| Country : | Australia |
|---|
Assignment Task:
Scenario
You are working as a graduate within the engineering department of manufacturing and consulting focused public listed company. You and your team are working on the post-COVID recovery and how best to allocate capital. Your team has $1,000,000 in the capital at their disposal.
The entire department is going to have a conference call next week and you have been asked to prepare a memo for the team regarding the financial options being considered. As the accounting department will be joining your memo is to prepare the staff for the call.
The accountants are expected to use terms that may not be fully understood by the greater department. So your memo will be distributed before the call or you may be asked to speak on the call to assist everyone's understanding. The memo should discuss each of the following:
1. As there is still uncertainty about employees returning to work the capital may need to be moved from its current interest-bearing account elsewhere. Explain the opportunity cost associated with leaving the money in a bank account as opposed to other investment options that may mitigate that opportunity cost.
2. The stock price of your company has suffered due to the economic downturn. A focus at the company may be to encourage both current and prospective shareholders. Explain one way that the company could deploy company-wide excess capital to directly incentivize these investors.
3. Your company has been using traditional costing and is considering moving to Activity Based Costings for a number of product lines. Explain what is meant by Activity-Based Costings, how it differs from traditional costing, and how it may be advantageous.
4. A new product line is also being proposed and it is expected that the accountants will discuss this option. Explain the difference between fixed and variable costs and state at least three examples of each that the company may incur.
5. Some employees have raised their concern that the new product line will not be profitable and that it will cost more to produce the new product than will be made. Explain the break-even point with particular focus on why a break-even point is not immediate but rather is reached over time.
This Accounting and Finance Assignment has been solved by our Accounting and Finance Experts at onlineassignmentbank. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing style.
Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.
