Assessment Task Set up an New Business (Rstuarant)

Assessment Format Business Report to a Bank Manager 30% weighting

“1 minute Funding Pitch” 20% weighting

Word limit Max. 1,500

Learning outcomes to be examined in this assessment

1. Understand the scope and purpose of management accounting.

2. Analyse the nature and structure of financial costs and problems of calculating them.

3. Identify methods of calculating present and future profitability of business organisations, and how

financial risks of change can be evaluated.

Assessment criteria Explanatory

comments on the assessment criteria

Maximum marks for each section. Content, style, relevance, originality.

Relevant, accurate content, demonstrating research, as required by Assessment Task above.

Great emphasis will be placed on originality – work which is clearly student’s own.

See assignment for specific allocation of marks

Format, referencing, bibliography

Full text referencing and bibliography preferably using the Harvard citation method

See assignment for specific allocation of marks

Constructive critical analysis with assumptions and application of concepts,

introduction, conclusion Identifying and demonstrating an understanding of the relevant

accounting concepts.

Demonstrating the ability to use in the correct business context.

Section A:

‘One (1) minute Funding Pitch’ 20% weighting

Prepare a short presentation to be delivered to the bank manager (Lecturer) to secure the

funding required for your business idea and product. It should last no more than one (1)

minute and include the following:

1. What type of business you have chosen from the list in Section D below (Restaurant)

2. Which product you will make and sell and its relevant manufacturing (production)

READ ALSO : Economics

costs and its selling price.

3. How many do you intend to make and sell in a year and where is your target market

4. How much funds are you looking to raise, how will you use this money and how will

you pay it back if successful?
Using the template provided in Section E, prepare for your pitch by completing the various

sections and hand it to the Bank Manager (Lecturer) when you start your pitch. You are to

treat it as a real business meeting, where clarity, accuracy, timing, delivery and manners

are as important as the actual idea.

Marking Scheme is provided in Section F.Section B:

Business Report 30% weighting

Your assignment also requires you to provide a formal business report max 1,500 words,

to your Bank Manager regarding the launch of the same business that you presented in

your marks for this section. Any extenuating circumstances should follow proper procedures.

Introduce your business and your idea to the bank manager and ensure you state how

much you intend to borrow and how you intend to make repayments.

State your chosen business and what products you intend to sell and the cost price to

produce it and its intended selling price. Provide in your own words, background as to

the general price of these or similar goods available in the London area and who are

the competitors. Include sources for your research, and avoid making general

assumptions or remarks about the industry/market – the reader is more interested in

the financial aspects than the aesthetics of the product. (max 350 words),

Explain in your own words how you arrived at the figures for each cost with supporting

assumptions regarding cost behaviour (fixed or variable), measurements, quantities

(including demand) and prices and also an explanation regarding which method of

pricing you used to arrive at the target selling price and the underlying assumptions to

support your figures for break even point. (max 550 words),

Provide a suitable summary of the business report remarking on the figures from your

calculations and business documentation (appendices) (max 200 words).

Marks 5% Reflecting on your overall learning experience briefly discuss what you have gained

from undertaking the tasks in this assignment. Particularly how have you managed

your time, application of concepts covered in lectures and skills you have developed by

carrying out the pitch and report? (max 100 words).

Marks will be awarded for innovation, originality of approach, report format & structure,

relevant references and quotations from suppliers if applicable and general

presentation

Section C Appendices to the Business Report:

Produce a per unit cost statement showing the main costs groups involved and the

calculation for target selling price.

• Calculate a breakeven point.

• Prepare a One (1) Year Operational Budget based on your cost structure and

• production/sales pattern.

• Prepare a Five Year Budget Income Statement using marginal costing principles and

• the following information:

• Your market is growing by 3.5% each year – only your sales and variable costs

• will be affected

• You should plan to reduce fixed costs by 10% year on year

• Ignore Taxation