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ACN202 Term Paper Section 12

The document outlines the requirements for a term paper on master budget preparation for a startup company in various sectors. It specifies the components of the budget to be prepared, including sales, production, cash collection, and various expense budgets, along with assumptions regarding cash flow and financing. Formatting guidelines and submission details are also provided, with a deadline of December 24, 2024.

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29 views

ACN202 Term Paper Section 12

The document outlines the requirements for a term paper on master budget preparation for a startup company in various sectors. It specifies the components of the budget to be prepared, including sales, production, cash collection, and various expense budgets, along with assumptions regarding cash flow and financing. Formatting guidelines and submission details are also provided, with a deadline of December 24, 2024.

Uploaded by

2030907
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ACN202: Management Accounting [Section 12]

Term paper on Master Budget Preparation Autumn 2024


Sectors: Engineering, Ceramic and Cement, Textiles, Real estate, and Services.
Goal: you are required to prepare a master budget covering the following heads for a startup company
(hypothetical/actual).
1. Sales budget
2. Schedule of expected cash collection
3. Production budget/purchase budget
4. Direct materials budget
5. Schedule of cash disbursement
6. Direct labor budget
7. Manufacturing overhead budget
8. Selling and administrative expense budget
9. Ending inventory budget (if required)
10. Cash budget
Time span: You will prepare a cash budget covering any three months and you will show the total for the
particular quarter.
Assumption:
i. You must have both in cash and on account sales. Collection of account receivables should follow
three months rotation and put your total percentage in all three months rationally. To have this
policy in enforce, keep sufficient accounts receivable in earlier months.
ii. Purchase payment will be made in three months as well. Put your payment over three months
rationally. To have this policy in enforce, keep sufficient accounts payable in earlier months. iii. Additional
conditions: You will create the situation where the company will borrow/organize a line of credit to show
the context of taking and repaying loans with interest. Rate of interest can be variable.
iv. Non-cash expenses: You must show the non-cash items such as depreciation/amortization etc. when
you create your manufacturing overhead budget/Selling and Administrative expense budget. v. Additional
years/quarter data: You can keep additional sales (in unit/amounts) and additional raw materials to
create/manage ending inventory/raw materials to prepare your current quarter budget. vi. Record some
purchase of equipment, land and building in the first and second month respectively. vii. Record dividend
payment in the second month.
viii. Put a minimum cash balance policy for the company and open a line of credit with the financing
company to borrow from them.
ix. Create a situation in the first and second month for deficit and then borrow money from sources to
meet minimum cash balance.
Formatting requirements:
I. Times new roman (12ft) justified in all pages.
II. No page limit.
III. Space should be with 1.5 on all pages.
IV. Do not copy from others. 0 marks will be given if proved copied/plagiarized.
V. You can color (any)/BOLD any section/line/word/sentence to emphasize your message. VI.
Please submit your plagiarism scanned report and attached at the end of your report. VII. Your
report name will be as follows: student name_ID_Section_11/12/_Term paper_2024.

Submission date: 24th December 2024 [last minute: 11:59pm]

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