...Competition Bikes Budgeting and Variance Analysis Report Western Governor’s University Competition Bikes Budgeting and Variance Analysis Report Competition Bikes, Incorporated (Inc.) makes bicycles for professional and other highly accomplished riders who compete in bike races, biathlons, and triathlons. Approximately sixty percent of all race winners have been victorious using bicycles designed by Competitions Bikes, Inc. This extraordinary success rate is a topic of conversation among racers and has led to exponential success for founder Larry Ferguson who formed the company in 2001 in his garage. Competition Bikes is known for quality products and is leader in the market with the CarbonLite products they provide. These results are transparent in the budgets from the last few years; however, the most recent budget contained several unfavorable variances that may be an indication that some changes are needed. Budget planning, identifying unfavorable variance, and correcting those variances can make or break the financial position of a company. The following is a summary report that discussed budgetary areas that raise concern in budget planning; evaluates the flexible budget and its variance; recommends corrections actions for areas of concern based on the variance analysis; and discusses how the concept of management by exception could be applied to the variances. Budget Planning, Allocation of Resources, and Management Control ...
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...practiced outdoors and is likely to be weather dependent, then we should assume that there are seasonal trends to competitions and events involving professional bicycle teams. Without the separation of production activity by quarter we cannot see and respond to peak seasons and low seasons. An optimal example of this is that materials are purchased without regard to seasonal activity, so that If the peak is summer, the company should be building up inventory in the spring, and lowering inventory in the fall. This way the company avoids having higher inventory levels than it needs. This also helps the company utilize its reserve inventory for its true purpose, to cover unexpected increases in sales, not to cover budgeting issues. Concern 2 – Sales Projections The sales budget is based on projections that take into account trend information as well as market, competitor, and other econometric information to provide an accurate forecast of future sales (Hilton, 2009). The projected sales figure of 3,510 units for year 9 is not supported by past sales performance. For year 8 there was a 15% decrease in units sold in comparison to year 7 levels. According to information provided by the company this is due to the economic situation which affects professional rider’s sponsorships. The company also states that this trend (decrease in...
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...Requirements for Task 1: A Prepare a summary report in which you do the following: 1) Evaluate the company’s operational strengths and weaknesses based on the following: a) Review the horizontal analysis, analyze the results, and discuss operational areas of concern. “Horizontal analysis of financial statements involves comparison of a financial ratio, a benchmark, or a line item over a number of accounting periods. This method of analysis is also known as trend analysis. Horizontal analysis allows the assessment of relative changes in different items over time. It also indicates the behavior of revenues, expenses, and other line items of financial statements over the course of time.” (Ready Ratios, 2014a) The sections below summarize the results of my horizontal analysis of Competition Bikes, Inc. (CB): Year 7 to Year 8 CB suffered a decrease in Net Sales Revenue of 15% from Year 7 to Year 8, but the course materials explained this as a result of a decline in the overall economy. This is a reasonable explanation and may very well indicate that CB management’s actions or inactions are not to blame for decline. It is encouraging that percentage decreases in Cost of Goods Sold and Selling Expenses, 14.5% and 14.9%, respectively, approximated the 15% decrease in Net Sales indicating no significant change in marginal cost of production and sales. That total General and Administrative Expenses increased by 1.2% is not any cause for...
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...Introduction: JET2 Task 2 Summary Report for Budgetary Planning Competition Bikes, Inc. will be reviewed for its various budgets and for its budgetary planning. Budgets are the main planning tool in all businesses that are used by managers to executive management to make decisions for the company. Cash flow is the bloodline of any organization’s operation including operating activities that determine how much cash stays in the organization called revenues and how much is paid out as an expense or liability. Competition Bikes Inc. makes bicycles for professional riders who compete in road races such as triathlons and biathlons. The bikes have an extraordinary success rate and the product consistently finishes in the winners bracket approximately sixty percent of the time. However, due to the recent economic situation Competition Bikes, Inc. has experience a recent decline of approximately 15 percent in its bicycle sales which the trend expecting to continue for the next thirty six months. This review will provide an analysis and provide recommendation for improving budget planning for the company in a summary report Task: Note: submit a copy of your Excel workbook when submitting your JET2 Task 2 work. . A. Prepare a summary report in which you do the following: 1. Discussion of budgetary areas that raise concern in the budget planning. One of the biggest issues when creating budgets is that there is no absolute way of knowing what next year...
