exposure so new workers produce harmonious, inspection-ready fiscal information.
How to Pass MBA FPX 5010 Assessment 1 Training Manual-Accounting Tools and Practices
To ensure your training manual meets the high standards of MBA-level accounting, follow these 10 points:
- Correct the “Scan” Terminology: This document contains several OCR errors that will look unprofessional to a professor. Change “subsidized” or “staking” to “capitalized,” “addendum” to “accrual,” and “clones” to “copies.”
- Clarify the “Capitalize vs. Expense” Rule: This is the heart of the assessment. Clearly state: If a cost provides benefit only now, it is an Expense. If it provides benefit for years to come, it is an Asset (Capitalized).
- Explain Urban Outfitters’ Specifics: Note that for Urban Outfitters, advertising is usually an expense, but “direct-to-consumer” (like catalogs) is capitalized because those catalogs drive sales for months after they are mailed.
- Focus on the Accrual Basis: Emphasize that for a leader like Urban Outfitters, Accrual Accounting is mandatory. Explain that it “matches” revenue with expenses in the period they occur, regardless of when cash moves.
- Address Store Opening Costs: Be very firm—store opening costs (training, travel) are always expensed as incurred. They do not count as assets.
- Highlight the Website Phase: Explain the difference between the “Planning Phase” (always expensed) and the “Development Phase” (can be capitalized). This shows you understand the nuances of software accounting.
- Use the Data Table: Don’t just list the table; interpret it. For example, point out that Advertising Expenses more than quadrupled from 2015 to 2016, showing a major shift in marketing strategy.
- Define the Role of “Notes”: Explain that “Notes to Financial Statements” are where the “fine print” lives. They explain how the company arrived at its numbers, which is essential for auditors.
- Include the “Quick Quiz”: As suggested in the Step-by-Step, add two questions at the end. Example: “If we buy a new building, is it capitalized or expensed?” (Answer: Capitalized).
- Check Your References: Ensure your links and citations are correctly formatted in APA 7th edition. The links in your prompt seem to point to unrelated sites (like a Walmart Forbes article)—make sure your final links match the Urban Outfitters context.
Sample Assessment:
Training Guide – New Hires
Advertising
Advertising charges are subject to two exceptions for expensing direct- to- consumer advertising and reimbursed advertising costs. Direct- to- consumer advertising is originally expensed and latterly subsidized when the company’s brand book, business folder, or roster is released to guests, either through physical clones or digital platforms similar as websites and apps.
Repaid advertising costs, on the other hand, are shown as reimbursed charges and recorded under current means in the consolidated balance distance, rather than on the fiscal consolidated statement( Urban Outfitters Inc., 2016). As illustrated in the 10- K Notes to Consolidated Financial Statements, advertising charges for 2015, 2016, and 2017 are as follows 2015$ 103,582 2016$ 414,104 2017$ 527,159
MBA FPX 5010 Assessment 1 Training Manual-Accounting Tools and Practices
Also, the company also incurred web creative advertising costs, which are distributed under selling, general, and executive charges( Urban Outfitters Inc., 2016). The web advertising charges are as follows 2015$ 427,183 2016$ 52,063 2017$ 431,237 Urban Outfitters is honored as a leader in life specialty retail, operating under colorful brand names, including Urban Outfitters, Anthropologie, Free People, Terrain, and Bhldn( Urban Outfitters Inc., 2016).
Advertising costs are generally expensed as they do, except for direct- to- consumer advertising, which is capitalized and amortized over its estimated unborn benefit period. These advertising charges primarily relate to the retail member, covering web marketing, roster printing, paper, postage, and other costs involved in the product of photographic images for registers, websites, and mobile operations( Urban Outfitters Inc., 2016).
Costs for Store Openings
All costs associated with store openings are expensed as incurred. These costs include training, hires, reclamation, operations, and trip charges. All these charges are distributed under selling, general, and executive charges in the Consolidated Statements of Income( Urban Outfitters Inc., 2016).
Development Costs – Website
Applicable costs incurred during the structure development and operation phases are subsidized. Still, no internal- use software development costs were subsidized for financial times 2015, 2016, and 2017, as utmost of the charges were incurred during the planning and functional stages. Costs associated with the operation and structure development phase were n’t material during these financial times( Urban Outfitters Inc., 2016).
Table: Advertising and Web Creative Expenses (2015-2017)
| Year | Advertising Expenses ($) | Web Creative Advertising Expenses ($) |
| 2015 | 103,582 | 427,183 |
| 2016 | 414,104 | 52,063 |
| 2017 | 527,159 | 431,237 |
Notes to Financial Statements
Notes to fiscal statements serve a vital part in clarifying the details presented on the fiscal statements. These notes generally explain the account styles used and give important data that surfaced during or after the unrestricted account period. They’re designed to offer as important applicable information as necessary, icing translucency and full exposure as seen fit by the company and adjudicators( Marshall, 2017).
