n 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 organizations 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 companys 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.

Submit a detailed report to your potential investors and other stakeholders to explain and defend your costing strategies and to share your businesss 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.

1. 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.
2. 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.
3. 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 businesss performance against the provided benchmarks.
   2. Income Statement: Share the income statement and logically interpret the businesss 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.

High-tensile strength nylon webbing $4.00 Collar maker's salary (monthly) $2,773.33

Polyester/nylon ribbons $3.00 Depreciation on sewing machines $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 Collar $9.10

Total Fixed Costs $4,028.33

Leashes Item

Variable Cost/Item

Item Fixed Costs

High-tensile strength nylon webbing $6.00

Leash maker's salary (monthly) $2,773.33

Polyester/nylon ribbons $4.50

Depreciation on sewing machines $55.00

Buckles made of cast hardware $1.50 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 Sales Price per Unit $28 $30 $35 Variable Cost per Unit $9.10 $12.10 $14.60 Contribution Margin $18.90 $17.90 $20.40

Beginning Work in Process Inventory $- Direct Materials:

Materials: Beginning 0 Add:

Purchases for month of January $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 $28,258 Deduct: Ending Work in Process Inventory 0 Cost of Goods Sold $28,258 Revenue: Collars $12,880 Leashes 10,800 Harnesses 14,000

Total Revenue: $37,680

Cost of goods sold 28,258 Gross profit $9,422

Expenses: General and administrative salaries $1,950 Office supplies 200 Other business equipment 150 Total Expenses $2,300.00

Net Income/Loss $7,122.00

"Budgeted (Standard) Hours/Qty" "Budgeted (Standard) Rate"

"Actual Hours/Qty" "Actual Rate" Labor 160 $16.00 180 $16.50

Based on 8 hrs /day at 20 days

Based on 9 hours per day at 20 days Materials 400 $9.10 460 $10.00

Based on 20 expect to be sold for actual sales of 23 collars per day for 20 days or 400 collars budgeted 20 days or 460 collars.

Variances for Collar Sales Variance "Favorable/ Unfavorable"

Direct Labor Time Variance (Actual Hours - Standard Hours) x Standard Rate $320.00

Unfavorable Direct Labor Rate Variance (Actual Rate - Standard Rate) x Actual Hours $90.00

Unfavorable Direct Materials Quantity/Efficiency Variance (Actual Quantity - Standard Quantity) x Standard Price $546.00

Unfavorable Direct Materials Price Variance (Actual Price - Standard Price) x Actual Quantity

Unfavorable