BFA312: Management Accounting Case Study Assignment Help
Question
BFA312: This assignment for the University of Tasmania requires the student to reflect on a case study provided to them and apply the learnings related to management and behavioural accounting to curate a report for the project provided in the case. It urges the students to imagine themselves in the role of an accountant and analyze the feasibility of the project mentioned in the case study.
Solution
The case study revolves around two graduates who plan to start a plant-based pizza business for which they have conducted a preliminary survey of the market and have found the results to be in favour. The student is required to imagine themselves in the role of an accountant and conduct management-related calculations to check if their business plan is feasible or not.
The solution incorporates three parts: A spreadsheet, a report, and a recorded video.
Spreadsheet
The spreadsheet aims to provide a calculation of the costs and budgets related to the project. Our experts have used cost accounting principles to calculate the needed accounting costs for the business. We have provided a snippet of the spreadsheet below.
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Report
The assessment also requires the students to create a report based on the data findings revealed through the analysis in the spreadsheet. Our experts have presented the report in a well-structured manner. The report is divided into various sections including an executive summary, an Introduction, a predicted annual growth rate, Variable expenses, Two methods of accounting, a Break-even analysis, a calculation of the cash budget for the next 3 years, and a calculation of the Net Present value of the business followed by a brief conclusion.
Executive Summary
The solution begins by providing an executive summary of the report. Our experts have highlighted all the significant findings of the report and summarised the results in a brief yet explanatory manner.
Market research is essential for pitching a new product and understanding the people’s sentiments. The report aims to introspect the potential of the new business that is plant-based pizza. The report initiates with an introduction followed by different projections in terms of the business. From the analysis, James and Harry must open a pizza outlet in Australia Mainland initial to a larger population and scale population for the business’s success.
These are only 50% of the findings. To know more, reach out to us through WhatsApp at +447956859420.
Introduction
The next section includes the introduction to the report. The experts have written the introduction in a manner that provides an accurate explanation of all the significant terms in the report in addition to outlining the purpose and the structure of the report.
James and Harry recently graduated and decided to open a plant-based pizza in Australia with a capital contribution of $25,000 each. The idea of plant-based pizza has come based on the health-conscious, healthy ingredients and love for pizza. Which were missing in the traditional pizza they had consumed during their college lives. Plant-based pizza means that all the ingredients will be organically grown; the cheese used shall not be the normal cheese but shall be made of dollops of cashew cheese followed by all the veggies & spices, which shall also be organically grown. Furthermore, the baking of the pizza will not be done on the conventional micro oven but on a wood-fired oven which will provide the pizza with a special aroma and taste.
This is only a snippet of the introduction written by our expert. Call us at +61871501720 to read more.
Predicted annual growth rate
After the introduction, the report predicts the annual growth rate of the business. Our experts have prepared a data sheet for the sales budget for the next three years to support this answer.
Based on the research on the Pizza industry, its demands, and the taste of the customer in both Tasmania & Australia’s mainland cities, it has been observed that the population of Tasmania is around 5.5 lacs as per latest census report and population of Australia mainland is around 25 lacs.
The selling price of plant-based pizza is kept at $12 per pizza which is at a slight lower price based on the other competitors.
Here, we have provided a sales budget for only year 1. If you need the complete budget, please mail us at onlineassignmentservices1@gmail.com.
Variable expenses
The next section provides a detailed variable expenses budget and fixed expenses budget for the first three years of the business.
Below is the estimated variable cost expense budget and fixed cost expense for pizza business in next 3 years.
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Two methods of accounting
The third section urges the student to elaborate on the two methods of accounting and examine how the application of manufacturing overheads can change the net income of any business.
One method is absorption method: In this method the total manufacturing cost is divided by the unit produced and one absorption rate is calculated to account the manufacturing overhead in each unit cost
The other method is ABC costing: In this method all the manufacturing overhead are identified with their respective cost driver and cost/activity rate is calculated and manufacturing overhead is accounted in each unit based on the manufacturing activity used. Thus in this method the manufacturing activity which is used only that related cost is added to the cost of the product and not unlikely absorption cost in which one rate is used and manufacturing cost is charged irrespective of the manufacturing activity used (Vanderbeck 2013).
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Break-even analysis
Next, a break-even point analysis is provided for the business. Through elaborative market research, our experts have detailed the number of units that will need to be sold to achieve the target profit.
Calculation of Break-even analysis of the pizza business in Australia mainland for next 3 years.
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Calculation of cash budget for next 3 years
In the following section, our experts have provided a cash flow budget for the business through the data analyzed with the help of the spreadsheet. This section will also evaluate the cash flow which will be needed to launch the project.
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Calculation of the Net Present value of the business
The next section provides a calculation of the net current value of the business. The experts have calculated this through extensive and accurate accounting calculations for the project.
Since NPV is positive by _________, both James and Harry should invest in the business.
Calculation of Payback period
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Conclusion
Lastly, a brief conclusion is provided for the study which points out all the significant findings of the study. Our experts have also suggested relevant comments and recommendations based on the calculations.
The overall discussion indicates that the business is potential and hence it would be beneficial for James and Hary in the long run.
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