Project Management: Accounting Service Plan, Budget, and Reflection

This project delves into the realm of project management within the context of providing accounting services to a retail organization in Australia. The assignment begins by outlining the vision, purpose, and goals of the accounting services, emphasizing their role in financial recording, reporting, and analysis. The project then proceeds to estimate standard direct material and labor costs, providing detailed breakdowns for computer hardware and software, as well as labor costs for various roles such as IT managers and developers. Following this, the project estimates standard variable and fixed overheads. A master budget is then prepared, encompassing sales, production, direct materials, direct labor, manufacturing overhead, and operating expenses, all for a one-month operational period. Finally, the project concludes with a reflection on the knowledge and skills acquired, highlighting the importance of project planning, budgeting techniques, and financial management.

Running head: PROJECT MANAGEMENT
Project management
Name of the Student
Name of the University
Author’s Note

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PROJECT MANAGEMENT
Table of Contents
1. Creation of product or service with discussion about vision, purpose and goal..........................2
2. Estimation of standard direct material and direct labour cost for the product or the service......2
3. Estimation of the standard variable overheads and fixed overheads...........................................3
4. Preparation of master budget for 1 month of operation...............................................................4
5. Reflection of knowledge and skills learnt...................................................................................8
Bibliography....................................................................................................................................9

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1. Creation of product or service with discussion about vision, purpose and
goal
The paper mainly reflects on the accounting service within a retail organization in
Australia. The accounting services mainly involves recording, reporting as well as analyzing the
financial transaction within the retail company in order to accumulate as well as report on the
financial performance, financial position as well as on the cash flows of the business.
The main vision of the accounting services that is supplied to the retail organization is to
supply the clients with proactive as well as expert accountancy services for making sure that the
tax liabilities of the organization get minimized by maximizing profitability.
The main purpose of utilizing the accounting services is to give proper financial
information to the business stakeholders including the investors, creditors as well as
management.
In addition to this, it is found that the main goal of the project is to make sure that the
management, board of directors as well as financial users can be able to get sufficient financial
information for enabling them to make proper informed decisions for the entire business.
2. Estimation of standard direct material and direct labour cost for the
product or the service
The estimation for the standard direct material as well as direct labour cost for the
accounting services that is offered to the retail organization is generally reflected with the help of
the table that is given below:
Direct material cost

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Materials Cost
Computer hardware $30,000
Computer software $40,000
Contracted services $20,000
Direct material cost $90,000
Direct labour cost
Labour Work/hour Cost/hr Cost calculation
IT Manger 70 hrs $50/hr 3500
Database administrator 60 hrs $50/hr 3000
Tester 40 hrs $40/hr 1600
Application
programming manager
70 hrs $55/hr 3850
Developer 50 hrs $55/hr 2750
Direct labour cost $14700
3. Estimation of the standard variable overheads and fixed overheads
The standard variable overhead as well as fixed overhead for providing accounting
services to the organization are generally reflected below:
Standard variable overhead
Standard variable overhead
Material expense $90,000

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Equipment maintenance $25,000
135,000
Fixed overhead
Fixed overhead
Salaries of employees $14,700
Insurance $20,000
Internet package $12,000
46,000
4. Preparation of master budget for 1 month of operation
The master budget for 1 month of operation is done in the retail organization is generally
reflected below:
Accounting services in a retail company in Australia
Master Budget
Sales Budget
April
Unit Sales 3,00,0
00
(*)Price Per Unit $300
Sales Revenue $9,00,
00,000
Cash Collections Budget
April
Cash Sales $0
Credit Sales $6,75,
00,000
Total Cash Collections $6,75,
00,000

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Production Budget
April
Unit Sales 3,00,0
00
(+)Plus: Desired Ending
Inventory 45,000
Total Needed 3,45,0
00
(-)Less: Beginning Inventory 0
Units to Produce 3,45,0
00
Direct Materials Budget
April
Units to be Produced 3,45,0
00
(*)Multiply by: Quantity of
DM Needed Per Unit (lbs.) 2
Quantity of DM Needed for
Production (lbs.)
6,90,0
00
(*)Multiply by: Cost Per
Pound $1.5
Total Cost of DM Purchases $10,35
,000
Cash Payments for Direct Material Purchases Budget
April
30% of Current Month DM
Purchases
$7,24,
500
70% of Previous Month DM
Purchases $0
Total Cash Payments DM
Purchases
$7,24,
500
Cash Payments for Direct Labor Budget
April
Units Produced
3,45,0
00
(*)Multiply by: Hours Per 0.03

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Unit
Direct Labor Hours 10350
(*)Multiply by: Direct Labor
Rate Per Hour $30
Direct Labor Cost
$3,10,
500
Cash Payments for Manufacturing Overhead Budget
April
Variable Manufacturing
Overhead Costs
$4,83,
000
(+)Other Manufacturing
Overhead (fixed) $2,100
Cash Payments for
Manufacturing Overhead
$4,85,
100
Cash Payments for Operating Expenses Budget
April
Variable Operating Expenses
$3,60,
000
(+)Fixed Operating
Expenses $1,400
Cash Payments for Operating
Expenses
$3,61,
400
Combined Cash Budget
April
Cash Balance, Beginning $6,000
(+)Plus: Cash Collections
$6,75,
00,000
Total Cash Available
$6,75,
06,000
(-)Less Cash Payments:
DM Purchases
$7,24,
500
Direct Labor
$3,10,
500
Manufacturing Overhead
Costs
$4,85,
100
Operating expenses
$3,61,
400

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Tax payment
$1,67,
98,544
Equipment purchases
$15,00
0
(-)Total Cash Payments
$1,86,
95,044
Ending Cash Before Financing
$4,88,
10,956
Financing:
(+)Borrowings $4,000
(-)Repayments $0
(-)Interest Payments $0
Cash Balance, Ending
$4,88,
14,956
Budgeted Manufacturing Cost per Unit
Direct Materials Cost Per Unit
Direct Labor Cost Per Unit
$30.
00
Variable Manufacturing Costs
Per Unit
$30.
00
Fixed Manufacturing
Overhead Per Unit
$40.
00
Cost of Manufacturing Each
Unit
$10
0.00
Budgeted Income Statement
Sales Revenue
$9,00,
00,000
(-)Less: Cost of
Goods Sold
$3,00,
00,000
Gross Profit
$6,00,
00,000
(-)Less:
Operating
Expenses $0
(-)Less:
Depreciation
Expense $5,200
Operating
Income
$5,99,
94,800
(-)Less: $0

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Interest Expense
(-)Less:
Income Tax
Expense
$1,67,
98,544
Net Income
$4,31,
96,256
5. Reflection of knowledge and skills learnt
It is found that after undertaking this project different types of skills and knowledge has
been gained. It is identified that proper information about the project including vision, goals as
well as requirements are very much necessary in order to proceed successfully with the progress
of the project. In addition to this, it is found that the technique of estimation is considered to be
helpful in assuming the amount of budget that is needed for completing the work of the project.
The master budget that is estimated for 1 month of operation reflects all the aggregation about
the lower levels of budget that is mainly produced by the company at various functional areas
and with the help of this budget, the organization can be able to get to know about the total
budget that is generally required. Moreover, the ways that can be utilized for managing the
budget is mainly learnt from this paper.

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Bibliography
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Shcherbina, G., & Tamulevičienė, D. (2016). Budget formation and implementation in Ukrainian
companies: empirical study. Science and studies of accounting and finance: problems
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