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 company’s 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 business’s performance to date. Your report can be in the form of a PowerPoint presentation. 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, you’ll 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.
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.
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.
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.
Statement of Cost of Goods Sold: Share the statement of cost of goods sold and logically interpret the business’s 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.
[Insert Company Name]
Investor Report
Prepared by [Your Name]
Introduction
• [Outline your company’s business and your vision for its future.]
2
Purpose
[Explain the purpose of this report and what you hope to convey
about the company and its financials.]
3
Methods and Approach
• [Explain some management accounting methods and how your
report and the data it represents adheres to industry standards and
the AICPA code of ethics.]
4
Financial Strategy
5
Costing System
• [Outline why the job order costing system works best for the
business.]
6
Selling Prices
• [List the selling price you chose for each product.]
7
Contribution Margin
• [Copy and paste your completed table from the “Contribution
Margin Analysis” tab of your Project Workbook.]
8
Target Profits
[Copy and paste the completed table from the “Break-Even Analysis”
tab of your Project Workbook.]
9
Financial Statements
10
Statement of Cost of Goods Sold
[Copy and paste your table from the “COGS” tab of your completed
Project Workbook.]
11
Income Statement
[Copy and paste your table from the “Income Statement” tab of your
completed Project Workbook.]
12
Variances
[Copy and paste your table from the completed “Variances” tab of
your Project Workbook.]
13
Significance of Variances
[Share a summary of your variance analysis. Were the variances
favorable or unfavorable?]
14
References
[Include any references cited in your paper in full APA format. Don’t
forget to include in-text citations as well.]
15
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Formatting
Title Page
Citation
Outline
