Managerial Accounting Business Decision Making Homework Help
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Assume you are the Manager of a small food production company based in Alperton who wants to expand the business. The CEO of your company (your line manager) is very excited about your plan.
(You may also choose a company/organisation of your own; please discuss and agree your choice with a tutor.)
You have identified the canteen of the London School of Science and Technology (LSST) as an ideal location for your expansion. It has a large number of busy and hungry students and college staff who want something quick to eat during their lunch break.
You have approached the Management Board of LSST who has kindly agreed to listen to your suggestions for expansion, based on valid market research.
You now have three weeks to prepare for this meeting, which can be a life-changing opportunity for your company.
You are required to complete the following tasks
Q.1 Design a market survey questionnaire to gain more insights (e.g. on product preference, place, price and promotion, etc.).
Q.2 In approximately 200 words, discuss the survey methodology you decide to adopt and the sampling method you will use.
Q.3 and Q.4 Plan and implement the survey. Using your designed questionnaire in Q.1
• Interview around 10 randomly selected potential customers in the LSST canteen.
• Write a report in approximately 200 words to your line manager, highlighting the reasons why you think the LSST Canteen is appropriate for expanding your business. This report should contain a plan highlighting how you intend to collect primary and secondary data.
Your line manager from the small food production company wants to know more about the monthly expenditure by the customer, that is, college staff and students in the LSST canteen. He has asked you to conduct more surveys, and you grouped the results as follows
|Monthly Expenditure /£||No. of Customers|
You are required to calculate the following
Q.1 Mean, Median and Mode, and advise your line manager of the significance of these calculations.
Q.2 Range and Standard Deviation.
Q.3 Inter-quartile range, and explain the use of quartiles and percentiles in the context of your small food production company.
Your line manager is really proud of your progress with the LSST project.
Fortunately, a businessangelhas also noticed your work and is keen to understand what your company has to offer before making an investment.
Your boss has provided the following data and has asked you to make them presentable for the meeting with the business angel.
|Year||Sales (£’000)||Cost (£’000)||Profit (£’000)|
You are required to complete the following
Q.1 Produce a Column/Bar graph showing Sales, Cost and Profit using Microsoft Excel.
Q.2 Produce sales and profit line graphs showing trend lines which can be used for projecting both the sales and profit. Show the regression equation separately on the graph.
Q.3 Prepare a presentation using Microsoft PowerPoint. Apply part of your answers from Q.1 and Q2 in task 3, drawing valid conclusions and recommendations.
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Q. 1 In approximately 300 words, discuss the information processing systems that can be used to aid decision-making at the operational, tactical and strategic levels.
Q. 2 Your boss is planning to construct a new kitchen and predicts the following activities will take place
|Activities||Description||Preceded by||Duration/ (days)|
|A||Lay foundation and build structure||–||80|
You are required to
Prepare a network diagram for the activities using Microsoft Project or Open Project, clearly showing the critical path. In addition, calculate the Project Duration.
Q.3 Your small food production company needs to choose between two mutually exclusive projects.
The Finance Director suggested that the project with the higher NPV should be chosen whereas the Managing Director suggested that the one with the higher ARR should be undertaken.
Both projects have the same initial investment and length of life. The company anticipates a Discounting Factor of 10% and future cash flows of the projects are as follows
|Project B |
You are required to calculate the Payback period, ARR and NPV of each project. Recommend which project you would undertake (if any) and state why you would recommend this option.
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