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 accounting 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 What to Submit To complete this project, you must submit the following Investor Report Word Template Use this template to submit an 8 to 10 page Word document Sources should be cited according to APA style Milestone Two Contribution Margin Analysis COLLARS Sales Price per Unit S 20 00 Variable Cost per Unit 9 10 Contribution Margin S 10 90 LEASHES 22 00 12 10 5 90 HARNESSES 25 00 14 60 10 40 Your Contribution Margins are perfect Milestone Two Break Even Analysis COLLARS LEASHES HARNESSES Sales Price 20 00 22 00 25 00 Fixed Costs S 4,028 33 S 4,028 33 S 4,201 67 Contribution Margin S 10 90 9 90 S 10 40 Break Even Units (round up) 370 00 407 00 405 00 Target Profit 300 00 S 400 00 S 500 00 Break Even Units (round up) 398 00 448 00 453 00 Target Profit S 500 00 600 00 S 650 00 Break Even Units (round up) 416 00 468 00 467 00Milestone Three Statement of Cost of Goods Sold Beginning Work in Process Inventory 8 Direct Materials Materials Beginning 0 Add Purchases for month of January 5 20,000 Materials available for use 20,000 Deduct Ending materials 4,000 Materials Used 16,000 Direct Labor 8,493 Overhead 3,765 Total Costs 5 28,258 Deduct Ending Work in Process Inventory 0 Cost of Goods Sold 5 28,258 Milestone Three Income Statement Revenue Collars S 13,200 Leashes 12,320 Harnesses 12,500 Total Revenue S 38,020 Cost of goods sold 28,258 Gross profit 9,762 Expenses General and administrative salaries 5 1,950 Office supplies 200 Other business equipment 150 Total Expenses $ 2,300 00 Net Income Loss S 7,462 00Milestone Three Variance Analysis Data for Variance Analysis Budgeted Budgeted (Standard) (Standard) Hours Qty Rate Labor Materials Actual Hours Qty Actual Rate Variances for Collar Sales Direct Labor Time Variance (Actual Hours Standard Hours) x Standard Rate Direct Labor Rate Variance (Actual Rate Standard Rate) x Actual Hours Direct Materials Quantity Efficiency Variance Actual Quantity Standard Quantity) x Standard Price Direct Materials Price Variance (Actual Price Standard Price) x Actual Quantity Variance Favorable Unfavorable 320 00 90 00 546 00 594 00 Unfavorable Unfavorable Unfavorable Unfavorable Collars Item ariable Cost Item Item Fixed Costs High tensile strength nylon webt $ 4 00 Collar maker's salary (monthly) $ 2 773 33 Polyesternylon ribbons 3 00 Depreciation on sewing machine 55 00 Buckles made of cast hardware 2 00 Rent 250 00 Price tags 0 10 Utilities and insurance 200 00 Scissors, thread, and cording 400 00 Loan payment 183 33 Salary to self 166 67 Total Variable Costs per C $ 9 10 Total Fixed Costs $ 4,028 33 Leashes Item ariable Cost ltem Item Fixed Costs High tensile strength nylon webt $ 6 00 Leash maker's salary monthly) $ 2,773 33 18 Polyesternylon ribbons 4 50 Depreciation on sewing machine 65 00 Buckles made of cast hardware 1 50 Rent 250 00 0 Price tags P 0 10 g Utilities and insurance 200 00 Scissors, thread, and cording 400 00 Loan payment 183 33 Salary to self 166 67 Total Variable Costs per L $ 12 10 Total Fixed Costs $ 4,028 33 Harnesses Item ariable Cost ltem Item Fixed Costs High tensile strength nylon webt $ 6 00 Harness maker's salary 2 946 67 Polyesternylon ribbons 4 50 Depreciation on sewing machine 55 00 Buckles made of cast hardware 4 00 Rent 250 00 Price tags 0 10 Utilities and insurance 200 00 Scissors, thread, and cording 400 00 Loan 183 33 Salary to self 166 67 Total Variable Costs per H $ 14 60 Total Fixed Costs $ 4,201 67

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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

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.
1. Business Overview: Name your company and describe its business and your vision for its future.
2. Purpose of the Report: Explain the purpose of the report and describe why the accounting information is important.
3. 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.
1. 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.
2. 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.
3. Contribution Margin: Share and explain your contribution margin per unit. Be sure to reference your cost-volume-profit analysis in your defense.
4. 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.
1. 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.
2. Income Statement: Share the income statement and logically interpret the business's performance against the provided benchmarks.
3. Variances: Illustrate all variances for the direct labor time and the materials price.
4. Significance of Variances: Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning.

What to Submit

To complete this project, you must submit the following:

Investor Report Word Template Use this template to submit an 8- to 10-page Word document. Sources should be cited according to APA style.

Milestone Two - Contribution Margin Analysis COLLARS Sales Price per Unit S 20.00 Variable Cost per Unit 9.10 Contribution Margin S 10.90 LEASHES 22.00 12.10 5.90 HARNESSES 25.00 14.60 10.40 Your Contribution Margins are perfect! Milestone Two - Break-Even Analysis COLLARS LEASHES HARNESSES Sales Price 20.00 22.00 25.00 Fixed Costs S 4,028.33 S 4,028.33 S 4,201.67 Contribution Margin S 10.90 9.90 S 10.40 Break-Even Units (round up) 370.00 407.00 405.00 Target Profit 300.00 S 400.00 S 500.00 Break-Even Units (round up) 398.00 448.00 453.00 Target Profit S 500.00 600.00 S 650.00 Break-Even Units (round up) 416.00 468.00 467.00Milestone Three - Statement of Cost of Goods Sold Beginning Work in Process Inventory 8 - Direct Materials: Materials: Beginning 0 Add: Purchases for month of January 5 20,000 Materials available for use 20,000 Deduct: Ending materials 4,000 Materials Used 16,000 Direct Labor 8,493 Overhead 3,765 Total Costs 5 28,258 Deduct: Ending Work in Process Inventory 0 Cost of Goods Sold 5 28,258 Milestone Three - Income Statement Revenue: Collars S 13,200 Leashes 12,320 Harnesses 12,500 Total Revenue: S 38,020 Cost of goods sold 28,258 Gross profit 9,762 Expenses: General and administrative salaries 5 1,950 Office supplies 200 Other business equipment 150 Total Expenses $ 2,300.00 Net Income/Loss S 7,462.00Milestone Three - Variance Analysis Data for Variance Analysis: Budgeted Budgeted (Standard) (Standard) Hours/Qty Rate Labor Materials Actual Hours/Qty Actual Rate Variances for Collar Sales Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours Direct Materials Quantity/Efficiency Variance {Actual Quantity - Standard Quantity) x Standard Price Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity Variance Favorable/ Unfavorable 320.00 90.00 546.00 594.00 Unfavorable Unfavorable Unfavorable Unfavorable Collars Item ariable Cost/Item Item Fixed Costs High-tensile strength nylon webt $ 4.00 Collar maker's salary (monthly) $ 2.773.33 Polyesternylon ribbons 3.00 Depreciation on sewing machine 55.00 Buckles made of cast hardware 2.00 Rent 250.00 Price tags 0. 10 Utilities and insurance 200.00 Scissors, thread, and cording 400.00 Loan payment 183.33 Salary to self 166.67 Total Variable Costs per C $ 9.10 Total Fixed Costs $ 4,028.33 Leashes Item ariable Cost/ltem Item Fixed Costs High-tensile strength nylon webt $ 6.00 Leash maker's salary [ monthly) $ 2,773.33 18 Polyesternylon ribbons 4.50 Depreciation on sewing machine 65.00 Buckles made of cast hardware 1.50 Rent 250.00 0 Price tags P 0.10 g Utilities and insurance 200.00 Scissors, thread, and cording 400.00 Loan payment 183.33 Salary to self 166.67 Total Variable Costs per L $ 12. 10 Total Fixed Costs $ 4,028.33 Harnesses Item ariable Cost/ltem Item Fixed Costs High-tensile strength nylon webt $ 6.00 Harness maker's salary 2.946.67 Polyesternylon ribbons 4.50 Depreciation on sewing machine 55.00 Buckles made of cast hardware 4.00 Rent 250.00 Price tags 0. 10 Utilities and insurance 200.00 Scissors, thread, and cording 400.00 Loan 183.33 Salary to self 166.67 Total Variable Costs per H $ 14.60 Total Fixed Costs $ 4,201.67