Sports managerial accounting

Question 1

Athletic director deals with sports activities offered in high schools, colleges, and even universities. He is in charge of leading the types of sports offered in any certain institution. As a director of Div.University, I have certain powers and duties, which I will utilize when planning my football team. Given the duty to ensure that, the students get efficient training on the required skills, I will hence ensure that I follow the activities of those coaches who are training the students. The coaches have to be experienced to ensure that a strong football team is in existence. I will also ensure that the students use effective sports facilities by providing games equipment if there is need of replacement. This will be through recommending for the improvement of game facilities. I will also ensure full discipline exists among the students by ensuring there is good conduct. This will make certain there is easy running of the football team and the activities involved.

Question 2

   Air Jordan Company deals with production of shoes, which are used in sports activities. As the financial manager of NIKE, I would advise on the use of the process cost system. This system determines the cost of similar products such as the production of shoes and most of these products are alike. This system is easy to use especially when dealing with similar products unlike the job order cost system. The cycles in the process cost system are simplified and easy to understand such that the management can easily determines company’s trend. If the company is declining its production level, effective action takes place. In the other system, the cost cannot be determined until the order is complete hence it will be too late to take appropriate action. The process cost system generally ensures there is uniformity by dealing with homogenous products. This will ensure easy flow of production activities in the company. The advantages related with this system outweigh those of a job order cost system.

Question 3

   An activity-based costing system is a system for internal decision-making and for managing activities of certain organizations such as that of a Major League Baseball Team. This system helps to determine the overhead costs, which refers to the expenses used during operations of any organization. The first step is to establish a team that related to the baseball team and it should comprise of expertise of different fields such as technology. After a team formation, information on the materials used by the team is gathered. This will help in the next main step to establish the elements of each operation that cost money. There is identification of fixed costs and this will give the overhead costs of the League Team. After costs identification, the company studies the data to determine what steps to take in order to increase their profit levels. The last step comes after the company has fully analyzed the data. The company decides on what operations are of low costs and on what steps to take to increase profits.

Question 4

   I would first establish the main issue, which is whether to get rid of the campus swimming pool. After identifying the issue, one analyzes the issue and the people it affects. Existence of a swimming pool in campus is the main issue and it affects the campus students. Most of the students spend their free time in the pool instead of engaging in other activities such as group discussions or personal studies. The next process is finding solutions to the problem. Apart from swimming, the institution can establish other activities, which are more productive. They may include, introducing volunteer groups of helping the needy, encouraging community services or even building halls for other recreational activities. The best solution comes from the offered solutions. Taking part in community service helps in the growth of the students hence, the institution should encourage the students to take part in community-based activities. These activities can involve collecting of litter and helping in other development projects. My decision is that the campus should get rid of the swimming pool for the betterment of the student’s lives.

Question 5

When this happens, those people supporting the teams are the most affected and this occurs mostly when the marketing system operates at a loss. They tend to offer the various teams low payment and this directly or indirectly increases the rate of paying tickets by the team supporter during sports events. This is because the team itself still aims at earning profits and hence will extend the decision of the marketing system to the supporters by increasing the ticket prices. This will generally lead to the decline in the sports market therefore the teams should not determine the ticket prices depending on what the market will pay.

Question 6

Capital budget is the money that will be set aside for constructing the stadium. The first issue will be to determine whether building of the stadium will be profitable to the team. The benefits of building the stadium should be enough to pay for the cost of construction or any losses incurred. Investors involved in the construction should also fairly benefit from it. The new stadium has to be effective and all the people involved in the team should be involved in it. Generally, the cash outflow coming from the construction should be higher than the inflow. If not the company will just incur losses in the future and should hence not construct the stadium.

.Question 7

   The local little league baseball acts as a non-profit institution, played by the youths in the local area in the US. These non-profit organizations rely on donations and fundraising events since they lack commercial owners. Organizations such as the local little league are in charge of helping the youth in the society. Giving financial aid to these groups has its pros and is simply equivalent to the society as a whole. This is because the society aims at focusing on society needs. The youths are empowered and their talents improved. The disadvantage of giving financial aid to this organization n is that there are no interests involved. This is because the league does not aim at making profit but at helping the youths. Those who give aid do not actually get benefits; hence, they act as donators and not investors.

Question 8

   Financial analyses helps in understanding the operating progress of a firm, the profits it makes and the risks involved by use of certain techniques. New York Mets is a baseball team professional in nature. The first step would be to identify the objective of conducting the analysis and then collect data on the financial position at New York Mets. The collected data is then processed and there is presentation of the financial trend in graphical terms. There is interpretation of the processed data results of the processed data on whether the company is declining in its progress or if it is successfully operating. The data helps to draw certain recommendations, offered to the company on ways to improve its profits.