Selling Prices: Share and explain the selling prices you established for each of your products. Be sure to reference your cost-volume-profit anal
- 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.
- Contribution Margin: Share and explain your contribution margin per unit. Be sure to reference your cost-volume-profit analysis in your defense.
- 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.
- Financial Statements: Using the information in the Milestone Two Market Research Data Appendix, assess your financial performance to date.
- 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.
- Income Statement: Share the income statement and logically interpret the business’s performance against the provided benchmarks.
- Variances: Illustrate all variances for the direct labor time and the materials price.
- Significance of Variances: Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning.
Competencies
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
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.
A. Business Overview: Name your company and describe its business and your vision for its future.
B. Purpose of the Report: Explain the purpose of the report and describe why the information is important.
C. 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.
A. 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.
B. 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.
C. Contribution Margin: Share and explain your contribution margin per unit. Be sure to reference your cost-volume-profit analysis in your defense.
D. 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.
A. 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.
B. Income Statement: Share the income statement and logically interpret the business’s performance against the provided benchmarks.
C. Variances: Illustrate all variances for the direct labor time and the materials price.
D. 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.
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Project Rubric |
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|
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% |
,
Instructions
| Southern New Hampshire University | |||||||||||
| College of Continuing Education (COCE) | |||||||||||
| ACC202 – Managerial Accounting | |||||||||||
| MILESTONE 1 (Due in Module 2) | MILESTONE 2 (Due in Module 4) | MILESTONE 3 (Due in Module 5) | |||||||||
| 1. | 1. | 1. | |||||||||
| Name | Choose a price range and calculate: | Create a Cost of Goods Manufactured Schedule | |||||||||
| Location | Grooming | ||||||||||
| Vision | Day Care | ||||||||||
| Mission | Boarding | ||||||||||
| 2. | 2. | 2. | |||||||||
| Identify the following: | Calculate the break-even units | Create an Income Statement | |||||||||
| Direct Materials | Grooming | Revenue will be provided end of week 4 | |||||||||
| Diret Labor | Day Care | ||||||||||
| Manufacturing Overhead | Boarding | ||||||||||
| Period Costs | Calculate the break-even for target profits | ||||||||||
| 3. | Grooming | 3. | |||||||||
| Day Care | |||||||||||
| Calculate the Variable & Fixed Costs for: | Boarding | Calculate for the Grooming line: | |||||||||
| Grooming | Direct Labor Time Variance | ||||||||||
| Day Care | Direct Labor Rate Variance | ||||||||||
| Boarding | Direct Materials Efficiency Variance | ||||||||||
| Direct Materials Price Variance |
ACC202 – MANAGERIAL ACCOUNTING
Company Profile
/xl/drawings/drawing1.xml#CompanyProfile
Variable & Fixed Costs
/xl/drawings/drawing1.xml#VariableFixedCosts
Cost Classification
/xl/drawings/drawing1.xml#CostClassification
Contribution Margin
/xl/drawings/drawing1.xml#ContributionMargin
Break-Even Analysis
/xl/drawings/drawing1.xml#BreakevenAnalysis
COGM Schedule
/xl/drawings/drawing1.xml#COGMSchedule
Income Statement
/xl/drawings/drawing1.xml#COGMSchedule
Variances
/xl/drawings/drawing1.xml#Variances
Instructions Milestone 1
/xl/drawings/drawing1.xml#InstructionsMilestone1
Instructions Milestone 2
/xl/drawings/drawing1.xml#'Instructions%20-%20Milestone%202'!InstructionsMilestone2
Instructions Milestone 3
/xl/drawings/drawing1.xml#'Instructions%20-%20Milestone%203'!InstructionsMilestone3
Instructions – Milestone 1
| Southern New Hampshire University | ||||
