Scenario

You are a management accountant at Aspen Sporting Goods, Inc., a start$-$up in the Pacific Northwest. Your supervisor, the CEO, would like to develop a system for analyzing the financial and operational results of performance. Your supervisor would like information regarding break$-$even analysis, cost types and cost drivers in the organization, and other elements that affect the organization$$s profitability. Your supervisor has asked you to create a presentation on the factors impacting the organization$$s profitability trends.

This milestone will help you with the project, where you will be required to develop cost reports within an organization.

Directions

Using the template in the What to Submit section, create a PowerPoint presentation of a cost report analysis based on the break$-$even analysis.

Specifically, you must address the following rubric criteria:

Explain the parts of a break$-$even analysis.

Compare the types of costs used to develop a cost report in the organization. Include the following in your response:

Fixed

Variable

Step

Mixed

Describe the importance of cost drivers as part of a sensitivity analysis in the organization.

Analyze the benefits of job$-$order costing versus process costing in the organization.

Differentiate the preparation of a break$-$even analysis from that of a master budget. Consider the following:

The parts of a break$-$even analysis

The parts of a master budget

Explain the operating cycle of the organization in financial terms.

Determine the profitability trends in the organization$$s cost reports.

Explain the difference between cost and revenue within the organization$$s sensitivity analysis.

Recommend a financial goal for a department in the organization. Consider the following departments to guide your response:

Sales

Purchasing$/$procurement

Marketing