In A Detailed PowerPoint Presentation To 15 Slides In Length ✓ Solved

In A Detailed Powerpointpresentation12 To 15 Slides In Length Plus S

Create a detailed PowerPoint presentation (12 to 15 slides, plus speaker notes and an addendum) explaining and defending your costing strategies integrated with your business plan, showcasing your company's performance to date. The presentation should communicate clearly to stakeholders, breaking down complex concepts using investor-friendly language to build trust and confidence. It must cover the company’s profile, your methods for generating financial information aligned with industry standards and ethics, how managerial accounting supports your mission, your financial strategies including pricing and profit targets, and your current financial performance including variances and analysis. Additionally, provide a comprehensive addendum with classification of costs, contribution margin analysis, and break-even points.

Sample Paper For Above instruction

Introduction to Business and Purpose of Presentation

Our company, Paws & Claws Pet Care, is located in Denver, Colorado, serving pet owners with grooming, day care, and boarding services. Our core mission is to provide exceptional, reliable, and compassionate pet care, ensuring pet wellness and customer satisfaction. The vision is to become the leading pet care provider in the region, renowned for ethical practices and innovative services.

The purpose of this presentation is to communicate our financial strategies, operational performance, and future projections to our investors. We aim to demonstrate the soundness of our costing methods, operational efficiencies, and profitability to instill confidence and provide transparency. The information shared is vital for stakeholders to assess the financial health, strategic direction, and growth potential of our business. Ensuring investors understand the rationale behind our budgets and models helps foster trust and encourage informed decision-making.

Adherence to Industry Standards and Ethical Financial Reporting

Our financial data collection and reporting adhere strictly to industry standards, notably GAAP (Generally Accepted Accounting Principles), ensuring consistency and comparability. We follow the AICPA (American Institute of CPAs) Code of Ethics, emphasizing integrity, objectivity, competence, confidentiality, and professionalism in managing our financial information.

Our team employs reputable accounting software and follows rigorous internal controls to maintain accuracy. Regular audits and reconciliations are conducted by external auditors to validate our financial statements. These practices ensure that our investors receive reliable, timely, and ethically prepared data, which supports transparent decision-making and regulatory compliance.

Managerial Accounting Support for Organizational Mission

Our managerial accounting methods directly support our mission by informing strategic decisions and operational improvements. For example, we utilize job order costing to allocate costs accurately to individual services, facilitating precise cost control and pricing decisions aligned with our goal of delivering value and quality. This system tracks expenses per client job, allowing for tailored pricing and profitability analysis, essential for maintaining service excellence and customer satisfaction.

Additionally, managerial accounting helps monitor performance against benchmarks, providing insights into customer preferences and operational efficiencies. For instance, analyzing cost drivers enables us to optimize staffing schedules during peak hours, enhancing service delivery while managing costs effectively.

Financial Strategy and Costing Methods

Our original business plan employed job order costing due to the customized nature of services. Comparing this with process costing, typically used in mass manufacturing, job order costing offers flexibility and detailed tracking necessary for service-based operations like pet grooming and daycare.

Job order costing allows us to assign direct materials and labor precisely to individual customer jobs, facilitating accurate pricing and profitability analysis. It supports our strategic goal of offering personalized services while maintaining cost control. In contrast, process costing, which averages costs across many units, would be less effective for our business as it can diminish visibility into individual job profitability.

Pricing Strategies: Grooming, Day Care, and Boarding

Pricing for our services is based on a cost-volume-profit (CVP) analysis, ensuring that prices cover direct costs and contribute toward fixed expenses and profit goals. For grooming services, we established a price point of $50 per session, considering an average direct cost of $20, which yields a contribution margin of $30. Similarly, our daycare charges $25 per day, with direct costs of $10, resulting in a contribution margin of $15.

The CVP analysis guides us in setting prices that ensure profitability regardless of fluctuating demand. For boarding, we charge $40 per night, with costs totaling $18, maintaining a healthy contribution margin. These prices are designed to meet our targeted profit margins while remaining competitive within the local market.

Profit Targets and Contribution Margins

Our target profits are set based on activity analysis and market conditions. We aim for a 20% profit margin on grooming and a 15% margin on daycare, aligning with industry standards. The contribution margin per unit (service) is calculated as revenue minus variable costs; for grooming, it’s $30, and for daycare, $15.

The contribution margin ratio—contribution margin divided by price—is approximately 60% for grooming and 60% for daycare services, providing a buffer to cover fixed costs and generate profit. Maintaining these margins is critical for achieving our financial objectives, securing sustainable growth, and reinvesting in service improvements.

Financial Performance and Variance Analysis

Reviewing recent performance, our financial statements indicate steady growth, with revenues reaching $150,000 and net profit of $25,000 in the first quarter. The statement of cost of services shows direct materials and labor costs within projected ranges.

Variance analysis reveals a labor time variance of +$1,200, due to overtime during peak periods, and a materials price variance of -$500, attributed to bulk purchasing discounts. These variances highlight areas for tighter cost controls, informing future budgeting. The positive labor variance suggests efficiency, while the materials variance offers cost-saving opportunities.

Understanding these variances enables us to adjust our budgeting and operational plans proactively, improving accuracy and profitability in subsequent periods.

Conclusion

Our comprehensive financial approach, rooted in industry best practices and ethical standards, ensures accurate, transparent reporting that supports strategic decisions. The use of job order costing aligns with our customized services, facilitating precise cost control and pricing. Our CVP analysis underpins our pricing strategies, targeting sustainable profitability while remaining competitive.

Continued monitoring of performance through variance analysis allows us to refine operations and maintain financial health. We are committed to ethical practices and transparent communication to foster investor confidence and ensure long-term success.

References

• Hansen, D. R., Mowen, M. M., & Heitger, D. L. (2020). Cost Management: A Strategic Emphasis. Cengage Learning.
• Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting. McGraw-Hill Education.
• American Institute of CPAs (AICPA). (2022). Code of Professional Conduct. AICPA.
• Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2020). Financial & Managerial Accounting. Wiley.
• Drury, C. (2018). Management and Cost Accounting. Cengage Learning.
• Kaplan, R. S., & Atkinson, A. A. (2019). Advanced Management Accounting. Pearson.
• Horngren, C. T., Datar, S. M., & Rajan, M. (2018). Cost Accounting: A Managerial Emphasis. Pearson.
• Blocher, E., Stout, D. E., Juras, P. E., & Cokins, G. (2019). Cost Management: A Strategic Emphasis. McGraw-Hill Education.
• Wild, J. J., Subramanyam, K. R., & Halsey, R. (2019). Financial Statement Analysis. McGraw-Hill Education.
• Arnaboldi, M., Lapsley, I., & Lasini, N. (2017). Management Accounting and Control Systems. Routledge.