Conducting cost and inventory analysis

 

You are required to complete a writing assignment for this Module. You will utilize concepts such as cost classifications and inventory management in answering the requirements of this assignment. Make sure you review all these concepts before working on the writing assignment.

Select a manufacturing type of business near where you live, or a manufacturing business being run by someone you know near where you live. The business must have inventory.

  • If you can find a local manufacturer would be the best choice, as you will be able to apply many of the concepts you have been learning throughout this course to answering the questions below. You can try to arrange a meeting with the business owner/manager.
  • If you cannot find a local manufacturer for this assignment, then select a Company of interest to you that manufactures a product of personal or professional interest to you. (For example, Ford; Apple; GM; etc. would be a good choice.) You may need to go to the website of the business you have chosen.

Address the following issues on the business you have chosen, applying what you have learned to date in Modules 1 through 3.

Requirements

Write a 2-4 page (1000-1500 words), double-spaced report (excluding a separate Cover and a separate Reference page) answering the following questions. Please include each question below in bold type with your answers directly below each question as part of your submission. Use the textbook and at least one other outside resource as references to support your response.

Your submission should include a separate cover page with your name, date, ACC212-Managerial Accounting, and Module 3 Major Assignment on the cover page; and a separate reference page. 

  1. Write a brief 1-2 paragraph summary of the type of business you have decided to analyze, including the name of the business, location of the business, and the business model (i.e. how does this business add value and generate profit?). 
  2. Describe in detail a list of expenses that the business incurs which are fixed, variable, or mixed. Be specific.
  3. Add a column to the above list of expenses and describe which expenses are product or period expenses, and why.
  4. Applying what you learned in Module 1 about inventory management, what are some important considerations regarding inventory management that apply to the business you are analyzing? Be specific.
  5. Assume the business you have chosen suddenly had an unanticipated very large increase in business. Which of the fixed expenses you described above would have to be increased to support this unanticipated increase and business, and why?
  6. Assume the business you have chosen suddenly had an unanticipated large decrease (downturn) in business. Which of the above variable and fixed expenses could be adjusted downward, accordingly, to keep the business profitable until the business recovers, how, and why?
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