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...Competition Bikes Inc. Horizontal Analysis Competition Bikes Inc. net sales when matched to the previous year were substantially lower. In essence, the current economic changes attributed to this situation. However, the company anticipates per unit transactions will go into a period of growth over three subsequent years, and it will thus continue being profitable. In spite of the noted low sales numbers, the net price of product sold when matched to net sales; stayed at seventy percent. This validates that the raw material values and labor inputs have remained consistent. In addition, the price for advertising was lower by 16.3 percent, which was due to the lower sales data. The first expenses that are often affected are advertising and marketing budgets when the economy takes a downturn. The company expenditures have been pretty continual from the operational beginnings to the present time. One such expenditure is the utilities, 11.1 percent is allocated for energy, which is directly related to an increase utility rates. The next expenditure is administration cost, which encompass about 7.6 percent of expenses in relation to the fifteen percent reduction in sales. In correlation, there is a decrease in operating revenue that is in correlation to the sales numbers, which now stands at fifteen percent. The organization pays utilities, salaries and fixed expenses regardless of sales or the lack of sales. This disrupts the organizations monies in correlation to...
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...JET2 – Task 4 Financial Statement Analysis Managing Internal Cost & Controlling Finances Summary Report In response to a request from the Vice President of Competition Bikes for an analysis and recommendation regarding Activity Base Costing, as well as a request for a break-even analysis with projections of the company’s target profit, I have developed the following report. 1. Costing Method Evaluation Traditional Costing and Activity Based Costing (ABC) are the two systems we will evaluate in relation to Competition Bikes’ operations. To do so, we will need to look at the advantages and disadvantages of both systems. Costing systems are used to help predict the profitability of a product and help establish the cost of a product correlated to the income it generates. Traditional costing allocates overhead according to the amount of a particular cost driver, for example, how many direct labor hours are required to manufacture a product, while activity based costing looks at each activity and assigns a cost to it. Traditional costing separates costs into direct and indirect categories. The costs of labor or of raw materials would be examples of direct costs. Then, traditional costing divides the total cost of a product by the direct labor cost. This gives us the estimated cost of the product per item. However, increasingly in today’s business environment, the proportion of direct costs have fallen in relation to the proportion...
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... MODULE ONE 1. Table of Contents 2. Acknowledgements 3. Introduction (include reason for paper and choice of company) MODULE TWO – External Environment Analysis 1. Definition of Industry (include overview) 2. Analysis of Present Task Environment 3. Analysis of Potential Changes in the Macroenvironment 4. Threats and Opportunities Basis: 1. Effect of potential changes on the macroenvironment on the barriers and determinants of the task environment. 2. The effect on the forces of the task environment. 3. The conclusion on whether the potential change on the macro is a threat or opportunity. Note: The potential changes in the macroenvironment that will cause a change in the in the task environment will be a threat or an opportunity to the industry. 5. Industry and competitive analysis. 6.1 Strategic map 6.2 Market Definition 6.3 Market Size 6. Broader Societal Expectations 6.1 Corporate Social Responsibility MODULE THREE – Analysis of Internal Environment 1. Overview of the company 2. Financial Analysis 2.1 Financial Ratios 3. Value Chain Analysis 4. Strengths and Weaknesses 4.1 Describe the Strengths and weaknesses 4.2 State the basis for each strength and weakness. Basis is from Financial and Value Chain Analysis 5. Personal values MODULE FOUR – Strategic Plan 1. Vision (include mission) 2. Objectives – Financial, Social and Strategic Basis: Vision Note:...
