Successful completion of project

Assignment Help Business Management

Reference no: EM131428467

Upon successful completion of this project, the student will be able to:

1. Evaluate how managerial accounting relates to business decision-making

2. Apply cost estimation, analysis, and planning techniques for an organization

3. Assess budgets and financial documents in organizational planning, controlling, and decision-making

Case Description (or Background Information)

In today's economy, businesses are forced to make financial decisions that can have a direct impact on operations and the ability to successfully compete in the marketplace. This is why it is imperative for a business to prepare certain forms for analysis, especially in managerial accounting. For this project, you will create the accounting portions of a business plan using an assortment of tools presented in the course. You will select a business that is of interest to you and compile the documents listed under Project Instructions. A suggested length for the deliverable should be 5-7 pages written report in APA formatting. The paper may be longer if required.

Project Instructions

In this business plan project assignment, you will use tools and skills that are learned throughout the course. It will include multiple facets of managerial accounting. The paper needs to be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides, and a suggested length of 5-7 pages; citations and references must follow APA format. Use at least one quality reference. Note: Wikipedia and other Websites such as blogs or social media do not quality as academic resources.

Choose a business that interests you that you would like to start. You can use an existing business, as long as you go through the process of starting it. This is the specific business you will write your financial business plan for. To start, you will need to have an introduction that describes:

Why you chose this business and have some basic information on the market, location, competition
Why you think this business would be profitable, and how your financial decisions will affect the business.

After this introductory portion, you will get into the financial plan. The following are detailed areas that are requirements for your final project.

1. Startup Cost Analysis:

In this section, you will include a detailed list of how much it will cost to start the business. This should include most, if not all, of the following: cost of property, buildings, machinery, equipment, planning, legal fees, consulting fees, etc., along with one year of operational costs.

2. Cost/Benefit Analysis:

In this section, you will need to look at detailed analysis of the advantages and disadvantages of the business. Determine if your business is a sound investment decision (justification/feasibility) by conducting a SWOT Analysis, and compare the total expected cost (disadvantages) of each against the total expected benefits (advantages), to see whether the benefits outweigh the costs, and by how much.

3. Breakeven Analysis:

In this section, you will perform a basic breakeven analysis. Estimate basic variable and fixed costs that will accrue in operations and then compare this to how much revenue (units that need to be sold) is needed to cover these costs. This should include your basic operational costs (i.e. salaries, rent, utilities, product costs... etc.). Be sure to include calculations and a graph showing your breakeven analysis.

4. Cost-Volume-Profit Analysis:

In this section, you will perform a cost-volume-profit analysis, you will investigate outside factors that may influence your breakeven analysis. You need identify 2 to 4 qualitative outside factors that can vary between your base case (the breakeven analysis) and changes to this base case. You also need to weigh the pros/cons of each of these outside factors. These outside factors can include change of location(s), changes in competition, or changes in outside market factors (i.e. stock market, oil prices, commodities, or anything that can affect revenue for your business). Be sure to include calculations and graphs for cost-volume-profit analysis.

5. Pro-Forma Financial Statements:

In this section, you will create pro-forma financial statements in which you will estimate the financial operations of your business. This will include a pro-forma income statement, pro-forma statement of cash flows, and a pro-forma balance sheet. You need to project out each of these for 3 years (all 3 years can be listed on one statement). These are estimations, but will be used to help you project how your business will do.

Note: advance managerial accounting

Reference no: EM131428467

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