Objective: The objective of this assignment is to analyze the cost management practices and budgeting processes of a publicly traded company. This focused analysis will help you understand how organizations plan, control, and evaluate their financial resources.
Instructions:
- Company Selection:Each student will select a publicly traded company from the following list (known for straightforward financial structures):
- McDonald’s Corporation (MCD)
- Walmart Inc. (WMT)
- Coca-Cola Company (KO)
- Target Corporation (TGT)
- Costco Wholesale Corporation (COST)
- Cost Structure Analysis:
- Identify and categorize the major cost components (fixed vs. variable, direct vs. indirect) based on the company’s financial reports.
- Analyze the cost behavior patterns over the past two fiscal years.
- Calculate and interpret the company’s contribution margin and break-even point.
- Budgeting Process:
- Describe the company’s budgeting approach based on available information.
- Analyze how the company allocates resources across different departments or segments.
- Identify one specific budgeting challenge the company has faced and how it was addressed.
- Performance Evaluation:
- Compare actual results to budgeted figures for at least one fiscal year.
- Calculate and interpret relevant variances (spending, efficiency, etc.).
- Presentation:
- Prepare a simple presentation (5-7 slides) highlighting your key findings.
- Your presentation should be 5 minutes maximum. Please share the URL to the video where I can watch the presentation.
- Report:
- Submit a concise written report summarizing your analysis.
- The report should not exceed 5 pages (excluding references and appendices).
- Focus on clarity rather than complexity in your explanations.
Grading Criteria:
- Accuracy of cost structure analysis (30%)
- Understanding of budgeting principles (30%)
- Quality of performance evaluation (25%)
- Clarity of presentation and report (15%)
Rubric
A2: Cost Management and Budgeting Analysis – Individual Assignment
| A2: Cost Management and Budgeting Analysis – Individual Assignment | |||||||
| Criteria | Ratings | Pts | |||||
| This criterion is linked to a Learning OutcomeCost Structure Analysis (30 pts) |
|
30 pts | |||||
| This criterion is linked to a Learning OutcomeUnderstanding of Budgeting Principles (30 pts) |
|
30 pts | |||||
| This criterion is linked to a Learning OutcomePerformance Evaluation & Variance Analysis (25 pts) |
|
25 pts | |||||
| This criterion is linked to a Learning OutcomeClarity of Presentation & Report (15 pts) |
|
15 pts | |||||
| Total Points: 100 | |||||||
Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!
This step-by-step guide will help you complete your Cost Management and Budgeting Analysis assignment effectively and confidently. Let’s break it down:
Step 1: Choose Your Company
Pick one of the following publicly traded companies:
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McDonald’s Corporation (MCD)
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Walmart Inc. (WMT)
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Coca-Cola Company (KO)
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Target Corporation (TGT)
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Costco Wholesale Corporation (COST)
Choose a company you are most familiar with or one with publicly available, easy-to-read financial reports.
Step 2: Cost Structure Analysis (2 pages)
Use the company’s most recent two annual reports (10-K) for this analysis.
Tasks:
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Identify major cost components:
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Classify them as fixed vs. variable and direct vs. indirect.
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Analyze cost behavior trends over the last 2 years.
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Calculate:
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Contribution Margin = (Sales – Variable Costs) / Sales
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Break-even Point = Fixed Costs / Contribution Margin Ratio
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Interpret what these numbers mean about the company’s ability to cover costs and scale profits.
Cite the company’s financial reports and at least one scholarly source to support your cost analysis approach.
Step 3: Budgeting Process (1.5–2 pages)
Gather available info from 10-K filings or business publications (Investor Relations page).
Tasks:
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Describe the company’s budgeting approach (e.g., top-down, zero-based, incremental).
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Analyze resource allocation strategies across departments or business segments.
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Identify one budgeting challenge the company faced (e.g., inflation impact, pandemic response) and how it was resolved.
Use industry-specific or peer-reviewed articles to support your insights.
Step 4: Performance Evaluation (1–1.5 pages)
Tasks:
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Select one fiscal year and compare budgeted vs. actual results (use financial summaries and investor commentary).
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Calculate and explain:
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Spending variances (actual cost vs. budgeted cost)
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Efficiency variances (actual input/output compared to expectations)
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Interpret the implications (e.g., over/underperformance and reasons).
If precise budget numbers aren’t published, use revenue projections and analyst expectations from earnings calls or financial sites.
Step 5: Create Your Presentation
Prepare a 5-7 slide deck and record a 5-minute video presentation. Keep it simple, engaging, and informative.
Slide Suggestions:
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Title slide (name, course, company)
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Overview of cost structure
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Contribution margin & break-even analysis
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Budgeting process & challenge
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Performance evaluation with key variances
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Key takeaways
Upload the video to a platform like YouTube (unlisted) and include the URL in your submission.
Step 6: Write the Final Report (max 5 pages)
Summarize your findings clearly and concisely. Use headings to organize by section:
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Introduction
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Cost Structure Analysis
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Budgeting Process
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Performance Evaluation
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Conclusion
Include a reference page (APA 7) for all sources. Use graphs or tables in an appendix if needed.
Step 7: Double Check Against the Rubric
Make sure your report:
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Accurately categorizes costs
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Clearly explains budgeting and a real challenge
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Includes variance analysis
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Is clear, well-written, and professional
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Follows APA formatting
With this guide, you’re set up to excel on this assignment! Would you like help with a specific company’s financial report or sample calculations?
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