Reference no: EM132313507 , Length: word count:3800
Assignment -
Introduction - In this assessment, you will need to demonstrate how to:
- Effectively manage and maintain key stakeholder relationships and;
- Analyse cost-volume profit for operational efficiencies.
Task 1 - Maintaining relationships with Stakeholders
Learning Outcome - Develop and maintain operational business relationships with internal and external stakeholders in facilitating organisational accountability and transparency in reporting process.
Instructions - This task will apply knowledge of theories on Stakeholder relationships.
1.1 - Identify four stakeholders (two internal and two external) and define the roles they have in reporting organisational accountability and transparency in the organisation.
1.2 - Develop a plan to maintain effective relationships with internal and external stakeholders. Identify six key factors that would contribute to maintain effective relationships to include in your plan.
1.3 - Examine and explain in your own words how each of the two theories below apply to maintaining professional relationships with internal and external stakeholders. A minimum of three points for each theory must be explained.
- Freeman's Normative theory and operational planning.
- Analytic theory and operational planning.
Task 2 - Management of operational processes
Learning Outcome - Apply professional and ethical behaviour in a socially and culturally appropriate manner and utilise relevant costing information to manage process, control costs, and leverage other drivers for operational efficiency.
Instructions - This task requires you to demonstrate knowledge of appropriate use of information to manage operational processes.
2.1 - Identify five (5) areas where cost is involved In operational efficiencies. For each area comment on how costs to the business are affected.
2.2 - Identify six (6) ways to manage business expenses and reduce costs.
2.3 - Evaluate how the Activity-Based. Cost-Cutting Strategy leverages off operational efficiencies.
2.4 - Suggest five (5) ways of controlling cost, taking into consideration professional and ethical behaviours, socially and culturally appropriate factors.
Task 3 - Cost-volume analysis for decision making and planning for operational efficiency
Learning Outcome - Utilise Cost-Volume-Profit Analysis for decision making and planning for operational efficiency.
Instructions - Use Cost-Volume-Profit Analysis to work out a solution for decision-making for scenario provided.
3.1 - What is the Profit Equation?
3.2 - What is the Contribution Margin in Cost-Volume-Profit Analysis?
3.3 - What is meant by the term Break-Even Point?
3.4 - Define the Cost-Volume-Profit Equation.
SCENARIO - If the Three M's Inc. has sales of $750,000 and total variable costs of $450.000 its contribution margin is $300.000. Assuming the company sold 250,000 units during the year, the per unit sales price is $3 and the total variable cost per unit is $1.80. The contribution margin per unit is $1.20. The contribution margin ratio is 40%. It can be calculated using either the contribution margin In dollars or the contribution margin per unit. To calculate the contribution margin ratio, the contribution margin is divided by the sales or revenues amount.
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The Three M's Inc. Break-even Income Statement
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Revenues (250.000 units x $3)
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$750,000
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Variable Costs (250.000 units x $1.80)
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$450,000
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Contribution Margin
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$300,000
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Fixed Costs
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$300,000
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Net Income
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$0
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Note - Word limit - 3800 words. Max 3800-4000 words.
Executive summary
Table of content
Introduction
Body
Conclusion
References - Max 5 references.