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
Category: Accounting
Accounting Project
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.
Introduction: Provide a short overview of your company and the purpose of this report.
Business Overview: Name your company and describe its business and your vision for its future.
Purpose of the Report: Explain the purpose of the report and describe why the information is important.
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.
Financial Strategy: Review your original business plan and costing strategies.
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.
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. (Attached)
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.
Accounting Project
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.
Introduction: Provide a short overview of your company and the purpose of this report.
Business Overview: Name your company and describe its business and your vision for its future.
Purpose of the Report: Explain the purpose of the report and describe why the information is important.
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.
Financial Strategy: Review your original business plan and costing strategies.
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.
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.
Budget in Service Company (Cash Budget)
Edge Soccer Program (Edge) began the year with a cash balance of $10,500. The budget forecasts that collections from customers owed to the company will be $11,000 in January and $15,200 in February. The soccer program is also supposed to receive $8,500 in January on a note receivable from a soccer club that owes Edge for training.
Edge plans to purchase soccer equipment in January and February with cash. The budgeted amounts of the purchases are $15,600 in January and $14,800 in February. Operating costs for the business is $2900 per month.
Edge must maintain a minimum cash balance of $10,000 in their bank account at all times. If the amount in the bank account falls below $10,000, then bank extends credit to Edge immediately in multiples of $1000. Edge pays back any amounts borrowed each quarter in payments of $2000 plus 4% interest. The first payment occurs three (3) months after the bank has extended edge credit.
Requirement
Prepare a cash budget for January and February.
The capital asset pricing model
The capital asset pricing model, or CAPM, is used to price an individual security or portfolio. The general idea behind CAPM is that investors should be compensated in two ways, for the time value of their money and risk incurred. The model helps investors calculate risks and what type of return they should expect on their investment. The time money value is represented by the risk-free rate, usually a 10-year government bond yield, and compensates the investors for placing money in an investment over a period of time. That is added to the other half of the formula which represents risk. It calculates the amount of compensation the investor needs for taking on additional risk. This is done by taking a Beta, which measures a stock’s volatility, and multiplies by its premium. The premium is calculated by subtracting the risk-free rate of return from the expected return of the market. For example, the expected return of a stock can be figured out in the following way using a model. If the risk-free rate is 3% the Beta or risk measure of the stock is 3 and the expected market return over the period is 11%. The stock is expected to return 27%. In short, if the expected return does not make the risk worth it, the investment should not be made.
Respond to the following questions:
You are the chief financial officer (CFO) of a multi-physician clinic. Do you see weaknesses or strengths in the capital asset pricing model (CAPM)? Explain your response and support it with examples. Include a consideration of the small market line (SML).
Your chief executive officer (CEO) asks you to decide between debt and equity financing. Explain which the best option is. Discuss the factors that influence your decision.
The importance of opportunity costs to decision-making
Research elasticity information for two particular goods: one with an elastic demand and one with an inelastic demand. Using elasticity information you gather, predict changes in demand. The United States Department of Agriculture website has a good resource to help with this.
Describe how marginal analysis, by avoiding sunk costs, leads to better pricing decisions.
Explain the importance of opportunity costs to decision-making and how opportunity costs lead to trade.
Evaluate how better business decisions can benefit not just the producer but the consumer and society as a whole. In your evaluation, contrast the deontology and consequentialism approaches to ethics.
Oversight pursue a partnership with Global Credit and/or Banking Worldwide
Should Oversight pursue a partnership with Global Credit and/or Banking Worldwide? In making this decision, please specify the terms and conditions of a channel partnership, including price, exclusivity (or not), support, and the roles and responsibilities of Oversights and a channel partner. Which of these terms would you view as “must haves” if you were Patrick Taylor, and which would you view as “nice to have”?
In your view, what should be the goal(s) of a channel partnership at this stage of the venture? Please indicate how GC or BW does or does not help Oversight to achieve those goals.
What is Oversight selling? What is the customer buying? What are the implications of the buying and selling process for evaluating potential channel partners?
What can we learn about successful and unsuccessful channel partnerships form Oversight’s previous experience with Enterprise Software Giant and Concur? What are the implications for a potential partnership with GC or BW?
Consider the pivot Oversight made in its product line from the customized CCM offering to the IOD product line. What changed in the venture and what are the implications?
Quantitative, Qualitative, Mixed-Methods
Read: Robson & McCartan: Chapter 16
Watch: APA Style Basics: 7th Edition
BUSI 710 Mini-Concept Paper Template in attachment
MINI-CONCEPT PAPER ASSIGNMENT
Mini-Concept Paper Assignment Instructions
Using the feedback that has been given throughout the term, please write a mini-concept paper. The mini-concept paper is similar to a concept paper that one would do for a dissertation/project proposal. The paper should include the following elements in order:
· Introduction
· Problem Statement
· Conceptual/Theoretical Framework & Diagram
· Research Paradigm
· Purpose Statement
· Significance of the Study
· Research questions (2-3 questions either quantitative or qualitative)
· Hypotheses if appropriate (quantitative studies only)
· Chosen Method (Fixed, Flexible, or Mixed-Methods) with rationale
· Chosen Design (Quantitative, Qualitative, Mixed-Methods) with rationale
· Chosen Design Method (i.e., Correlation, Case Study, Phenomenological, etc.) with rationale
· Summary
Quantitative, Qualitative, Mixed-Methods
Read: Robson & McCartan: Chapter 16
Watch: APA Style Basics: 7th Edition
BUSI 710 Mini-Concept Paper Template in attachment
MINI-CONCEPT PAPER ASSIGNMENT
Mini-Concept Paper Assignment Instructions
Using the feedback that has been given throughout the term, please write a mini-concept paper. The mini-concept paper is similar to a concept paper that one would do for a dissertation/project proposal. The paper should include the following elements in order:
· Introduction
· Problem Statement
· Conceptual/Theoretical Framework & Diagram
· Research Paradigm
· Purpose Statement
· Significance of the Study
· Research questions (2-3 questions either quantitative or qualitative)
· Hypotheses if appropriate (quantitative studies only)
· Chosen Method (Fixed, Flexible, or Mixed-Methods) with rationale
· Chosen Design (Quantitative, Qualitative, Mixed-Methods) with rationale
· Chosen Design Method (i.e., Correlation, Case Study, Phenomenological, etc.) with rationale
· Summary
How product designers maximize the value they provide to users
How can product designers maximize the value they provide to users? Discuss how products and services create value for users.