Module 5 Assignment 1: Required Assignment 2—Cost-Volume-Profit Analysis
In this assignment, you will apply the concepts of CVP analysis learned in your Module 4. You will use CVP analysis to analyze a project of your choice to enable a prospective investor to decide if your project is worth investing in.
Select a project, whether from work, an avocation, an entrepreneurial idea of your own, or your child’s lemonade stand on the corner. Identify the various costs required to execute the project and consider the revenue the project will generate. In a Power Point format, create a basic pro forma statement necessary to convince someone to provide the start-up costs of the project.
Assignment Tasks: To create a pro forma statement:
- Identify and list the various costs—fixed and variable, direct and indirect—required to execute the project.
- Calculate the break-even point for the project and the expected financial returns. Click here to access the CVP template to calculate the break-even point. Make sure you show your Excel formulas or provide calculations so your instructor can review your work. Save your final calculations as M4_A1_Cost-Volume-Profit_Template_Lastname_Firstname.xls. The completed template must accompany the PPT.
- Include a brief discussion of key points of any intangible benefits or costs associated with the project.
- Supplement your pro forma statement with sufficient background information to enable a prospective investor to decide if your company is worth investing in.
- The detail must have enough historic data to give an investor an understanding of trends.
- You should also have sufficient written background so that a potential investor understands the business. Use the speaker notes area of your presentation to add background information that you would communicate verbally in a presentation. This should be 1 to 2 pages in length.
Support your predictions and suggestions with scholarly resources and empirical evidence. Use APA format to cite your sources. Your presentation should include sections addressing the topics listed.
Develop a 10–12 slide Microsoft PowerPoint presentation. Include the required information concisely highlighting only the key points necessary for the purpose of this presentation, which is to convince a prospective investor to decide if your project is worth investing in. Support your predictions and suggestions with scholarly resources and empirical evidence. Use APA format to cite your sources.
Your presentation should include sections addressing the topics listed and presented in bulleted format, avoiding long paragraphs of content. Include the CVP completed template sheet with the PPT. Submit the final presentation to the M5: Assignment 1 Dropbox.
Module 5 Assignment 2: Discussion—Predicting and Developing a Long-Term Growth Strategy
To develop a strategic plan, as a non-accounting manager, you need to analyze and link management accounting data and performance information with business strategies.
You also need to extend the scope of management accounting beyond the organization. For this perspective, you will need to focus on variables that are external to the firm, such as variables relating to markets, customers, and competitors.
This external focus will help you develop a sustainable competitive advantage, which is the primary element of your long-term growth strategy.
In this assignment, you will analyze the factors that affect the long-term growth strategy of a company.
Tasks: Respond to the following:
- What can you learn from the financial statements of competitors that determine the relative cost position of your company?
- What are some of the ways in which you can secure a sustainable cost advantage over the competition?
- How does maintaining a strong understanding of relative costs help you maintain the competitive advantage?
- How do you use cost structure to differentiate products? Do you think product differentiation is a successful growth strategy? Why or why not?
- What is the usefulness of conducting a customer profitability analysis?
Write your initial response in 300–500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation