Peer Response That Needs Commented On Due By Wed The 1st

Peer Response That Need Commented On Due By Wed The 1st1 Tamara Ma

The assignment involves commenting on peer posts within a discussion forum. Specifically, students are expected to review and provide insights on peers' reflections or plans related to business startup costs, marketing strategies, and financial analysis such as contribution margins. The task requires engaging with the content, offering constructive feedback, or expanding on the points made by classmates to foster deeper understanding and discussion in the context of business planning and accounting principles.

Paper For Above instruction

Starting a business involves meticulous planning and detailed understanding of various costs and financial principles to ensure sustainability and profitability. The peer posts provided offer valuable insights into different aspects of business startup costs, marketing plans, and financial analysis techniques such as contribution margin analysis. Analyzing these posts highlights the importance of financial foresight and strategic planning in entrepreneurship.

In Tamara Marquis’s post, she emphasizes that her home-based business obviates the need for renting a storefront, but she recognizes the necessity of accounting for utilities, licensing, insurance, and seasonal costs such as craft fair booth rentals. Her approach to spreading annual license and insurance costs over a 12-month period exemplifies practical financial planning. She also allocates specific monthly budgets for utilities and advertising, highlighting the importance of detailed expense forecasting. Her recognition that seasonal craft fair costs temporarily increase selling and administrative expenses demonstrates an understanding of variable costs and cash flow management, which are critical in small business operations.

Similarly, Tramaine Ashford’s post underscores the significance of initial marketing strategies when launching a business, starting with a home-based model before considering a storefront expansion. His focus on diverse advertising channels such as social media, television, public transportation, flyers, and billboards reflects a comprehensive marketing approach designed to maximize brand visibility. His mention of fixed costs like rent, utilities, and potential management staffing as the business grows aligns with sound financial planning, acknowledging how costs evolve with business expansion. The emphasis on resource management, including electricity and water, demonstrates an understanding of operational costs.

The third set of peer responses delves deeper into the concepts of fixed and variable costs, contribution margin, and decision-making based on these financial metrics. Marquis’s discussion of costs involved in manufacturing kitchen scales illustrates the distinction between fixed costs (factory rent, utilities, salaries) and variable costs (raw materials, packaging, labor). Her explanation of contribution margin as the amount left after subtracting variable costs from revenue underscores its utility in assessing product profitability and overall business viability. The calculation method—multiplying units sold by selling price and subtracting variable costs—aligns with standard accounting practices, enabling managers to make informed pricing and production decisions.

Furthermore, the discussion on how changes in sales volume or costs affect contribution margin reinforces its role in strategic decision-making. For instance, understanding whether lowering prices could still cover variable costs and contribute to fixed costs helps determine the feasibility of promotional strategies. Tramaine Ashford’s assertion that contribution margin helps reveal how fixed costs can be covered with current revenue further illustrates its importance in managing profitability and planning for growth.

Comprehending these concepts is foundational for entrepreneurs and managers. Mastery of contribution margin analysis enables business owners to evaluate whether pricing strategies are adequate, to determine the breakeven point, and to assess the impact of cost fluctuations. It also informs decisions about scaling operations, increasing marketing expenditures, or launching new products, all within the framework of maintaining profitability.

In conclusion, these peer posts collectively demonstrate the vital role of detailed financial planning, cost management, and strategic analysis in business startup and growth phases. Aspiring entrepreneurs must develop the ability to accurately estimate costs, analyze profitability through contribution margin, and make data-driven decisions to ensure long-term success. Educational discussions such as these foster crucial skills necessary for sound managerial and financial decision-making in the competitive landscape of business.

References

• Argosy University. (2017). Methods of CVP Analysis. Principles of Management Accounting.
• Drury, C. (2013). Management and Cost Accounting. Springer.
• Garrison, R. H., Noreen, E. W., & Brewer, P. C. (2018). Managerial Accounting. McGraw-Hill Education.
• Hilton, R. W., & Platt, D. E. (2013). Managerial Accounting: Creating Value in a Dynamic Business Environment. McGraw-Hill Education.
• Horngren, C. T., Datar, S. M., & Rajan, M. (2015). Cost Accounting: A Managerial Emphasis. Pearson.
• Kaplan, R. S., & Atkinson, A. A. (2014). Advanced Management Accounting. Pearson Education.
• Larson, K. D., & Stern, R. M. (2014). Modern Cost Accounting. McGraw-Hill.
• Shank, J. K., & Govindarajan, V. (2012). Strategic Cost Management. McGraw-Hill Education.
• Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2018). Managerial Accounting. Wiley.
• Zimmerman, J. L. (2014). Accounting for Decision Making and Control. McGraw-Hill Education.