ACC5200 Management Accounting
Your group of four students
are planning to start up your own business venture, marketing a single
product or service produced or offered using some type of materials
& labour; however as you have £60,000 in cash personally as a group
to use towards this venture, you will need to prepare a summary business
plan and supporting budgets in order to raise the additional finance
required to meet your budgeted operations. You may assume that you can
apply for the funding needed from a named bank or other lender at the
prevailing market rate.
A major task involves
drawing up the following budgets to resource your proposed business
activity and to persuade lenders to contribute financially to your
business:-
- Table of Assumptions
** Any and all assumptions made in estimating figures must be researched,
referenced, reasonable & clearly stated in your table of assumptions **
- Budgeted detailed Contribution Statement; Total contribution & C/S ratio
- Calculations showing the Break-Even Point in units, £ of sales & percentage
- Calculations showing the Margin of Safety in units, £ of sales & percentage
- Capital Expenditure Budget detailing proposed asset acquisitions
- Overheads Budget detailing any and all indirect costs
- Sales Budget (principal budget factor)
- Purchases Budget
- Inventory Budget
- Production Budget
- Direct Labour Budget
- Cash Budget
** N.B. Imperative that your budgets 6.-12. include TOTAL column for 12-months**
- Budgeted Annual Income Statement
- Budgeted Annual Balance Sheet
Other Instructions
** You must use Excel spreadsheets in Appendix with formulae correctly
applied for each of your budgets 1. - 14. above
