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 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 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 Milestone Two Market Research Data Appendix You have conducted some market research for style and size of products you want to use to launch your business The market research has indicated the following sales price ranges will be optimal for your area depending on style of products you choose to sell Collars With pricing at $20 per collar, you can expect to sell 30 collars per day With pricing at $24 per collar, you can expect to sell 25 collars per day With pricing at $28 per collar, you can expect to sell 20 collars per day Leashes With pricing at $22 per leash, you can expect to sell 28 leashes per day With pricing at $26 per leash, you can expect to sell 23 leashes per day With pricing at $30 per leash, you can expect to sell 18 leashes per day Harnesses With pricing at $25 per harness, you can expect to sell 25 harnesses per day With pricing at $30 per harness, you can expect to sell 22 harnesses per day With pricing at $35 per harness, you can expect to sell 20 harnesses per day Additionally, you will need to compare your break even points for the following target profits for each area of your business to determine your prices Collars Break even $300 target profit each month $500 target profit each month Leashes Break even $400 target profit each month $600 target profit each month Harnesses Break even $500 target profit each month $650 target profit each month Note To complete this template, replace the bracketed text with your own content Remove this note before you submit your paper Investor Report for Company Name Introduction Outline your company's business and your vision for its future Introduce the company and its business What is your vision for the future of the business What do you hope to achieve Where do you see the company in five years or ten Purpose Explain the purpose of the report and what you hope to convey about the company and its financials What do you plan to communicate, and why should your investors pay attention In other words, try to persuade your investors that the accounting information you are about to share is important Methods and Approach Explain some management accounting methods you used to determine your costing strategy, evaluate your financial information, etc , and explain how these methods support the mission and vision of the company Briefly describe how your report and the data it represents adheres to industry standards and the AICPA code of ethics In other words, why should your investors trust that you are delivering accurate financial data and that your decision making process has been ethical Financial Strategy In this section, review your original business plan and costing strategies Remove this note before you submit your paper Costing System Outline why the job order costing system works best for your business Explain in detail 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 List the selling price you chose for each product Explain and defend the selling prices you established for each product Why did you choose these prices Be sure to reference your cost volume profit analysis in your defense Contribution Margin Copy and paste your completed table from the Contribution Margin Analysis tab of your Project Workbook Share and explain your contribution margin per unit How did you arrive at these numbers Be sure to reference your cost volume profit analysis in your defense Target Profits Copy and paste the completed table from the Break Even Analysis tab of your Project Workbook Specify the break even points you determined for achieving different target profit levels Then, explain and defend 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 This section is designed to have you assess your financial performance to date Remove this note before you submit your paper Statement of Cost of Goods Sold Copy and paste your table from the COGS tab of your completed Project Workbook Compare the actual cost of goods sold over the last month and evaluate the company's performance against the budgeted benchmarks Are the numbers close to what you expected Interpret the performance and explain what happened Income Statement Copy and paste your table from the Income Statement tab of your completed Project Workbook Based on your income statement, logically interpret the business's performance against the provided benchmarks Did the company do as well as expected Explain what happened Variances Copy and paste your table from the completed Variances tab of your Project Workbook Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars What changed Significance of Variances Share a summary of your variance analysis Were the variances favorable or unfavorable Evaluate the significance of the variances Are the variances favorable or unfavorable What does it mean Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter References Include any references cited in your paper in full APA format Don't forget to include in text citations as well

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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

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.

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.
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.

Milestone Two: Market Research Data Appendix

You have conducted some market research for style and size of products you want to use to launch your business. The market research has indicated the following sales price ranges will be optimal for your area depending on style of products you choose to sell:

Collars
With pricing at $20 per collar, you can expect to sell 30 collars per day.
With pricing at $24 per collar, you can expect to sell 25 collars per day.
With pricing at $28 per collar, you can expect to sell 20 collars per day
Leashes
With pricing at $22 per leash, you can expect to sell 28 leashes per day.
With pricing at $26 per leash, you can expect to sell 23 leashes per day.
With pricing at $30 per leash, you can expect to sell 18 leashes per day.
Harnesses
With pricing at $25 per harness, you can expect to sell 25 harnesses per day.
With pricing at $30 per harness, you can expect to sell 22 harnesses per day.
With pricing at $35 per harness, you can expect to sell 20 harnesses per day.

Additionally, you will need to compare your break-even points for the following target profits for each area of your business to determine your prices:

Collars
Break-even
$300 target profit each month
$500 target profit each month
Leashes
Break-even
$400 target profit each month
$600 target profit each month
Harnesses
Break-even
$500 target profit each month
$650 target profit each month

[Note:To complete this template, replace the bracketed text with your own content. Remove this note before you submit your paper.]

Investor Report for [Company Name]

Introduction

[Outline your company's business and your vision for its future.]

[Introduce the company and its business. What is your vision for the future of the business? What do you hope to achieve? Where do you see the company in five years or ten?]

Purpose

[Explain the purpose of the report and what you hope to convey about the company and its financials.]

[What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important.]

Methods and Approach

[Explain some management accounting methods you used to determine your costing strategy, evaluate your financial information, etc., and explain how these methods support the mission and vision of the company.]

[Briefly describe how your report and the data it represents adheres to industry standards and the AICPA code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your decision-making process has been ethical?]

Financial Strategy

[In this section, review your original business plan and costing strategies. Remove this note before you submit your paper.]

Costing System

[Outline why the job order costing system works best for your business. Explain in detail 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

[List the selling price you chose for each product.]

[Explain and defend the selling prices you established for each product. Why did you choose these prices? Be sure to reference your cost-volume-profit analysis in your defense]

Contribution Margin

[Copy and paste your completed table from the "Contribution Margin Analysis" tab of your Project Workbook.]

[Share and explain your contribution margin per unit. How did you arrive at these numbers? Be sure to reference your cost-volume-profit analysis in your defense.]

Target Profits

[Copy and paste the completed table from the "Break-Even Analysis" tab of your Project Workbook.]

[Specify the break-even points you determined for achieving different target profit levels. Then, explain and defend 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

[This section is designed to have you assess your financial performance to date. Remove this note before you submit your paper.]

Statement of Cost of Goods Sold

[Copy and paste your table from the "COGS" tab of your completed Project Workbook.]

[Compare the actual cost of goods sold over the last month and evaluate the company's performance against the budgeted benchmarks. Are the numbers close to what you expected? Interpret the performance and explain what happened.]

Income Statement

[Copy and paste your table from the "Income Statement" tab of your completed Project Workbook.]

[Based on your income statement, logically interpret the business's performance against the provided benchmarks. Did the company do as well as expected? Explain what happened.]

Variances

[Copy and paste your table from the completed "Variances" tab of your Project Workbook.]

[Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?]

Significance of Variances

[Share a summary of your variance analysis. Were the variances favorable or unfavorable?]

[Evaluate the significance of the variances. Are the variances favorable or unfavorable? What does it mean? Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter.]

References

[Include any references cited in your paper in full APA format. Don't forget to include in-text citations as well.]