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Scenario Your business has been open for a month, and you have prepared an income statement and completed a variance analysis on the data. Now you will meet with investors and a few other internal stakeholders to share your company's progress over the past month and how it has performed with respect to your cost and budget projections. The investors would like to see the thought process behind your financial strategy and how your company has performed in its first month. They have therefore asked you to present a report that includes the costing and income data from your Project Workbook. Directions Submit a detailed report to your potential investors and other stakeholders to explain and defend your costing strategies and to share your business's performance to date. Your report can be in the form of a PowerPoint presentation or a Word document (based on the templates provided in the What to Submit section). In either format, be sure to effectively communicate with your stakeholders by breaking down concepts and using investorfriendly language to build their trust and confidence. If you choose to do a PowerPoint notes for each slide. 1. Introduction: Provide a short overview of your company and the purpose of this report. A. Business Overview: Name your company and describe its business and your vision for its future. B. Purpose of the Report: Explain the purpose of the report and describe why the information is important. C. Methods and Approach: Explain the management accounting methods you used for generating the information that you are about to share in terms of your adherence to industry standards and the American Institute of Certified Public Accountants (AICPA) code of ethics. 2. Financial Strategy: Review your original business plan and costing strategies. A. Costing System: Justify the use of job order costing for this business. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense. B. Selling Prices: Share and explain the selling prices you established for each of your products. Be sure to reference your cost-volume-profit analysis in your defense. C. Contribution Margin: Share and explain your contribution margin per unit. Be sure to reference your costvolume-profit analysis in your defense. D. Target Profits: Identify your breakeven points for achieving different target profits. Then explain the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense. 3. Financial Statements: Using the information in the Milestone Two Market Research Data Appendix, assess your financial performance to date. A. Statement of Cost of Goods Sold: Share the statement of cost of goods sold and logically interpret the business's performance against the provided benchmarks. B. Income Statement: Share the income statement and logically C. Variances: Illustrate all variances for the direct labor time and the materials price. D. Significance of Variances: Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning. What to Submit To complete this project, you must submit the following: Investor Report PowerPoint Template Use this template to submit a PowerPoint presentation with speaker notes. Sources should be cited according to APA style. OR Investor Report Word Template Use this template to submit an 8- to 10-page Word document. Sources should be cited according to APA style. [Company Name] 1 [Note: To complete this template, replace the bracketed text with your own content. Remove this note before you submit your paper.] Investor Report for [Company Name] [Your Name] Southern New Hampshire University Report for [Company Name] Introduction [Outline your company's business and your vision for its future.] [Introduce the company and its business. What is your vision for the future of the business? What do you hope to achieve? Where do you see the company in five years or ten?] Purpose [Explain the purpose of the report and what you hope to convey about the company and its financials.] [What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important.] Methods and Approach [Explain some management accounting methods you used to determine your costing strategy, evaluate your financial information, etc., and explain how these methods support the mission and vision of the company.] [Briefly describe how your report and the data it represents adheres to industry standards and the AICPA code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your decision-making process has been ethical?] Financial Strategy [In this section, review your original business plan and costing strategies. Remove this note before you submit your paper.] Costing System [Outline why the job order costing system works best for your business. Explain in detail the use of job order costing for this business. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense.] [List the selling price you chose for each product.] [Explain and defend the selling prices you established for each product. Why did you choose these prices? Be sure to reference your cost-volume-profit analysis in your defense] Contribution Margin [Copy and paste your completed table from the "Contribution Margin Analysis" tab of your Project Workbook.] [Share and explain your contribution margin per unit. How did you arrive at these numbers? Be sure to reference your costvolume-profit analysis in your defense.] Target Profits [Copy and paste the completed table from the "Break-Even Analysis" tab of your Project Workbook.] [Specify the break-even points you determined for achieving different target profit levels. Then, explain and defend the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.] Financial Statements [This section is designed to have you assess your financial performance to date. Remove this note before you submit your paper.] Statement of Cost of Goods Sold [Copy and paste your table from the "COGS" tab of your completed Project Workbook.] [Compare the actual cost of goods sold over the last month and evaluate the company's performance against the budgeted benchmarks. Are the numbers close to what you expected? Interpret the performance and explain what happened.] Income Statement [Copy and paste your table from the "Income Statement" tab of your completed Project Workbook.] [Based on your income statement, logically interpret the business's performance against the provided benchmarks. Did the company do as well as expected? Explain what happened.] Variances [Copy and paste your table from the completed "Variances" tab of your Project Workbook.] [Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?] Significance of Variances [Share a summary of your variance analysis. Were the variances favorable or unfavorable?] [Evaluate the significance of the variances. Are the variances favorable or unfavorable? What does it mean? Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter.] References [Include any references cited in your paper in full APA format. Project Rubric Introduction: Business Overview Exemplary (100\%) Exceeds proficiency in an exceptionally clear. insightful, sophisticated, or creative manner Proficient (85\%) Identifies the name of the company and describes its business and vision Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include describing the company's business or its vision Not Evident (0\%) Does not attempt criterion Value 5 Introduction: Purpose of the Report Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Explains the purpose of the presentation and describes why the accounting information is important Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include describing the importance of the accounting information Introduction: Methods and Approach Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85%) Explains management accounting methods for generating information, and explains them in terms of adherence to industry standards and the AICPA code of ethics Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include providing adequate details regarding adherence to the industry standards or AICPA code of ethics Not Evident (0%) Does not attempt criterion Value 10 Financial Strategy: Costing System Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Justifies the use of job order costing for this business; compares and contrasts the various costing systems as part of the defense Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include comparing various costing systems to defend the use of job order costing Financial Strategy: Target Profits Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Identifies break-even points for achieving target profits; explains selected target profits for each area of the business; references the cost-volumeprofit analysis Needs Improvement (55%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adequately describing the selected target profits; using the cost-volume-profit analysis Not Evident (0%) Does not attempt criterion Value 10 Financial Statements: Statement of Cost of Goods Sold Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85%) Shares the statement of cost of goods sold and logically interprets the business's performance against the provided benchmarks Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly interpreting the business's performance based on the actual cost of goods sold Financial Statements: Income Statement Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Shares the income statement and logically interpret the business's performance against the provided benchmarks Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly and logically interpreting the income statement Not Evident (0\%) Does not attempt criterion Value 10 Financial Statements: Variances Exemplary (100\%) Exceeds proficiency in an exceptionally clear. insightful, sophisticated, or creative manner Proficient (85\%) Identifies all variances for the direct labor time and the materials price Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include identifying and sharing all variances Not Evident (0\%) Does not attempt criterion Value Financial Statements: Significance of Variances Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Evaluates the significance of the variances in terms of the potential to impact future budgeting decisions and planning correctly Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly evaluating the significance and explaining how it impacts future planning Not Evident (0\%) Does not attempt criterion Value 10 Articulation of Response Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Clearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purpose Needs Improvement (55\%) Shows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, negatively impacting readability Not Evident (0\%) Submission has critical errors in grammar, Milestone One - Variable and Fixed Casts Cost Classification Variable and Fixed Costs Contributic Milestone Two - Contribution Margin Analysis Sales Price per Unit Variable Cost per Unit Contribution Margin COLLARS 209.1 LEASHES HARNESSES Milestone Two - Break-Even Analvsis Milestone Three - Statement of Cost of Goods Sold Beginning Work in Process Inventory 0 Direct Materials: Materials: Beginning Add: Purchases for month of January Materials available for use Deduct: Ending materials Materials Used Direct Labor Overhead 16,0008,493.333,765 Total Costs 28,258.33 Deduct: Ending Work in Process Inventory 0 Cost of Goods Sold 28,258.33 Milestone Three - Income Statement Revenue: Collars Leashes Harnesses Total Revenue: Cost of goods sold Gross profit Expenses: General and administrative salaries Office supplies Other business equipment Total Expenses Net Income/Loss 12,320 12,500 2001501,950 2,3007,461.67 Milestone Three - Variance Analysis Scenario Your business has been open for a month, and you have prepared an income statement and completed a variance analysis on the data. Now you will meet with investors and a few other internal stakeholders to share your company's progress over the past month and how it has performed with respect to your cost and budget projections. The investors would like to see the thought process behind your financial strategy and how your company has performed in its first month. They have therefore asked you to present a report that includes the costing and income data from your Project Workbook. Directions Submit a detailed report to your potential investors and other stakeholders to explain and defend your costing strategies and to share your business's performance to date. Your report can be in the form of a PowerPoint presentation or a Word document (based on the templates provided in the What to Submit section). In either format, be sure to effectively communicate with your stakeholders by breaking down concepts and using investorfriendly language to build their trust and confidence. If you choose to do a PowerPoint notes for each slide. 