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Essay Available:
Pages:
2 pages/β‰ˆ550 words
Sources:
1 Source
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 9.36
Topic:

Operating Budget and Financial Benchmarks for ABC Temp Devices

Essay Instructions:

For this assignment, you will review the following scenario and prepare a written summary of your recommendations.
ABC Temp Devices is a domestic and global producer of temperature monitors. Based upon the influx of domestic and global companies wanting to purchase their temperature monitors, demand has recently skyrocketed. The importance of the managerial accounting department has been brought to the forefront, as they are being asked to provide preliminary information on the new business developments. ABC's major competitor is 123 Engineering Laboratories, located in Pullman, Washington.
Imagine that you are the head of ABC's managerial accounting department. The CEO has asked you to recommend an operating budget and financial benchmarks compared to the leading competitor in the market, as well as recommend a cost system appropriate for the product.
Instructions
Prepare a 2–3 page summary of your recommendations. Be sure to include suitable sources to justify the rationale for your decisions.
Recommend a budget type.
Recommend at least one financial benchmark you think the CEO of ABC should consider. Provide a rationale for your response.
Recommend a cost system appropriate for the product.
Provide an explanation of the budgeting rationale you proposed and why you believe your suggestions will put the company in a better position than the leading competitors. Remember to reference the financial benchmark, budget type, and cost system in your explanation.
Use one source to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source slide at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides.

Essay Sample Content Preview:

ABC Company
Name
Instructor
Institution
Date
Introduction
The company is doing well in the market due to increased product demand. However, there is brewing competition between the company and 123 Engineering, a company that is making some serious inroads in the market and the industry and even threatening to be the leading brand. It is upon the management of ABC to develop viable strategic goals that will help it fend off this stiff competition and ensure that it also remains afloat in terms of business over the long term. For it to do so, there is a need to have a sharper focus on the budget type, financial benchmarks, and a consistent cost system.
Budget Type, Financial Benchmarks and Cost System
There is a distinct separation between the start of the product demand and the company's budgetary allocations. The demand for the products spiked way after the company had already had its budget done. This was through the operating budget. Typically, the operating budget is usually drawn out of the routine business engagements that entail revenue and expenses. There are four main budget types; incremental, zero-based, value proposition, and activity-based budgeting (CFI, 2022). The most applicable in this situation is activity-based budgeting. As the name suggests, this budgeting type aims to constantly adjust to the prevailing market and business environment to create a winning, running schedule.
A cost system helps identify the specific costs that a business incurs. The activity-based costing would be the most applicable in this case, given that it is usually designed for particular cost-allocation projects. However, whi...
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