Cost Accounting

Overview
This project will require students to identify as business that they would like to own or manage (must be accounting related), develop a master budget, provide a budget justification / list of assumptions, and identify areas that they would focus on to ensure their success. The budget period must be one year.



Instructions:
Each team will select a business and then develop a master budget for the business. You will also provide a budget justification, which is a breakout that lists the assumptions and resources you used to come up with the numbers in your budget. A good resource to utilize is http://www.bizstats.com or another standard cost / benchmarking site.

Documentation Required:
All sources should be cited using APA formatting.

Report Requirements:
Each team will submit a report addressing the following:

◦Brief description of your business including: Desired Location, Hours of operation, Services provided, and description of space needs.
◦Master Budget for a one year period
■At minimum, must include:
■Sales
■Costs of Sales/ Costs of Good Sold
■Gross Profit
■Salary & Wages
■Benefits
■Rent
■Advertising/ Marketing
■Net Profit
■Budget Justification for the numbers provided in each line item
◦Reflection:
■Answer the following two questions:
■As the owner or manager of this business what areas would you keep an eye on to ensure peak performance?
■What type of analysis would you perform to ensure you are on the right track and how often would you conduct your analysis?
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