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...Financial Reporting and Analysis DE5G 35 Assessment Exemplar for Higher National Unit DE5G 35: Financial Reporting and Analysis 1st edition: May 2004 Price: £20.00 Publication code: CB 1989 Published by the Scottish Qualifications Authority, Hanover House, 24 Douglas Street, Glasgow, G2 7NQ, and Ironmills Road, Dalkeith, Midlothian, EH22 1LE The information in this publication may be reproduced to support SQA qualifications. If it is reproduced, SQA should be clearly acknowledged as the source. If it is to be used for any other purpose, then written permission must be obtained from the Support Materials Development Officer at SQA. It must not be reproduced for trade or commercial purposes. © Scottish Qualifications Authority 2004 DE5G 35: Financial Reporting and Analysis Contents 1 2 3 Introduction How to generate evidence Assessment exemplar Scottish Qualifications Authority Assessment Exemplars for Higher National Units DE5G 35: Financial Reporting and Analysis 1 Introduction This pack must be used in conjunction with a copy of the Unit specification which details the standard of performance expected of the candidate. A copy of the Unit specification can be obtained from SQA. This pack supplements the assessment guidelines and support notes of the Unit specification. It aims to provide an example of assessment that is valid, reliable and practicable. The assessment task(s) detailed in this pack correspond to the assessment guidelines outlined...
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...Simulation MBA Capstone Tasks: Best Practices If you are in the MBA Capstone course, you can see the light at the end of the tunnel. These best practices are designed to help make the stretch of your educational journey as smooth as possible. A mindset of excellence Your MBA Capstone tasks should reflect your highest quality work; your current state of excellence. The standards are high for the capstone tasks. Doing just enough to get by or good enough will result in re-work and re-submissions. The best practice is to strive for excellence. Read for understanding Read the course of study, task instructions, and task rubrics. Seek clarification on any points that might be subject to multiple interpretations. Do not assume; know. The best practice is to be prepared by reading for understanding. Capsim Simulation The designation of MBA indicates the ability to lead and manage both vertically and horizontally across an organization. It is the ability to maximize organizational success by understanding the organization as a system of integrated and interdependent parts. Successful completion of assessments in your MBA courses signals that you know the theories and competencies; the simulation is an opportunity to demonstrate and apply your skills. The best practices are listed below. 1. Read the Team Member Guide; understand your role and the roles of other team members. 2. Complete the Capsim pre-work. 3. Understand the simulation is challenging, time intensive...
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...governments. Therefore, the Malaysian Government, similar to many other governments, has planned and implemented a number of programmes to embrace the digital world by transforming itself to deliver information and services electronically. In public sector audit and accounting practices, the Malaysian Government has experienced local reform aimed at escalating transparency, streamlining accountability and improving overall financial management in line with international standards and practices. The purpose of this study is to evaluate the impact of computer-based accounting systems (CBASs) on the effectiveness of performing accounting tasks by Malaysian public sector agencies (PSAs). This study focuses on the impact of performancebased outcomes at three levels: individual task, accounting-related task, and organisational level performance. With regard to accounting-related task performance outcomes, this study aims to analyse the impact of CBASs on the typical processes, which are related to budgeting, financial reporting, auditing and financial controlling. This study also seeks to investigate the influence of driving factors comprising management support and organisational resources and capabilities on the...
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...financing for the organization. One has to know the costs of financing as a prerequisite before selecting the proper financing sources. In this assignment, several advantages and disadvantages are discussed for different financing methods, cost of finance, financial planning and information and many other issues that help to gain a proper knowledge about the financing in organization. Different books and journals have been used to prepare the assignment. Contents Introduction 3 Requirement 1 3 Task 1.1 : Business needs finance and available sources of finance to a business 3 Equity financing 4 Debt Financing 4 Lease Financing 4 Task 1.2 : Accessing and comparing the implication of the different sources of finance 4 Implication of equity financing 4 Implication of debt financing 4 Implication of lease financing 5 Task 1.3: evaluation of the appropriate sources of finance for the above mention businesses. 5 M1: Critically evaluate each available sources of finance to that particular firm. Evaluation should include the pros and cons, and legal aspects of each source. (Merit M1). 5 Case study 1: An engineering firm 5 Equity financing for this firm 5 Debt financing 5 Lease financing 5 Case study 2: Individual financing 5 Equity financing for this firm 5 Debt financing 6 Lease financing 6 Case study 3: Large plc. 6 Equity financing for this firm 6 Debt financing 6 Lease financing 6 Case study 4: Local Do It yourself firm 6 Equity...
