Final Project Overview-
The final project for this course is the creation of a quantitative analysis that includes an Excel spreadsheet, accompanied by a memo to management.
Accountants provide management with the logistics of the business that are crucial for daily operations and a company's overall success. In any business, it is of the utmost importance to be aware of all finances and internal processes. Cost accountants focus solely on the internal processes of a business and are tasked with eliminating any unnecessary costs in order to maximize profits.
In this assessment, you have been tasked with conducting a quantitative analysis that looks into the internal processes of a company. Based on your analysis, you will formulate recommendations to management that aim to improve internal processes and increase profits for the company.
The project is divided into three milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Three, Five, and Seven. Your final submission will occur in Module Nine.
In this assignment, you will demonstrate your mastery of the following course outcomes:
-Apply cost-volume-profit (CVP) analysis based on cost classification for planning and control of internal accounting processes within an organization
-Assess cost and revenue allocation methods for providing relevant information to decision makers
-Select the optimal inventory management method for meeting the needs of an organization
-Evaluate cost accounting performance and planning tools for their impact on business operations
Prompt
Conduct a quantitative analysis of a company's internal processes using the Hampshire Company Case Study document. Your analysis will consist of completing the Hampshire Company Spreadsheet and will be accompanied by a memo to management.
Specifically, the following critical elements must be addressed:
I. Cost-Volume-Profit Analysis - Cost-volume-profit (CVP) analysis is a useful tool for informing short-term economic planning within an organization. In this section, a CVP analysis will be conducted and used to inform business decisions and recommendations.
A. Perform a CVP analysis based on cost classifications.
B. Explain how a CVP analysis can assist management with short-term economic planning. Support your response with examples from your CVP analysis.
C. Accurately compute the break-even quantity and break-even revenue.
D. Determine whether the company is breaking even. What are the CVP analysis implications on planning?
II. Inventory Management
Inventory management serves to minimize the cost to maintain inventory and maximize returns. In this section, the company's financial data will be reviewed in order to determine the optimal inventory management system.
A. Determine an optimal cost allocation method based on the relevant costs.
B. Describe how this method should be used by decision makers to fulfill their responsibilities. Support your response with examples.
C. What are the pros and cons of implementing the just-in-time (JIT) inventory system? Do the pros outweigh the cons for this company?
D. Explain how the just-in-time (JIT) inventory system can benefit this organization. Defend your response.
E. Identify the inventory management method you recommend, and explain why this method will benefit the company.
III. Benchmarking
In this section, benchmarking will be reviewed. Benchmarking can be implemented in various ways depending on a company's circumstances. Your company has decided to implement benchmarking and would like you to research and recommend the most effective approach.
A. What is the advantage to benchmarking in terms of improving companies' performance? Support your response.
B. Identify possible approaches to benchmarking. Describe each.
C. Which benchmarking method should management adopt and why?
IV. Alternative Costing Method
There are various costing methods available for companies to implement. As a company grows, it may become beneficial to consider an alternate costing method.
A. Identify an alternative costing method that could benefit this company, and describe the main characteristics of that method.
B. What should a company look for when trying to determine whether they should adopt such a system?
C. Should the company adopt this alternative costing method? Defend your response.
V. Memo to Management
Your memo to management should serve as a summary of your quantitative analysis, reviewing the key points and recommendations that you feel management should be aware of.
A. Describe the overall findings of your analysis, including key elements that management should be aware of.
B. Make a recommendation to management based on your cost accounting analysis that will enhance business planning.
C. Recommend a performance tool to management based on your cost accounting analysis that will improve business operations.