AYB225 Management Accounting: Understanding of your Costs


As a future manager, often you will be required to make decisions based on data obtained from a variety of sources. Often you will need to prepare your own personalized spreadsheets that are specific to your role.
Assume you have recently taken the role of a manager in a hotel or food and beverage establishment. Instructions: To gain a deeper understanding of your costs you are required to prepare a set of at least four (4) spreadsheets in MS-Excel format that utilizes the skills you have gained in this subject.
For example as a restaurant owner, you may create a spreadsheet that utilizes CVP to calculate how many meals you need to sell to breakeven. Examples of topics to select (but not limited to)
1. Sales & Cash Receipts and cash disbursements budget
2. CVP spreadsheet
a. What if with changing fixed costs
b. Variable cost changes
c. Changes to sales mix
d. Weighted Average Contribution Margin
e. Sales prices changes
3. Relevant Costs
a. Decision to drop a product line
b. Special Order Pricing
4. Flexible Budget
a. Preparation and analysis
5. Labour Costing and rostering
6. Income statement (Traditional & Contribution Margin)
In a separate report define and explain each process you have selected using credible references. Explain the rationale why you chose these areas of the business to analyze. Furthermore, explain how tools such as MS-Excel will can benefit the decision making process. MS-Excel Spreadsheet: At least four spreadsheets.
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