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PA302 Advanced Management Accounting And Performance Management

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Question:

Produce a formal business report regarding the launch of a new business selling goods to UK markets.  To support your choice of business, you will select to sell one product you wish to make.  State any assumptions you feel necessary to support your report.

The word count of 2,500 words excludes appendices. You must include within the appendices all relevant supporting business planning calculations.  

  • State your chosen business type, its trading name and what product (ideally manufactured but not necessarily) you intend to sell.  
    Provide in your own words, background as to the general price of similar goods available in the market, known competitors, assumptions about quantities and cost prices based on research in the market.
    Clearly identify a target selling price for your company’s product, using supporting arguments from your research of the current market and any other source.
    Your product cannot be a service and may be either manufactured or bought fully made ready to sell. (Max 700 words).      
  • Provide in the main body of the report any assumptions you have made about costs, revenue, demand and supply in order for the reader to understand your calculations contained in your operational budgets. This will involve explaining how you calculated the unit costs elements.
    Also, provide a brief description of any manufacturing process (supply chain process) you need to go through to get the product to market.
    Explain your assumptions about any credit facilities you will use, timing of cash flows and any assumptions to support your Cash flow budget.
  • Provide in the main body of the report an explanation of the assumptions and interpretation for your Break-even point with supporting calculations.                                                              
  • Provide a suitable conclusion highlighting the favourable points from your business idea.                                       
  • Marks will be awarded for innovation, originality of approach, report format, relevant references and quotations from suppliers and all business expenses, their websites, etc., competitive benchmarking and supporting calculations. You will need to show your research in this area. Clear citations and referencing in the Harvard Style.
  • Produce a per unit cost statement for your product, include selling price and a breakeven point in units and pounds.  
  • Prepare a one year Operational budget for each of the cost elements and the production/sales budgets. 
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