Accounting Method Effect on Financial Statements
The two primary account styles employed by companies are the cash base and the addendum base. The main difference between these approaches lies in the timing of recording purchases and deals. Under the cash base, charges and earnings are recorded only when cash deals do. In discrepancy, addendum account records profit when earned and charges when billed, indeed if payment has not yet been made( McCool, 2018). While both styles ultimately regard all deals, the choice between them can significantly affect the appearance of fiscal statements. A shift from addendum to cash base account would alter how profit and loss numbers appear.
Capitalizing or Expensing Costs
The distinction between staking and expensing costs depends on how they’re treated in the fiscal statements( Business knowledge Institute, 2019). When a cost is expensed, it’s recorded on the income statement and subtracted from profit, affecting profit.However, it’s considered a capital expenditure and distributed as an asset on the balance distance( McCool, 2018), If a cost is subsidized.
MBA FPX 5010 Assessment 1 Training Manual-Accounting Tools and Practices
McCool, R. (2018). Cash vs. accrual accounting: Impact on financial reporting. Urban Outfitters Inc. (2016). Notes to consolidated financial statements.
References (APA 7 Format)
- Business Literacy Institute. (2019). Financial statement analysis: The link between capitalizing and expensing.https://www.betterevaluation.org/en/evaluation-options/scatterplot
- Marshall, D. (2017). Understanding financial statements: Notes and disclosures.https://www.forbes.com/sites/blakemorgan/2019/08/21/amazon-versus-walmart-goliath-versus-goliath/#24562b524674
- McCool, R. (2018). Cash vs. accrual accounting: Impact on financial reporting.
- Urban Outfitters, Inc. (2016). Notes to consolidated financial statements.https://stattrek.com/statistics/charts/histogram.aspx
Rubric Breakdown
| Criteria | Proficient (Pass) | Distinguished (High Pass) |
| Accounting Policy Application | Accurately describes the treatment of advertising, store openings, and website development costs. | Evaluates the strategic impact of these policies on net income and asset valuation over multiple years. |
| Financial Method Comparison | Explains the fundamental differences between Cash and Accrual basis accounting. | Analyzes how shifting between accounting methods affects stakeholders’ perception of company health. |
| Capitalization Logic | Correctly identifies when a cost should be capitalized as an asset vs. expensed on the income statement. | Provides a complex decision-making framework for determining materiality and future economic benefit. |
| Disclosure Clarity | Explains the necessity and function of Notes to Financial Statements for transparency. | Critiques the level of detail required in disclosures to meet GAAP/IFRS standards for specific industries. |
| Manual Organization | Training manual is logically structured and clear for a new hire audience. | Manual is exceptionally professional, using precise terminology (correcting scan errors) and intuitive formatting. |
Step-by-Step Guide
- State compass — identify the followership( new hires) and the motifs( advertising, web/ dev, store openings, notes, subsidize vs. expenditure).
- epitomize each policy( 1 judgment each) — advertising, web creative, store- opening costs, development costs for websites.
- The figures include the 2015 – 2017 table for advertising and web creative charges.
- Give a 3- question roster —( a) Is there unborn benefit?( b) Is cost measurable & material?( c) Do capitalization rules apply? If yes → subsidize; if no → expenditure.
- Notes & exposures( 1 line) — say what to include in Notes to fiscal Statements( policy, estimates, material particulars).
- Controls & subscribe- off( 1 line) — list needed blessings and attestation( director/ regulator).
- Quick quiz( 2 Qs) — add 2 multiple- choice questions for trainees to test understanding.
Frequently Asked Questions
Q When do we subsidize advertising?
Only when it’s direct- to- consumer and the accoutrements are released( roster, brand book, website) and anticipated to give unborn benefit — also subsidize and amortize.
Q Are web development costs ever subsidized?
A yea — costs in the operation or structure development phases that meet internal- use software criteria; planning- stage costs are expensed.
Q How are store opening costs treated?
Expensed as incurred( training, reclamation, start- up operations) and recorded in SG&A.
Q Cash vs. addendum — which to use?
Use addendum for GAAP/ IFRS- biddable fiscal reporting; cash base is simpler but can distort performance timing.
Q What belongs in Notes to fiscal Statements?
Account programs, capitalization thresholds, estimates, judgments, and materialpost-closing events.
Q Quick roster for subsidize vs. expenditure?
A( 1) Is there unborn benefit?( 2) Is cost measurable?( 3) Does it meet capitalization rules?( 4) Is it material?( 5) Is attestation/ blessing available?
Integrity Note
Note: Only use this assessment example for learning and structure purpose. Do not submit as your own work.
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