| College of Continuing Education (COCE) | ||||
| ACC202 – Managerial Accounting | ||||
| INSTRUCTIONS FOR MILESTONE 1 (Due Week 2) | ||||
| IMPORTANT NOTE: | ||||
| Make sure to completely review the Rubric for Milestone 1 | ||||
| Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7) | ||||
| ITEMS TO COMPLETE FOR THIS MILESTONE (Blue Tabs): | ||||
| GENERAL | ||||
| You plan to open a pet services business that will offer dog grooming, day care and boarding | ||||
| COST CLASSIFICATION | ||||
| Accurately classify all of your costs (direct material, direct labor, manufacturing overhead, period costs) | ||||
| Fixed & Variable cost designation is provided | ||||
| VARIABLE & FIXED COSTS | ||||
| Determine your per unit cost per dog for grooming, day care and boarding | ||||
| OPERATIONAL & COST INFORMATION: | ||||
| For simplicity, base all calculations using 30 days in each month | ||||
| OPERATIONAL DATA | ||||
| Grooming: | ||||
| The Groomer can groom 5 dogs a day, 5 days a week | ||||
| Each grooming takes 1.5 labor hours | ||||
| Day Care: | ||||
| The Day Care can house 10 large dogs and 12 small dogs daily. | ||||
| Day Care is offered 6 days a week | ||||
| Boarding: | ||||
| There are 12 kennels (single dog only). | ||||
| Boarding (kennel services) is offered every day | ||||
| Facilities: | ||||
| The Grooming facility is 200 square feet | ||||
| The Boarding facility is 2,500 square feet | ||||
| The Day Care facility is 1,500 square feet | ||||
| General: | ||||
| Loan for start-up costs – monthly payment of $420; in effect immediately; limited cash and loan funding – used angel investors | ||||
| Modest monthly draw of $600 a month for first year; should be divided evenly amoung the services (grooming, day care, boarding) | ||||
| SALARY & HIRING DATA | ||||
| Groomer (Allison) – $12.00 an hour, 40 hours a week | ||||
| Day Care Attendant (Beverly) – $9.00 per hour, based on need | ||||
| Receptionist (Cathie) – $8.50 per hour, 30 hours a week | ||||
| Kennel Attendant (Ben) – $11.50 per hour, based on need | ||||
| OTHER COST DATA | ||||
| Grooming: | ||||
| Dog Grooming Arm – $300 | . | |||
| Grooming Table – $900 | ||||
| Grooming Tub – $2,800 | ||||
| Clippers – $136.99; can be used for 100 grooms | ||||
| Shampoo – $103.96 per 5-gallon pail; can be used for 100 grooms | ||||
| Salon Tuff Capri Mobile Carry Cart – $90 | ||||
| Scissors (7 inch straight) – $194.99; used for 200 grooms | ||||
| Scissors (ear and nose) – $7.49; used for 200 grooms | ||||
| Day Care: | ||||
| Fencing for Day Care area – $1,249 | ||||
| Fencing Installation – $1,000 | ||||
| Toys – $3.29 per 6 pack; one toy will last for two dogs in day care per day | ||||
| Rubberized Flooring for Day Care – $3,800 | ||||
| Boarding: | ||||
| 12 Kennels; Depreciation is $80 per month | ||||
| General: | ||||
| Food & Water bowls – $3.59 per unit | ||||
| Day Care – two bowls last for every 75 dogs that attend daycare | ||||
| Boarding – two bowls last for every 100 dogs boarded; two bowls per kennel | ||||
| Grooming – each bowl lasts for 20 grooms and you need 4 bowls at all times | ||||
| Towels – $34.99 per 12 pack | ||||
| Day Care – 12 towels for every 25 dogs | ||||
| Boarding – 12 towels for every 40 dogs | ||||
| Grooming – 2 towels for every groom per day | ||||
| Heating System – $10,000; Depreciation is $83 per month; Allocate based on square footage | ||||
| Rent – $650 per month; Allocate based on square footage | ||||
| Utilities / Insurance – $600 per month; Allocate based on square footage | ||||
| Cage Bank – $2,200 per set of 5 | ||||
| Dryer – $1,250 | ||||
| Cleaning Products | ||||
| Odoban – $14.55 per gallon; Each area wil dilute 1 oz to 1 gallon of water; Allocate based on square footage | ||||
| Simple Green – $15.66 per gallon; Each area will dilute 1 oz to 1 gallon of water; Allocate based on square footage | ||||
| . |
ACC202 – MANAGERIAL ACCOUNTING
HOME
Cost Classification
| Milestone One – Cost Classification | ||||||
| INSTRUCTIONS: | ||||||
| Putting an X in the appropriate spot, classify the costs as: Direct Material, Direct Labor, Overhead, or Period Costs. | ||||||
| The Fixed and Variable cost classifications have been provided for you. | ||||||
