It is so important in the first day of the first accounting course to convey excitement about the subject. I walk into class at the last minute, seemingly breathless, carrying a bolt of material, a cushion for a patio chair, and assorted supplies including pre-made trim, foam, thread, and zippers. At this point, I distribute information about materials purchased in bulk versus material actually required to make eight cushions. In small groups, students compute a cost per cushion and compare results.
Answers vary, of course, according to how they handle leftover materials.
I follow this short exercise with a more complicated set of data and ask the students to act as consultants on whether or not two owners experiencing cash flow problems in the second year of operating an upholstery business should close the business and resume working for others. South-Western College Publishing. All Rights Reserved.