Business Plan for Managerial Accounting

Business plan for managerial
accounting
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Breakeven point of sandwich.......................................................................................................3
Breakeven point of coffee............................................................................................................4
Sales forecast...............................................................................................................................6
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................7
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INTRODUCTION
Business plan is a process through which mangers decided the guideline and framework which
provide them direction to run their business organizations activities. In this report Vic
organization has been taken which used to revelled new business of hot drinks and sandwich
within the DPD headquarter. For his purpose they formulated and business plan. In this report
calculation of various statement of among is prepared though which mange identifying future
growth and profitability rate by applying these business operational activities,. They also used
sales forecasts through which they can recognize changes of sales quantities affect the business
profitability rate.
TASK 1
Breakeven point of sandwich
Break even analysis refers to ascertainment of level of operations where total revenue equals to
total cost. It is an analysis
The organization use this to forecast profit accurate in upcoming future activities and it is
absolutely essential to determine the relationship between cost of sandwich and hot drinks with
profits. Break even analysis is used in setting up flexing budgets used to determine the probable
profit or loss at any level of operations.
In its broad sense break even analysis refers to the study of relationship between cost, volume
and profit at different levels of sales or production.
In its narrow sense it refers to a technique of determining that level of operations where revenue
total equal total expenses that means point of no profit and no loss.
Thus it is calculated if the approximate sales volume required to just covering cost below which
production would be unprofitable and above which it would be profitable. Break even analyses
focuses on the relationship between fixed cost variable cost and profit (Carenys and Moya,
2016).
I t is used in setting up flexible budgets which shows costs at various level of activities. It helps
management in the evaluation of performance for control purpose. It is useful in formatting
pricing policies by projecting the effect than various price structures have on costs and profits
especially when the demand for the products is elastic. This method is used by managers of
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