Interpret core managerial finance concepts and data.
Analyze operational budget drivers and variances.
Interpret financial decision-making criteria.
Evaluate financing strategies for business operations.
Evaluate operational performance using analytic and comparative techniques.
Devise risk mitigation strategies in financial management.
You are a department manager for a distribution team that packages and ships products from a warehouse location to fulfill customer orders. Your company has been acquired by a larger firm. The new owners are requesting that each department manager prepare a master budget for the upcoming year and submit it for approval. The submission must include a written justification of the requested amount and at least one risk mitigation action to control or reduce costs. The information available to meet this request includes:
The department’s expenses, staffing, and output for the past 12 months;
Metrics, financial and operational, that can be used to compare the department’s performance and output to a department that provides similar distribution support to another division of the company;
One potential efficiency project with two available financing options;
Data on the company’s historic employee practices such as annual raises and bonuses; and
The level of output that the department must meet in the upcoming year based on the new owners’ sales goals.
Using the information provided, as well as relevant economic data researched independently, make decisions about:
The staffing level required to meet the expected output requirements;
The annual raises and bonuses that should be included in the budget;
Whether the efficiency project option should be implemented, and if so, using which financing option; and
The cost control (i.e. risk mitigation) action(s) for implementation.
From your decisions, prepare a master budget for the upcoming year in Excel. Then, prepare a written justification, memo-style, for the budget that discusses your decisions and the rationale for each. Include support for your decisions from your analysis of the data and the financial and operational metrics (historical and expected) as well as at least one external economic or industry source. In the justification memo, include one visual (chart, graph, etc.) created from the data. The purpose and type of visual selected should be based on the data being highlighted. Examples include a summary pie chart of the total budget, a bar chart comparing the department’s historical metrics to the expected metrics with the new budget, or costs across time to implement the efficiency project using the recommended financing options. Submit an Excel file with the new master budget and a justification memo with embedded visual.
Scenario 7 Data
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more