MANAGERIAL ACCOUNITNG

SPRING 2019 GROUP PROJECT

OVERVIEW:
This project involves your group opening and operating a business that you have
chosen. You should look at this as a real business. I make no distinction between
retail and wholesale but you are manufacturing a product or rendering a service.
All of these have the same costs as we have learned.

The first deliverable related to the project will be a COMPANY HISTORY that
will be due SUNDAY MARCH 24 by 11:59 PM. THIS WILL BE NO MORE
THAN 5 PAGES NEW TIMES ROMAN 12 FONT DOUBLE SPACED IN
WORD NOT PDF.

The idea here is to have some fun and be creative. How the company/business
formed? Why pick this product service – each company has a history? What are
you all about – save the planet – make gobs of money - whatever? This is a brief
story of your company. Look at this as a pre plan for the business plan. This is
just like “drawing a picture” for a transaction. For this is one big transaction.

I would assume that there may be some research to be done here and I will be
available to answer any questions that you might have. But for now here is the
start.

This is conceptual. Each business has a business plan but that really comes after
the idea(s) are in place

HAVE FUN!

THE SECOND DELIVERABLE related to the project will be

due SUNDAY APRIL 7 BY 11:59 PM. This deliverable will really be a
“business plan” if you will. It will contain budgets – that we will see in ch 8 –
and not all budgets will be applicable so please do not try to get all budgets in
that you have prepared, it will contain break even analysis for your operations.
This is where you really start to see your business take shape.
 The idea here is to have a vision for your company and put it into practice. You
will need to figure out what it will cost you to build out your business and
operate it making and selling your product service. Here your deliverable has
only one constraint…make sure that you have fully answered questions related to
all costs and potential revenue streams. There is an abundance of data on line for
you to research your business.
HERE ARE SOME THINGS THAT YOU MIGHT WANT TO KEEP IN
MIND RE YOUR BUSINESS:

1. When considering the sales revenues that you are looki ng for how will you
market your business.
2. You will have $500,000 to start your business as capital. If you need more
borrow and the interest rate is 7.5%
3. You may need to “rent” manufacturing or retail space for your business.
4. You will “build out” this business. You will need a budget related to this
aspect.
5. Be sure to think about your space and all that you need to house it.
6. This project will assume that you will operate the business for a quarter (3
months). As such you will need to prepare operating budgets that reflect what
revenues you expect as well as the sources of the revenues and all operating
expenses that you anticipate. This will include cash receipts/disbursements etc.
A consideration is whether you are a cash business or sell on credit.
7. Be sure to carefully think about the staffing that you will need for your
operation. PAYROLL TAXES AND BENEFITS WILL BE 10% OF THE
PAYROLL PAID.
8. You need to be sure to include any and all break even analysis that you have
done – and you should do this – as well as an analysis related to the prices that
you will charge for your products and what these will be.
9. Think about as much as you can as real businesses do this.

The length of this deliverable is totally up to you and what you need to do this.
But it needs to be complete as if you were looking for an investor.

THE THIRD DELIVERABLE related to the project will be

due TUESDAY APRIL 16 BY 11:59 PM.

This will be a paper that summarizes the project. HOW WELL DID THIS
BUSINESS RUN.WAS IT PROFITABLE ETC. IF NOT WHY NOT. IT
SHOULD BE BACKED UP BY FINANCIAL STATEMENTS FOR THE
QUARTER THAT YOU OPERATED. YOU SHOULD PROVIDE
OPERATIONAL ANALYSIS IN THE FORM OF TRADITIONAL AND
CONTRIBUTION FORMAT FINANCIAL STATEMENTS.

This deliverable should be no more than 5 pages.

ADDITIONAL – we will discuss these projects the

last week of class and presentations for your project
will be solicited. Be adventurous. No more than 4
minutes per presentation.