1. Introduction: Provide a short overview of your company and the purpose of this report. A. Business Overview: Name your company and describe its business and your vision for its future. B. Purpose of the Report: Explain the purpose of the report and describe why the information is important. C. Methods and Approach: Explain the management accounting methods you used for generating the information that you are about to share in terms of your adherence to industry standards and the American Institute of Certified Public Accountants (AICPA) code of ethics. 2. Financial Strategy: Review your original business plan and costing strategies. A. Costing System: Justify the use of job order costing for this business. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense. B. Selling Prices: Share and explain the selling prices you established for each of your products. Be sure to reference your cost-volume-profit analysis in your defense. C. Contribution Margin: Share and explain your contribution margin per unit. Be sure to reference your costvolume-profit analysis in your defense. D. Target Profits: Identify your breakeven points for achieving different target profits. Then explain the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense. 3. Financial Statements: Using the information in the Milestone Two Market Research Data Appendix, assess your financial performance to date. A. Statement of Cost of Goods Sold: Share the statement of cost of goods sold and logically interpret the business's performance against the provided benchmarks. B. Income Statement: Share the income statement and logically C. Variances: Illustrate all variances for the direct labor time and the materials price. D. Significance of Variances: Evaluate the significance of the variances in terms of the potential to impact future budgeting decisions and planning. What to Submit To complete this project, you must submit the following: Investor Report PowerPoint Template Use this template to submit a PowerPoint presentation with speaker notes. Sources should be cited according to APA style. OR Investor Report Word Template Use this template to submit an 8- to 10-page Word document. Sources should be cited according to APA style. [Company Name] 1 [Note: To complete this template, replace the bracketed text with your own content. Remove this note before you submit your paper.] Investor Report for [Company Name] [Your Name] Southern New Hampshire University Report for [Company Name] Introduction [Outline your company's business and your vision for its future.] [Introduce the company and its business. What is your vision for the future of the business? What do you hope to achieve? Where do you see the company in five years or ten?] Purpose [Explain the purpose of the report and what you hope to convey about the company and its financials.] [What do you plan to communicate, and why should your investors pay attention? In other words, try to persuade your investors that the accounting information you are about to share is important.] Methods and Approach [Explain some management accounting methods you used to determine your costing strategy, evaluate your financial information, etc., and explain how these methods support the mission and vision of the company.] [Briefly describe how your report and the data it represents adheres to industry standards and the AICPA code of ethics. In other words, why should your investors trust that you are delivering accurate financial data and that your decision-making process has been ethical?] Financial Strategy [In this section, review your original business plan and costing strategies. Remove this note before you submit your paper.] Costing System [Outline why the job order costing system works best for your business. Explain in detail the use of job order costing for this business. Be sure to compare and contrast the various costing systems you learned about in this course as part of your defense.] [List the selling price you chose for each product.] [Explain and defend the selling prices you established for each product. Why did you choose these prices? Be sure to reference your cost-volume-profit analysis in your defense] Contribution Margin [Copy and paste your completed table from the "Contribution Margin Analysis" tab of your Project Workbook.] [Share and explain your contribution margin per unit. How did you arrive at these numbers? Be sure to reference your costvolume-profit analysis in your defense.] Target Profits [Copy and paste the completed table from the "Break-Even Analysis" tab of your Project Workbook.] [Specify the break-even points you determined for achieving different target profit levels. Then, explain and defend the target profits you selected for each area of your business. Be sure to reference your cost-volume-profit analysis in your defense.] Financial Statements [This section is designed to have you assess your financial performance to date. Remove this note before you submit your paper.] Statement of Cost of Goods Sold [Copy and paste your table from the "COGS" tab of your completed Project Workbook.] [Compare the actual cost of goods sold over the last month and evaluate the company's performance against