Prepare a preliminary cost benefit analysis, Cost Accounting

Managers need financial information to help them make decisions, communicate important information about their organization, and demonstrate fiscal responsibility to stakeholders.  The purpose of this assignment is to familiarize you with preparing and justifying budgets.  This assignment will count for 20% of your final grade.

This assignment requires the use of simple functions in Excel and you should take advantage of these basic formula capabilities.  For example, features like the SUM formula and the "insert sheet" button (for presenting multiple worksheets) will be useful for completing the assignment.  See the Excel Tutorial above for help in remembering these formulas.

Scenario:  Imagine you are the manager of an information resource center in a mid-sized "parent" organization.  Some examples of information resource centers could be: a medical collection in a hospital; a special library in the research & development section of a pharmaceutical company; an archive in a museum; a genealogical collection in a historical society; a school media center in an elementary or high school; a rare book collection in a university library; a business information service in a public library, etc.

Users/Services:  Information resource center users can include organization staff and external users or clients.  Currently users and/or clients come into the resource center and ask for material to be sent to them or they ask for quick answers to simple research or reference questions over the telephone and through email.  The center staff provides a weekly email news briefing covering items of interest to its users and/or clients.  Additionally, center staff collects user data, makes a list of answers to frequently asked questions based on that data, and updates the FAQs regularly.

Collection:  The center has a basic reference collection and a number of subscriptions to online information resources.  If anybody needs highly specialized information, the cost of procuring that information comes out of the parent organization's budget, not from the center, even though the center's staff may identify and procure the specialized information.  New reference material is purchased if it is of general interest or the current material is out of date.

Staff:  Center staff includes: one full-time information professional, one part-time para-professional, and one full-time clerical assistant.

Budget:  The current year operating budget for the center is shown below:

Subscriptions and books                                                                           $ 156,000.00

                Supplies (including photocopies)                                                   9,300.00

                Phone, fax, postage                                                                      4,500.00

                Staff travel                                                                                    1,200.00

                Salaries                                                                                         107,400.00

                Fringe benefits @ 38% of salaries                                                40,812.00

                Organizational overhead @ 21% of non-salary expenses            35,910.00

Assignment:  As part of the newly revised budget process, you have been asked to demonstrate how the center is contributing to the overall organizational mission by developing a program budget for the resource center that ties expenditures to program goals.  To do this, you will need to 1) define a set of appropriate goals for the resource center; 2) identify the resource center programs/services that support these goals; and 3) determine how the direct and indirect costs should be allocated among these programs.  Your goal in presenting your budget is to make the best case you can for the programs/services you need to provide-this involves showing that the resources you are requesting are allocated in the most cost-effective manner possible.

Next, you need to develop and justify an allocation for a new service or product and prepare a preliminary cost benefit analysis for this new service or product.  Finally, as part of the budget process you have also been asked to suggest appropriate salary increases for the staff.  You must support all your recommendations.

Posted Date: 2/16/2013 6:58:08 AM | Location : United States







Related Discussions:- Prepare a preliminary cost benefit analysis, Assignment Help, Ask Question on Prepare a preliminary cost benefit analysis, Get Answer, Expert's Help, Prepare a preliminary cost benefit analysis Discussions

Write discussion on Prepare a preliminary cost benefit analysis
Your posts are moderated
Related Questions
i.   Identify the organization ii.  Identify the stakeholders iii. Give the major requirements for the IT application iv. Reflect on how difficult it was to do the require

In a given period production and cost data were as follows:     Total Costs   Materials   Rs. 5,115                      Labour          3,952                     Overheads

Fixed Budgeting The master budget discussed before is a fixed budget. A fixed budget is defined via as: 1. Just one level of activity 2. Not adjusted to re

Shubenacadie Inc. is currently considering a project with a 5-year life that it believes has the potential to return the company to profitability. Based on the results from a marke


At the end of Ehlinger Department Store's fiscal year on December 31, 2012, these accounts appeared in its adjusted trial balance: Freight-In $ 7,200

limitations in cost plus pricing

MARGINAL COSTING As per the Chartered Institute of Management Accountants, London, the phrase 'Marginal cost' means - 'the amount at every given volume of output through which

Analysis of stockholders equity: Star Corporation issued both common and preferred stock during 19X6. The stockholders' equity sections of the company's balance sheets at the

British Columbia Lumber has a Raw Lumber Division and a Finished Lumber Division. The  variable costs are: 1.Raw Lumber Division: Rs. 100 per 100 board-feet of raw lumber 2.F