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Question - Management Consultancy - Beverly Hills was a former OFW who went back to the Philippines last April 2020 after being terminated from her work due to the pandemic. Upon return to the country, she thought of establishing her own business using her savings from working abroad. She had many business options such as hog raising, farming, motor parts shop, and boutique shop. However, after many considerations, she ended up establishing the motor parts shop business considering her father is a motor vehicle mechanic who persuaded her to start the business as he had many customers already. With a start-up capital of 100,000, she looked for a possible supplier online for basic need motor parts upon the advice of her father. There were plenty of FB Groups who sell motor parts online however, the thought of getting scammed prevailed hence she opted to just buy in Iloilo City Downtown area. They decided to buy the motor parts from SKYGO because their parts can be used on other brands of motor vehicles and the product costs are cheaper while product quality is at an acceptable level. Having no space to rent yet at their town proper, Beverly decided to just do online selling of her items. Three months have passed however, only a few items were sold. The gains from selling the motor parts were quite promising yet monthly sales are low.
As a sole proprietor of a consultancy firm in their place, you have been tapped by Beverly to help her improve her business. She informed you that if you have further concerns, you can reach out to her via her email address.
What would be the appropriate activity that the consultancy firm should take when negotiating with the client about the engagement.
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.
Prepare a master budget for the three-month period.
Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.
Evaluate the Predetermined Overhead Rate
Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.
Complete the schedule to compute the pool rates for the different activities.
Prepare Company financial statements
This individual assignment is based on the TerraCycle Inc.
Discuss the ethical issues
Calculate the GDP in Income Approach and Expenditure Approach
A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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