Please see the attached

Uj20666
timer Asked: Apr 25th, 2018

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Using Excel please answer the questions in the attached file.Using Excel please answer the questions in the attached file.Using Excel please answer the questions in the attached file.Using Excel please answer the questions in the attached file.Using Excel please answer the questions in the attached file.Using Excel please answer the questions in the attached file.Using Excel please answer the questions in the attached file.Using Excel please answer the questions in the attached file.

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COST ALLOCATION IN KINGSTON STATE UNIVERSITY1 Title IX is a comprehensive federal law that states, “No person in the United States shall, on the basis of sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any education program or activity receiving Federal financial assistance” (United States Code 1972, 20 U.S.C. § 1681). This case focuses on a single Title IX issue, gender equality in collegiate athletics, which specifically requires the effective accommodation of athletic interests and abilities of men and women necessary for providing equal athletic opportunities. One way to comply with this aspect of Title IX is for a university to demonstrate continuing progress in the expansion of programs for the underrepresented gender (i.e., women). Assume you are an accountant at the athletic department of Kingston State University (KSU), which competes in Division 1-A sports. Your task is to help the athletic director document KSU’s compliance with Title IX using the information that follows. Table 1 provides the actual costs incurred by the athletic department for the most recent fiscal year. Table 2 presents summary information by sport. KSU considers only football and men’s basketball as revenue sports, in which revenues generated exceed the costs of those teams.2 All other sports teams are deemed nonrevenue teams (i.e., earns revenue via ticket sales and other means, but their revenues do not cover the team’s costs). Table 3 shows the Internal Audit’s calculation of the amount spent per student athlete during the year. Table 4 describes the various cost categories. The athletic director wants to find a way to be in compliance with Title IX without resorting to actions he considered drastic – reducing the number of existing male student-athletes and incurring additional costs to start new women’s programs; although to be fair, he felt he needed to look at all options. He was aware that the allocation of indirect costs, because indirect costs are not directly traceable to any particular team, contains a degree of arbitrariness and the reallocation of indirect costs might be beneficial to the university in terms of compliance with Title IX. The athletic director has directed you to prepare a memo that includes your cost analysis as follows: Part 1: 1. Critique the current system of allocating indirect costs as prepared by the internal audit department by discussing the pros and cons of using ‘number of athletes’ as a basis to allocate indirect costs. 2. Compute the total cost per male and female student athlete if football is eliminated. Critique this option. 3. Compute the total cost per male and female student athlete if a new women’s field hockey team is added. Assume that KSU would incur approximately $225,000 in direct costs to start a women’s field hockey team with 34 players, and no additional indirect costs. Critique this option. 4. Compute the total cost per male and female student athlete if ‘number of athletic events’ is used as a basis to allocate indirect costs. Critique this option. 5. Compute the total cost per male and female student athlete if ‘number of athletic teams’ is used as a basis to allocate indirect costs. Critique this option. Part 2: 6. Compute the total cost per male and female student athlete using an activity-based costing system. 7. Which option would you recommend and why? Consider who the important stakeholders are in this situation and how each option will likely impact each of these important stakeholders. 1 This exercise was adapted from an instructional case written by Professors John T. Reisch and Larry P. Seese for Issues in Accounting Education, February 2005, Vol. 20 Issue 1, p81-97. 2 Like many universities, KSU does not allocate the cost of physical facilities, such as the football stadium, to the athletic department. Accordingly, depreciation expense is not included in Table 1.
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