trident acc501 module 4 case & slp latest 2016 july

| September 13, 2018

Module 4 – Case
BUDGETING, VARIANCE ANALYSIS, AND PERFORMANCE EVALUATIONS
Case Assignment
T&P Fashion Shops

T&P Fashion Shops is a new chain that operates 10 stores
in major malls throughout the United States. Each store manager is responsible
for preparing a flexible budget for the store. T&P headquarters accumulates
and analyzes the information for each store and in the aggregate.

Below follows some cost estimates for the Houston store.

T&P Fashions
Flexible Budget Information

Expense
Fixed
Variable

Cost of sales
$210,000
40%
$740,000
Management
27,000
12%
186,000
Shop assistants
162,000
8%
268,000
Rent
13,200
5%
54,450
Utilities
34,800

34,800
$447,000
$1,283,250
Additional information
The sales forecast for the year is $1,400,000.
Variable expenses are based on revenues. Do note that
percentage clause for rent only kicks in above $500,000 in sales.
Other expenses are all specific to this store. Headquarters
pay for marketing and corporate overhead expenses.
T&P wants to see a flexible budget based on the sales
forecast, including estimates for sales being 10% below budget and 10% above
budget.
Actual results

T&P Fashions
Actual Results from Operations
Revenues
$1,325,000
Cost of sales
790,000
Management
208,000
Shop assistants
230,000
Rent
58,200
Utilities
31,000

Operating profit
$7,800
Required:
Computations (use Excel)
Prepare a flexible budget in good format.
Compute the flexible variances and indicate whether
favorable or unfavorable.
Headquarters are contemplating charging each store a 5%
marketing expense based on sales. How will that affect the operating profit of
the store and the money available for managerial bonuses based on actual
results for the past year? Summarize the information in the table.
Memo (use Word)
Write a 4- or 5-paragraph memo to the division manager
explaining the flexible budget variances; how to interpret the information; and
what action, if any to take. Comment on the 5% marketing proposal too. Start
with an introduction and end with a recommendation. Each of the four or five
paragraphs should have a heading.

Short Essay (use Word) Start with an introduction and end
with a summary or conclusion. Use headings.

Discuss how to interpret static and flexible budget
variances. How is the information useful in general?
What are the benefits of variance analysis? How can such
analysis be detrimental rather than beneficial to the organization?
Assignment Expectations
Each submission should include two files: (1) An Excel file;
and (2) A Word document. The Word document shows the memo first and short essay last. Assume
a knowledgeable business audience and
use required format and length. Individuals in business are busy and want
information presented in an organized and concise manner.

Module 4 – SLP
BUDGETING, VARIANCE ANALYSIS, AND PERFORMANCE EVALUATIONS
Fourth and final part of the presentation. See background
information for the module one SLP.
Required:
Include the following items in your presentation.
Performance measures. It is important to measure success of
the organization and its managers.
Suggest performance measures for
divisions, product lines, etc.
managers
Comment on the measures selected and explain how they foster
goal congruence for the organization and employees.
SLP Assignment Expectations
Submit a Power Point presentation or a Word Document. A
Power Presentation should have no more than six slides and a Word document
cannot exceed two pages. Use words, tables, and graphs to make a succinct
presentation. Document all sources and provide links at the end. It is
acceptable to add another slide or page to list the sources.
Combine the submissions from prior module(s) into one file
before uploading to the dropbox.
Rubric
At Trident University, your assignments will be evaluated
using grading rubrics. While every assignment is assessed using one of the
rubrics, grading rubrics may differ across assignments. Should you need help
locating the grading rubric for this SLP, be sure to watch the following video:
http://permalink.fliqz.com/aspx/permalink.aspx?at=b13c1b2c864344a68565357ea2f9f7ff&a=e635c1442edf4f4f9952a5d4ddef7bf0

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