Managerial Accounting – Application of Concepts

Choose an organization, such as the place of employment, business patronized, or other situation and describe how that organization either does or does not apply the course concepts on a day-to-day basis. The following course concepts should be discussed:

1. Critical success factors.
2. Identify and discuss the fixed and variable cost.
3. Calculate the Contribution Margin Income Statement
4. Determine and discuss the most effective costing method for your organization.
5. Using the IRR or NPV method calculate and determine if the capital budget project is viable project cost $2million, project life 10 years and cost of capital 13%.
6. Provide a recommendation for the organization

Information needed to complete the capital budgeting portion of the final project:
– Your company expects to save $450,000 per year for the next 10 years by purchasing the supplier.
– The cost of capital is 15%.
– The company believes it’s initial investment to be $2 million.

Grading for the paper is based on the following:

1. Introduction and background describing organization – 10%
2. Discussion of course concepts in context of chosen organization – 65%
3. Conclusion, including degree to which organization incorporates concepts – 10%
4. Quality of writing, including citing sources; and organization of project – 15%

The written paper is to be: typed double–spaced, 1-inch margins, Times New Roman and 12-point font, a 10-page minimum, with correct spelling and grammar, proper citation, references, with a cover page and organized with headings.