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 Directions 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 If you choose to do a PowerPoint presentation, youll 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 businesss performance against the provided benchmarks Income Statement Share the income statement and logically interpret the businesss 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 min 1 2 Milestone Three Variance Analysis 3 4 5 Data for Variance Analysis Budgeted (Standard) Hours Qty Actual Budgeted (Standard) Rate Actual Hours Qty Rate 8 Labor 160 14,67 180 $ 16 50 6,188$ 3 23 10 11 Materials 12 13 1,600 $ 10 00 u B6 14 15 Variances for Collar Sales Favorable Unfavorable Variance $ 293 34 Unfavorable 16 17 Direct Labor Time Variance 18 (Actual Hours Standard Hours) x Standard Rate 19 20 Direct Labor Rate Variance 21 (Actual Rate Standard Rate) x Actual Hours 22 23 Direct Materials Quantity Efficiency Variance 24 (Actual Quantity Standard Quantity) x Standard Price $ 329 94 Unfavorable (14,828 42) Unfavorable 25 26 Direct Materials Price Variance (Actual Price Standard Price) Actual Quantity 27 S $ 10,828 80 Unfavorable 28 29 4 $ 13,200 12,320 12,500 1 2 Milestone Three Income Statement 3 4 5 Revenue 6 Collars 7 Leashes 8 Harnesses 9 10 Total Revenue 11 Cost of goods sold 12 Gross profit 13 14 Expenses 15 General and administrative salaries Office supplies Other business equipment 18 19 Total Expenses $ 38,020 (28,258) 9,762 $ $ 16 1,950 200 150 17 $ 2,300 00 20 $ 7,461 67 21 Net Income Loss 22 23

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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

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.

Directions

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. If you choose to do a PowerPoint presentation, youll 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 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 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.

min 1 2 Milestone Three - Variance Analysis 3 4 5 Data for Variance Analysis: Budgeted (Standard) Hours/Qty Actual Budgeted (Standard) Rate Actual Hours/Qty Rate 8 Labor 160 14,67 180 $ 16.50 6,188$ 3.23 10 11 Materials 12 13 1,600 $ 10.00 u B6 14 15 Variances for Collar Sales Favorable/ Unfavorable Variance $ 293.34 Unfavorable 16 17 Direct Labor Time Variance 18 (Actual Hours - Standard Hours) x Standard Rate 19 20 Direct Labor Rate Variance 21 (Actual Rate - Standard Rate) x Actual Hours 22 23 Direct Materials Quantity/Efficiency Variance 24 (Actual Quantity - Standard Quantity) x Standard Price $ 329.94 Unfavorable (14,828.42) Unfavorable 25 26 Direct Materials Price Variance (Actual Price - Standard Price) Actual Quantity 27 S $ 10,828.80 Unfavorable 28 29 4 $ 13,200 12,320 12,500 1 2 Milestone Three - Income Statement 3 4 5 Revenue: 6 Collars 7 Leashes 8 Harnesses 9 10 Total Revenue: 11 Cost of goods sold 12 Gross profit 13 14 Expenses: 15 General and administrative salaries Office supplies Other business equipment 18 19 Total Expenses $ 38,020 (28,258) 9,762 $ $ 16 1,950 200 150 17 $ 2,300.00 20 $ 7,461.67 21 Net Income/Loss 22 23