Accounting for Managers Assessment Task: Case Study
Case Study on Cost Volume Profit Analysis and Fortescue Metals Group (FMG).
The following documents are available on Blackboard:
- Fortescue Metals Group (FMG). 2015. Annual Report 2015.
- Fortescue Metals Group (FMG). 2016. Annual Report 2016.
- IBIS Iron Ore Mining in Australia (January 2017).
Based on the information provided on Blackboard and your own individual research, answer the following questions on cost volume profit analysis and the iron ore market:
1. Why is an uderstanding of cost behaviour important (e.g. fixed costs, variable costs, etc.).
2. Explain the meaning of 'contribution', and 'break-even analysis' and discuss their usefulness.
3. Break-even/CVP analysis seems to be a great tool. Does it have any weaknesses?
4. Analyse FMG 2015 and 2016 Annual Reports and discuss the factors that influence the miners' break-even costs.
5. Analyse the iron ore industry market and discuss which iron ore comapanies are at most risk.
Formatting Requirements:
Document: Your assignment must be typed using 12 font, 1.5 line spacing and 2.5 cm margins on all sides, with a maximum length of 1,500 words (excluding in-text references and bibliography). State the word count at the beginning of the assignment. All material over 1,500 words will be disregarded.
Referencing: You can refer to real world cases, recent news, book chapters, and research papers to support your arguments or analyses. Do NOT use another student's paper or a website as your reference. This report must be your own work.
Assignment Files -
https://www.dropbox.com/s/6z9vhonc2j6biqr/Assignment%20Files.rar?dl=0