The directors of Kias Pastaria, a UK incorporated restaurant operating in Sheffield are planning to expand into new markets and introduce new product varieties. You have been appointed as the financial manager of this company. The directors have approached you to understand the requirements and techniques for financial recording and reporting within the restaurant industry.

Prepare an information paper for senior managers within the company which explains the key financial statements comprising business accounts. It should identify the main components of each type of statement, and its role in the process of financial management. Reference should be made to the different techniques for recording financial information and any variations that may be made for different types of organisations. Your answers should include a brief introduction on the company and industry and should be based on law and regulations in the UK.

Describe the use of financial statements in the both financial accounting and management accounting, clearly distinguishing between these two functions. Indicate the significance of each function to the effective operation of a business. Discuss the information needs of various stakeholders of the company. Explain the budgetary control process and its importance in financial planning.

You are required to carry out a costing exercise for the new bakery product. Begin by defining the different classification of costs, with appropriate examples related to the production of the new product. Your report should include a detailed evaluation of the different costing methods for pricing purposes.

Using the following information, determine what would be the minimum number of units to be made each month:

Selling price per unit 30

Variable costs per unit 20

Fixed costs per month 70,000

Budgeted sales 7,500 units

Required ( the answer should be computerized )

Calculate the new breakeven selling price and the margin of safety. You are also required to calculate the level of sales required to generate a profit of profit of 20,000. As a consequence, propose a selling price to the company directors for their next meeting, providing detailed reasons to justify your proposal.