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...Floor Assignment Criteria Sheet — 2. Take Home: Critical Analysis [Question 1] (25%) Student Name (Student number): _______________________________________________________________________________________________________ Criteria | 7 | 6 | 5 | 4 | <4 | Marks | Knowledge and Skills [KS 1.1: Well-researched knowledge and critical understanding applied to issues at the forefront of a specialised discipline area] | Correctly identify and describe financial concepts and theories | Responses demonstrate excellent understanding of the topic in terms of all relevant financial concepts and theories | Responses demonstrate very good understanding of the topic in terms of most relevant financial concepts and theories | Responses demonstrate a sound understanding of most aspects of the topic in terms of relevant financial concepts and theories | Responses demonstrate satisfactory though limited understanding of the topic in terms of relevant financial concepts and theories | Satisfactory understanding of relevant financial concepts and theories is not demonstrated or financial concepts and theories not correctly identified | / 5 % | Knowledge and Skills [KS 1.2: Ability to select and use effectively a large range of tools and technologies to locate and/or generate information appropriate to the disciplinary context] | Accurate and professional presentation and interpretation of relevant financial data supporting analysis | Financial data relevant to topic are presented...
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...Public Practice Audit Case Lectures and handouts by: Debbie Moy, BA. CGA 1 BC 2 – Assignment 1 • Submission requirements for BC2 • Assignment #1 • Task 1 — Review client communication 7 marks • Task 2 — Determine materiality and perform preliminary Analysis 9 • Task 3 — Assess inherent risk. 6 • Task 4 — Gain an understanding of the client's internal control environment and assess control risk. 4 24 marks 2 BC 2 – Assignment #2 • Task 5 — Design and perform tests of controls and dual-purpose tests. 10 marks 3 1 BC 2-Assignment #3 • Task 6 — Perform audit of cash and investments. 6 marks • Task 7 — Perform audit of accounts receivable. 10 » 16 marks 4 BC 2 – Assignment #4 • Task 8 — Perform audit of inventory. • 7 marks • Task 9 — Perform audit of accounts payable. 6 13 marks 5 BC 2 – Assignment #5 • Task 10 — Complete the audit. 35 marks Total: 100 marks 6 2 BC2- Introduction Public Practice Audit Case Contains: • Part 1 Client Background • Part 2 W/P Preparation. • Part 3 Student tasks. • Part 4 Working papers (ie. W/P) • Part 5 Permanent File • Part 6 Client documents • Part 7 Blank W/Ps’ 7 BC2 Topics in Audio Tapes: • Welcome to BC2- Public Practice Audit Case! • Introduction • Student tasks (#1 to #10) • FAQ from students • Disposition sheet and Deficiency List • Handouts • Lecturer’s ideas for success! 8 BC2 Introduction: • How long does BC2 take to do? • Computer requirements: ...
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...government that actions would be taken to avoid a loss for the 2014 fiscal year, and set a 5% net profit margin target to be met, within three years, as a corporate goal. This target was approved by both the Board members and the federal ministers, to whom they report. The following alternatives were identified for consideration: 1. Invest in renovations in order to proceed with the Bitumen Shipping Project. 2. Divest the Cruise Ship Terminal. 3. Operate a Passenger Ferry. Additionally, the following minor alternatives were identified: 1. Allow a local entrepreneur to build a reception centre in the cruise ship terminal and pay a royalty of 8% of revenue to CLPA. 2. Build a fitness facility in order to reduce sick time. As Kyle Wast, CMA, prepare a report for CLPA’s executive team advising them on the opportunities discussed and addressing any other organizational issues and concerns requiring their attention. Include details of your analysis, support for your recommendations, an action plan to implement those recommendations, and a financial forecast. In undertaking this task, you will need to take into consideration your background knowledge of the organization and industry as well as the additional information provided herein. CICA and CMA Canada joined together January 1, 2013, to create CPA Canada as the national organization to support unification of the Canadian accounting...
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...[pic]RJET Task 1 | | | | | | | |Help on this Page | |Directions | | | |SUBDOMAINS: 326.1 - MANAGING INTERNAL COST & CONTROLLING FINANCES | |326.2 - MANAGING CAPITAL AND FINANCIAL ASSETS | |326.4 - MANAGING ENTERPRISE RISK & CONTINUITY | |329.4 - MANAGING OPERATIONS | | | |Competencies: 326.1.1: Financial Analysis - The graduate analyzes and benchmarks financial statements, evaluates company | |performance, identifies...
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