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Question(s) / Instruction(s):

ACC5200 Management Accounting 

 Your group of four students are planning to start up your own business venture, marketing a single product or service produced or offered using some type of materials & labour; however as you have £60,000 in cash personally as a group to use towards this venture, you will need to prepare a summary business plan and supporting budgets in order to raise the additional finance required to meet your budgeted operations.  You may assume that you can apply for the funding needed from a named bank or other lender at the prevailing market rate. 

 

A major task involves drawing up the following budgets to resource your proposed business activity and to persuade lenders to contribute financially to your business:-

  1. Table of Assumptions  

** Any and all assumptions made in estimating figures must be researched,

      referenced, reasonable & clearly stated in your table of assumptions **

  1. Budgeted detailed Contribution Statement; Total contribution & C/S ratio
  2. Calculations showing the Break-Even Point in units, £ of sales & percentage
  3. Calculations showing the Margin of Safety in units, £ of sales & percentage
  4. Capital Expenditure Budget detailing proposed asset acquisitions
  5. Overheads Budget detailing any and all indirect costs
  6. Sales Budget (principal budget factor)
  7. Purchases Budget
  8. Inventory Budget
  9. Production Budget
  10. Direct Labour Budget
  11. Cash Budget

 ** N.B. Imperative that your budgets 6.-12. include TOTAL column for 12-months**

  1. Budgeted Annual Income Statement
  2. Budgeted Annual Balance Sheet

 

Other Instructions

** You must use Excel spreadsheets in Appendix with formulae correctly 

          applied for each of your budgets 1. - 14. above

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