Posts

Project- Investor Report

/in /by

Project- Investor Report

Project- Investor Report: Competencies

Project- Investor Report: In this project, you will demonstrate your mastery of the following competencies:

  • Describe how managerial accounting supports management information systems
  • Utilize managerial accounting techniques and models to support an organization’s strategic plan
  • Explain how managerial accounting is used to make decisions about short-term business opportunities, capital investments, and evaluating operational performance

https://geniusproessays.com/

Project- Investor Report: Scenario

Your business has been open for a month, and you have prepared an income statement and completed a variance analysis on the data. Now you will meet with investors and a few other internal stakeholders to share your company’s progress over the past month and how it has performed with respect to your cost and budget projections. The investors would like to see the thought process behind your financial strategy and how your company has performed in its first month. They have therefore asked you to present a report that includes the costing and income data from your Project Workbook.

Directions

Submit a detailed report to your potential investors and other stakeholders to explain and defend your costing strategies and to share your business’s performance to date. Your report can be in the form of a PowerPoint presentation or a Word document (based on the templates provided in the What to Submit section). In either format, be sure to effectively communicate with your stakeholders by breaking down concepts and using investor-friendly language to build their trust and confidence. If you choose to do a PowerPoint presentation, you’ll need to include speaker notes for each slide.

  1. Introduction: Provide a short overview of your company and the purpose of this report.
    1. Business Overview: Name your company and describe its business and your vision for its future.
    2. Purpose of the Report: Explain the purpose of the report and describe why the information is important.
    3. Methods and Approach: Explain the management accounting methods you used for generating the information that you are about to share in terms of your adherence to industry standards and the American Institute of Certified Public Accountants (AICPA) code of ethics.
  2. Financial Strategy: Review your original business plan and costing strategies.
    1. Costing System: Justify the use of job order costing for this business. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense.
    2. Selling Prices: Share and explain the selling prices you established for each of your products. Be sure to reference your cost-volume-profit analysis in your defense.
    3. Contribution Margin: Share and explain your contribution margin per unit. Be sure to reference your cost-volume-profit analysis in your defense.
    4. Target Profits: Identify your break-even points for achieving different target profits. Then explain the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.
  3. Financial Statements: Using the information in the Milestone Two Market Research Data Appendix, assess your financial performance to date.
    1. Statement of Cost of Goods Sold: Share the statement of cost of goods sold and logically interpret the business’s performance against the provided benchmarks.
    2. Income Statement: Share the income statement and logically interpret the business’s performance against the provided benchmarks.
    3. Variances: Illustrate all variances for the direct labor time and the materials price.
    4. Significance of Variances: Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning.

What to Submit

To complete this project, you must submit the following:

Investor Report PowerPoint Template Use this template to submit a PowerPoint presentation with speaker notes. Sources should be cited according to APA style.

OR

Investor Report Word Template Use this template to submit an 8- to 10-page Word document. Sources should be cited according to APA style.

Supporting Materials

The following resource(s) may help support your work on the project:

Resource: PowerPoint Office 365 This set of tutorials from Infobase provides helpful information on the basic features of Microsoft PowerPoint. Use the table of contents to select the tutorials that best suit your needs.

Project Rubric

Project- Investor Report

Criteria Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Introduction: Business Overview Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Identifies the name of the company and describes its business and vision Shows progress toward proficiency, but with errors or omissions; areas for improvement may include describing the company’s business or its vision Does not attempt criterion 5
Introduction: Purpose of the Report Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Explains the purpose of the presentation and describes why the accounting information is important Shows progress toward proficiency, but with errors or omissions; areas for improvement may include describing the importance of the accounting information Does not attempt criterion 5
Introduction: Methods and Approach Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Explains management accounting methods for generating information, and explains them in terms of adherence to industry standards and the AICPA code of ethics Shows progress toward proficiency, but with errors or omissions; areas for improvement may include providing adequate details regarding adherence to the industry standards or AICPA code of ethics Does not attempt criterion 10
Financial Strategy: Costing System Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Justifies the use of job order costing for this business; compares and contrasts the various costing systems as part of the defense Shows progress toward proficiency, but with errors or omissions; areas for improvement may include comparing various costing systems to defend the use of job order costing Does not attempt criterion 10
Financial Strategy: Selling Prices Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Identifies and explains the established selling prices; references the cost-volume-profit analysis Shows progress toward proficiency, but with errors or omissions; areas for improvement may include using the cost-volume-profit analysis to explain the established selling prices Does not attempt criterion 10
Financial Strategy: Contribution Margin Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Explains the chosen contribution margin per unit; references cost-volume-profit analysis Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining the contribution margin using the cost-volume-profit analysis Does not attempt criterion 10
Financial Strategy: Target Profits Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Identifies break-even points for achieving target profits; explains selected target profits for each area of the business; references the cost-volume-profit analysis Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adequately describing the selected target profits; using the cost-volume-profit analysis Does not attempt criterion 10
Financial Statements: Statement of Cost of Goods Sold Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Shares the statement of cost of goods sold and logically interprets the business’s performance against the provided benchmarks Shows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly interpreting the business’s performance based on the actual cost of goods sold Does not attempt criterion 10
Financial Statements: Income Statement Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Shares the income statement and logically interpret the business’s performance against the provided benchmarks Shows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly and logically interpreting the income statement Does not attempt criterion 10
Financial Statements: Variances Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Identifies all variances for the direct labor time and the materials price Shows progress toward proficiency, but with errors or omissions; areas for improvement may include identifying and sharing all variances Does not attempt criterion 5
Financial Statements: Significance of Variances Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Evaluates the significance of the variances in terms of the potential to impact future budgeting decisions and planning correctly Shows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly evaluating the significance and explaining how it impacts future planning Does not attempt criterion 10
Articulation of Response Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Clearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purpose Shows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, negatively impacting readability Submission has critical errors in grammar, sentence structure, and spelling, preventing understanding of ideas 5
Total: 100%