| Item/Cost | Direct Material | Direct Labor | Overhead | Period Costs | Fixed | Variable |
| Salary – Collar maker | x | x | ||||
| Salary – Leash maker | x | x | ||||
| Salary – Harness maker | x | x | ||||
| Salary – Receptionist | x | |||||
| High-tensile strength nylon webbing | x | x | ||||
| Polyester/nylon ribbons | x | x | ||||
| Buckles made of cast hardware | x | x | ||||
| Depreciation on sewing machines | x | |||||
| Rent | x | |||||
| Utilities and insurance | x | |||||
| Scissors, thread, and cording | x | |||||
| Price tags | x | x | ||||
| Office supplies | x | |||||
| Other business equipment | x | |||||
| Loan payment | x | x | ||||
| Salary to self | x | x | ||||
&8ACC202 – MANAGERIAL ACCOUNTING
HOME
Variable and Fixed Costs
| Milestone One – Variable and Fixed Costs | |||||||
| Collars | |||||||
| Item | Variable Cost/Item | Item | Fixed Costs | ||||
| High-tensile strength nylon webbing | $ 4.00 | Collar maker's salary (monthly) | $ 2,773.33 | ||||
| Polyester/nylon ribbons | $ 3.00 | Depreciation on sewing machines | $ 55.00 | ||||
| Buckles made of cast hardware | $ 2.00 | Rent | $ 250.00 | ||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | ||||
| Scissors, thread, and cording | $ 400.00 | ||||||
| Loan payment | $ 183.33 | ||||||
| Salary to self | $ 166.67 | ||||||
| Total Variable Costs per Collar | $ 9.10 | Total Fixed Costs | $ 4,028.33 | ||||
| Leashes | |||||||
| Item | Variable Cost/Item | Item | Fixed Costs | ||||
| High-tensile strength nylon webbing | $ 6.00 | Leash maker's salary (monthly) | $ 2,733.33 | ||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | ||||
| Buckles made of cast hardware | $ 1.50 | Rent | $ 250.00 | ||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | ||||
| Scissors, thread, and cording | $ 400.00 | ||||||
| Loan payment | $ 183.33 | ||||||
| Salary to self | $ 166.67 | ||||||
| Total Variable Costs per Leash | $ 12.10 | Total Fixed Costs | $ 4,028.33 | $ 3,988.33 | |||
| Harnesses | |||||||
| Item | Variable Cost/Item | Item | Fixed Costs | ||||
| High-tensile strength nylon webbing | $ 6.00 | Harness maker's salary | $ 2,946.67 | ||||
| Polyester/nylon ribbons | $ 4.50 | Depreciation on sewing machines | $ 55.00 | ||||
| Buckles made of cast hardware | $ 4.00 | Rent | $ 250.00 | ||||
| Price tags | $ 0.10 | Utilities and insurance | $ 200.00 | ||||
| Scissors, thread, and cording | $ 400.00 | ||||||
| Loan | $ 183.33 | ||||||
| Salary to self | $ 166.67 | ||||||
| Total Variable Costs per Harness | $ 14.60 | Total Fixed Costs | $ 4,201.67 | ||||
&8ACC202 – MANAGERIAL ACCOUNTING
Instructions – Milestone 2
| Southern New Hampshire University |
| College of Continuing Education (COCE) |
| ACC202 – Managerial Accounting |
| INSTRUCTIONS FOR MILESTONE 2 (Due Week 4) |
| IMPORTANT NOTE: |
| Make sure to completely review the Rubric for Milestone 2 |
| Use the data from this Milestone and begin working on your final presentation due in Milestone 4 (Week 7) |
| ITEMS TO COMPLETE FOR THIS MILESTONE (Green Tabs): |
| GENERAL |
| Use data from Milestone 1 in your analysis |
| CONTRIBUTION MARGIN ANALYSIS |
| Select a price for each service (grooming, day care, boarding) |
| Determine the variable cost from the Variable_Fixed tab for each service |
| Calculate the contribution margin for each service based on your sales price and the variable cost for that service |
| BREAK-EVEN ANALYSIS |
| Determine the fixed cost from the Variable_Fixed tab for each service |
| Fixed & Variable cost designation is provided |
| Calculate the break-even units (round up) for each service |
| Calculate the break-even units (round up) for suggested target profit levels for each service |
ACC202 – MANAGERIAL ACCOUNTING
HOME
Contribution Margin Analysis
| Milestone Two – Contribution Margin Analysis | |||||
| COLLARS | LEASHES | HARNESSES | |||
| Sales Price per Unit | $ 24.00 | $ 22.00 | $ 35.00 | ||
| Variable Cost per Unit | 9.10 | 12.10 | 14.60 | ||
| Contribution Margin | $ 14.90 | $ 9.90 | $ 20.40 | ||
&8ACC202 – MANAGERIAL ACCOUNTING
HOME
Break-Even Analysis
| Milestone Two – Break-Even Analysis | ||||||
| COLLARS | LEASHES | HARNESSES | ||||
| Sales Price | $ 24.00 | $ 22.00 | $ 35.00 | |||
| Fixed Costs | $ 4,028 |
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