Project on Management Accounting
Added on -2021-02-21
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MAJOR PROJECT
Table of ContentsINTRODUCTION...........................................................................................................................3MAIN BODY...................................................................................................................................31. An overview of expected result for year 2020........................................................................32. Contribution per margin for each product of company...........................................................43. Recommendations regarding to cash position of business......................................................44. Analysis of current market condition......................................................................................5CONCLUSION ...............................................................................................................................6REFERENCES................................................................................................................................7
INTRODUCTIONThe management accounting is a field of accounting which prepares various kind ofquantitative and qualitative reports for effective decision making (Zeng, Veeravalli, 2015).Under this different types of budgets are prepared. Eventually, budgets are very important formanagement of financial resources of companies. This is so because under budgets estimation offuture income and expenses is done effectively. For better understanding Sunny days company isselected which is involved in the manufacturing of swimwear and beach accessories for men andwomen. Their major products are one piece swimsuits, board short, towel and beach umbrellas Inthe project report different types of budgets are prepared of such as sales revenue budget,production budget, cash purchase budget, labour budget, cost of sales budget etc. In addition,under report contribution for each product is also calculated. Further, in the report current andfuture market condition is analysed for above company. MAIN BODY1. An overview of expected result for year 2020.The sunny days company is expecting good financial growth for upcoming year 2020.This is so because of their forecasted budget for year 2020 which is presenting the future sales oftheir major four products such as swimsuits, board short, towel and beach umbrella. Like theirproduct one piece's expected sales in year 2020 is of $992000 and for next year 2021 it isestimated of $256000 for month of January and February. Apart from it, board short' estimatedsales is of $849000 for year 2020 and for year 2021 (Only for two months) is of $210000. As well as expected amount of sales for Towel is of $ 77400 for year 2020 and for year2021(Only for two months) , its of $ 25200 . Same as for product beach umbrella's estimatedsales is of $ 53900 in year 2020 and in year 2021(Only for two months) , this is of $ 14700.Hence, among all these products it is noted that produce one piece's sales is expected to be higheras compare to rest of three products. Apart from it, the total sales is of all the products is of $1972300. To get this estimated target of sales, the above company should focus on keeping pricesimilar in all the 12 months as well as they should try to enhance the total sales in those seasonsin which sales can be higher. Like in the month of January expected sales is higher for all theproducts so they should put more efforts on it.
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