the budgeted benchmarks. Are the numbers close to what you expected? Interpret the performance and explain what happened.] Income Statement [Copy and paste your table from the "Income Statement" tab of your completed Project Workbook.] [Based on your income statement, logically interpret the business's performance against the provided benchmarks. Did the company do as well as expected? Explain what happened.] Variances [Copy and paste your table from the completed "Variances" tab of your Project Workbook.] [Illustrate the variances observed between the planned and actual values for the direct labor time and the direct materials price for collars. What changed?] Significance of Variances [Share a summary of your variance analysis. Were the variances favorable or unfavorable?] [Evaluate the significance of the variances. Are the variances favorable or unfavorable? What does it mean? Explain whether and how your evaluation will affect your budgeting and planning decisions for the next month or quarter.] References [Include any references cited in your paper in full APA format. Project Rubric Introduction: Business Overview Exemplary (100\%) Exceeds proficiency in an exceptionally clear. insightful, sophisticated, or creative manner Proficient (85\%) Identifies the name of the company and describes its business and vision Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include describing the company's business or its vision Not Evident (0\%) Does not attempt criterion Value 5 Introduction: Purpose of the Report Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Explains the purpose of the presentation and describes why the accounting information is important Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include describing the importance of the accounting information Introduction: Methods and Approach Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85%) Explains management accounting methods for generating information, and explains them in terms of adherence to industry standards and the AICPA code of ethics Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include providing adequate details regarding adherence to the industry standards or AICPA code of ethics Not Evident (0%) Does not attempt criterion Value 10 Financial Strategy: Costing System Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Justifies the use of job order costing for this business; compares and contrasts the various costing systems as part of the defense Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include comparing various costing systems to defend the use of job order costing Financial Strategy: Target Profits Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Identifies break-even points for achieving target profits; explains selected target profits for each area of the business; references the cost-volumeprofit analysis Needs Improvement (55%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include adequately describing the selected target profits; using the cost-volume-profit analysis Not Evident (0%) Does not attempt criterion Value 10 Financial Statements: Statement of Cost of Goods Sold Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85%) Shares the statement of cost of goods sold and logically interprets the business's performance against the provided benchmarks Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly interpreting the business's performance based on the actual cost of goods sold Financial Statements: Income Statement Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Shares the income statement and logically interpret the business's performance against the provided benchmarks Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly and logically interpreting the income statement Not Evident (0\%) Does not attempt criterion Value 10 Financial Statements: Variances Exemplary (100\%) Exceeds proficiency in an exceptionally clear. insightful, sophisticated, or creative manner Proficient (85\%) Identifies all variances for the direct labor time and the materials price Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include identifying and sharing all variances Not Evident (0\%) Does not attempt criterion Value Financial Statements: Significance of Variances Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Evaluates the significance of the variances in terms of the potential to impact future budgeting decisions and planning correctly Needs Improvement (55\%) Shows progress toward proficiency, but with errors or omissions; areas for improvement may include correctly evaluating the significance and explaining how it impacts future planning Not Evident (0\%) Does not attempt criterion Value 10 Articulation of Response Exemplary (100\%) Exceeds proficiency in an exceptionally clear, insightful, sophisticated, or creative manner Proficient (85\%) Clearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purpose Needs Improvement (55\%) Shows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, negatively impacting readability Not Evident (0\%) Submission has critical errors in grammar, Milestone One - Variable and Fixed Casts Cost Classification Variable and Fixed Costs Contributic Milestone Two - Contribution Margin Analysis Sales Price per Unit Variable Cost per Unit Contribution Margin COLLARS 209.1 LEASHES HARNESSES Milestone Two - Break-Even Analvsis Milestone Three - Statement of Cost of Goods Sold Beginning Work in Process Inventory 0 Direct Materials: Materials: Beginning Add: Purchases for month of January Materials available for use Deduct: Ending materials Materials Used Direct Labor Overhead 16,0008,493.333,765 Total Costs 28,258.33 Deduct: Ending Work in Process Inventory 0 Cost of Goods Sold 28,258.33 Milestone Three - Income Statement Revenue: Collars Leashes Harnesses Total Revenue: Cost of goods sold Gross profit Expenses: General and administrative salaries Office supplies Other business equipment Total Expenses Net Income/Loss 12,320 12,500 2001501,950 2,3007,461.67 Milestone Three - Variance Analysis