Managerial Accounting- Evelyn’s Sweets

/in /by

Managerial Accounting- Evelyn’s Sweets

Evelyn’s Sweets (Managerial Accounting- Evelyn’s Sweets)

https://geniusproessays.com/

Managerial Accounting- Evelyn’s Sweets: Evelyn has been working as an Administrative Assistant for the past four years. As a mother of an energetic five-year old, the part-time job has worked well for her. With Mick, her son, heading off to school next month (September 2022), Evelyn is considering new career options, perhaps starting in January. Her employer has been getting busier and has offered Evelyn full-time employment if she ever desires it. The full-time offer would transition Evelyn from an hourly rate of $21 per hour (she typically works 20 hours a week) to a salary of $44,000 per year (she is expected to work 35 hours a week).

In recent years, as Mick has grown up, Evelyn and her husband, Heath, have earned just enough to make ends meet. However, they are now looking to grow their savings while continuing to pay off their three-bedroom townhouse. As Heath’s income is expected to remain roughly constant over the near term, Evelyn pondering how she can boost her earnings. It’s not critical to amass more cash immediately as the couple has secured a $20,000 line of credit at 4.20% (there is no current balance and the rate expected to remain steady for the next year).

Evelyn has a natural talent for baking. Adults and children alike have complemented her cupcakes, cookies, muffins, etc. A fair number of them have told her that she could succeed if she were to start her own business. With some early planning/research, Evelyn has determined that the following sales numbers are reasonable for her first month of business, possibly January 2023:

Item Sales volume Sale price
Cookies- batch of 12 100 $6
Cupcakes- batch of 6 100 $6
Muffins- batch of 4 80 $8
Other N/A $500 (monthly total)

 

Evelyn has projected monthly fixed costs of $700 when she starts her business (these are currently incurred as living expenses though at lower rates such as depreciation of baking oven). There will also be approximate variable expenses equal to 38% of the sale price for each baked good (including other).

Evelyn has unused (and unfinished) space in her basement which can be used to build a bigger kitchen with storage. It would cost an estimated $14,000 to finish the basement, as well as an additional $5,000 in industrial-grade baking appliances (can only be installed in the basement due to input constraints). In theory, the basement, once finished, can be rented out at a rate of $800 per month, but, since purchasing the house seven years ago, Evelyn and Heath have opted not to finish the space for rental purposes.

With industrial appliances, Evelyn can bake, in addition to $1,000 worth of “other” goods, 500 items in total of cookies, cupcakes, and muffins (e.g. 200 dozens of cookies, 150 half-dozens of cupcakes, and 150 quartets of muffins) while working on a part-time work basis. Without industrial appliances, this volume could only be managed on a full-time work basis. Evelyn is wondering if the basement investment is worthwhile now or in the future. She wants a detailed analysis with all possible elements taken into consideration.

Evelyn is wondering how she may depreciate appliances. As her business is expected to grow, so will the use of appliances. Evelyn is wondering about how depreciation works, the most appropriate depreciation method for her needs, and how a sample monthly journal entry may look like.

Currently, Evelyn is projecting a growth rate of 4% per month compounding monthly for the first 24 months. This will be followed by annual growth of 7% per year for the next three years (at which point the business will be considered mature with no further growth). Evelyn is wondering if it is worthwhile to put some effort into marketing. By spending $200 a month on flyers, she believes the initial two-year monthly growth rate can be boosted to 4.25% (the growth rates after two years would remain unchanged).

By spending an extra $600 monthly on social media advertising, Evelyn can add an extra 0.25% to both the two-year growth rate as well as the three years after it. However, she is reluctant to use social media as she feels there may be some ethics issues. Evelyn is looking for advice on running an ethical business and wants a recommendation on the best marketing strategy for her.

Due to her administrative assistant experience, Evelyn is semi-aware of the importance of keeping accurate records and having a reliable accounting system. She wants you to give her some more advice on best accounting practices. Due to her busy schedule and slight disdain for numbers, Evelyn is strongly considering asking her friend Ryan to be a business partner with her. She is thinking of asking him to pay her $8,000 for a 30% share of the business. Additionally, he would be responsible for completing the bookkeeping and buying baking ingredients on a weekly basis. Without Ryan, these tasks would take 20% of Evelyn’s entrepreneurial work time. Evelyn wants a pros and cons analysis, as well as a recommendation, of taking on Ryan as a business partner (either now or in future).

 

Required: Managerial Accounting- Evelyn’s Sweets

Evelyn wants a detailed analysis of her business plan. She wants advice on ethics, business strategies, and other relevant matters. Evelyn welcomes any recommendations, as well as any questions to her which will help you better analyze her options. Please prepare a business memo to Evelyn, addressing all issues raised in this case.