3000 words MBA project
MBA610 Managerial Accounting Instructions on Final Project
Facilitated By: Serena Xie
General Format
APA format
https:// owl.purdue.edu/owl/research_and_citation/apa_style/apa_formatting_and_style_guide/general_format.html
At least one quality reference
Suggested length: 10-15 pages
Major Paper Sections
Four major sections
Title Page
Abstract
Main Body
References
Main Body
Seven sections
1. Introduction
2. Startup Cost Analysis
3. Cost/Benefit Analysis
4. Breakeven Analysis
5. Cost-Volume-Profit (CVP) Analysis
6. Pro-Forma Financial Statements
7. Discussion
1. Introduction
1-2 pages
Must include
A basic description of the business and how it will operate
Why you think the business will be successful
Basic information about the business’s market, location, and competition
How your financial decisions will affect the business
2. Startup Cost Analysis
A basic analysis that includes costs you need to consider based on the business you choose
A detailed list of all estimated costs it will take to start the business with a total amount
Cost of property, buildings
Cost of machinery, equipment
Planning costs, legal fees, consulting fees
One year of operational costs (e.g. salaries, rent, depreciation, utilities, product costs, etc.)
3. Cost/Benefit Analysis
Explain why the business should be profitable by weighing the total expected cost (disadvantages) against the total expected benefits (advantages) and by how much
Conduct a detailed SWOT analysis
Strengths
Weaknesses
Opportunities
Threats
4. Breakeven Analysis
Classify your operational costs into variable costs, fixed costs and mixed costs
Determine variable cost per unit and total fixed costs
Determine how much revenue (units that need to be sold) is needed to cover these costs
| Fixed costs | Variable costs | ||
| Rent | $? | Direct materials – chicken | $? |
| ? | ? | ||
| ? | ? | ||
| Total | $? | Total | $? |
4. Breakeven Analysis
Prepare a CVP chart showing your breakeven analysis
Example
5. Cost-Volume-Profit (CVP) Analysis
Identify at least 2 outside factors that may influence your breakeven point
Changes of location (Hint: changes in rent, affect your total fixed costs)
Changes in competition (Hint: changes in selling price per unit)
Changes in outside market factors (e.g. pay more for direct materials due to inflation)
Calculate your revised breakeven point
Graphs for CVP analysis
6. Pro-Forma Financial Statements
Create a
Pro-forma income statement
Pro-forma statement of cash flows
Pro-forma balance sheet
Project each of these statements for 3 years (all three years can be listed on one statement)
Pro-forma = budgeted
2021
2022
2023
7. Discussion
Whether the business will be as profitable as you first expected (in the introductory section)
Briefly explain why (or why not) and what can be done to improve the possible outcome
If not profitable, explain why and solutions to improve
If profitable as expected, discuss how the possible outcome can be further improved
e.g. unexpected increase in rent
e.g. relocation