Assignment Objective You, individually or as a group, are assigned to create a m
ID: 356047 • Letter: A
Question
Assignment Objective You, individually or as a group, are assigned to create a mock company that sells at least one product or service. Creating a mock company from scratch forces you to think through both strategic and operational aspects of managerial accounting. THE COMPANY THAT WE CHOOSE IS GONNA BE "GOHST HUNTERS" ( YOU CAN MAKE UP ANYTHING YOU WANT) ITS GONNA BE FUNCTION REQUIREMENTS! Include sections on the following o Market size and analysis [10 points] Customer value [10 points] Description of costing system and reasoning for choosing it [15 points] Company profitability estimates for first five to ten years. [15 points]Explanation / Answer
Answer: Operation management may be viewing things from a single side internally and strategic management is a holistic view of things both internally and externally as the way of coming up with actions that will improve company performance and conformance in order to achieve the set goals.
Requirements:
Market size Analysis: Understanding market size helps you distinguish between two categories the addressable market, which is the portion of the addressable market for which you can realistically compete. By outlining the difference between these two you can develop a product offering to tackle that consumer sweet spot. Without a solid grasp on your market size you endanger your company sucess in not only the early stages but also throughout its entire life cycle.
Customer Value: Customer make their decision to buy a product or service based on their perception of value. This is the underlying assumption behind the measurement of customer value added. If customer can obtain greater value elsewhere, they will.. Studies have indicated that the value of a company's product or service as perceived by its customers is the single best predictor of future changes in the company's market share.
Customer satisfaction with product or service results from providing superior value the right combination of quality and prize. In other words.Customer products and services are designed to support management in the area of strategy development. Company growth and market share initiatives. If you are working on strategic initiatives that require infromation about your comapny's position in the market place or factors that drive company growth.
Cost System: Many companies cost accounting systems are falling down on the job. They give managers correct product costing information, or they fail to measure the things that really count. Strategies may be conceptually brilliant, but if they are based on faulty information about the cost of a product, they are likely to fail in the marketplace.
Cost system dont beocme obsolete overnight. they gradually outlive their usefulness as they fail to adapt to change. So a second way is system has deteriorated is to analyze the changes that have occurred in your organization and in its environment since your first implemented the system.
Company Profitability: If the revenue from your products and services is covering your expenses your are turning a profit however a profit amount wont tell you why your company profitable. By calculating and comparing a handful of financial metrics, you can identify the areas of your business that are working well- and those that need improvement.
Year
Description
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Gross Sales
100000
100500
101500
103500
108500
118500
133500
153500
183500
223500
273500
Sales on return
20000
20500
21500
23500
28500
38500
53500
73500
103500
143500
193500
Net Sales
80000
80500
81500
83500
88500
98500
113500
133500
163500
203500
253500
Cost of Goods sold
40000
40500
41500
43500
48500
58500
73500
93500
123500
163500
213500
Gross Profit
40000
40500
41500
43500
48500
58500
73500
93500
123500
163500
213500
Total Operating expense
10000
10500
11500
13500
18500
28500
43500
63500
93500
133500
183500
Profit
30000
30500
31500
33500
38500
48500
63500
83500
113500
153500
203500
Year
Description
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Gross Sales
100000
100500
101500
103500
108500
118500
133500
153500
183500
223500
273500
Sales on return
20000
20500
21500
23500
28500
38500
53500
73500
103500
143500
193500
Net Sales
80000
80500
81500
83500
88500
98500
113500
133500
163500
203500
253500
Cost of Goods sold
40000
40500
41500
43500
48500
58500
73500
93500
123500
163500
213500
Gross Profit
40000
40500
41500
43500
48500
58500
73500
93500
123500
163500
213500
Total Operating expense
10000
10500
11500
13500
18500
28500
43500
63500
93500
133500
183500
Profit
30000
30500
31500
33500
38500
48500
63500
83500
113500
153500
203500
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