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:
1.
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)
2.
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.
3.
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.
4.
Performance Evaluation:
· Compare actual results to budgeted figures for at least one fiscal year.
· Calculate and interpret relevant variances (spending, efficiency, etc.).
5.
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.
6.
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
Exceptional Accurately identifies and categorizes major cost components (fixed vs. variable, direct vs. indirect). Provides a strong analysis of cost behavior trends over two years. Contribution margin and break-even point are correctly calculated and well-interpreted. |
23 pts
Proficient Cost components are mostly correctly categorized. Cost trends over two years are analyzed with minor gaps. Contribution margin and break-even analysis are mostly accurate. |
20 pts
Competent Basic cost component identification with some categorization errors. Cost behavior trends are noted but lack depth. Contribution margin and break-even analysis have minor mistakes. |
10 pts
Basic Incorrect or missing cost structure analysis. No meaningful discussion of cost behavior. |
0 pts
No Marks |
| 30 pts |
This criterion is linked to a Learning OutcomeUnderstanding of Budgeting Principles (30 pts) |
30 pts
Exceptional Clearly explains the company’s budgeting approach with strong supporting details. Analyzes resource allocation with depth and accuracy. Identifies and thoroughly discusses a real budgeting challenge and how it was addressed. |
23 pts
Proficient Budgeting approach is well explained but lacks minor details. Resource allocation is analyzed with reasonable depth. Budgeting challenge is identified and discussed with minor gaps. |
20 pts
Competent Budgeting approach is somewhat described but lacks depth. Resource allocation is mentioned but not deeply analyzed. Budgeting challenge discussion is limited. |
10 pts
Basic Budgeting principles are not explained. No analysis of resource allocation or budgeting challenges. |
0 pts
No Marks |
| 30 pts |
This criterion is linked to a Learning OutcomePerformance Evaluation & Variance Analysis (25 pts) |
25 pts
Exceptional Accurately compares actual results to budgeted figures for at least one year. Key variances (spending, efficiency, etc.) are correctly calculated and well-explained. Strong interpretation of financial implications. |
20 pts
Proficient Budget-to-actual comparison is mostly accurate with minor errors. Variances are calculated correctly but analysis lacks depth. |
15 pts
Competent Budget-to-actual comparison has noticeable gaps. Variance analysis is attempted but with some calculation errors. |
7 pts
Basic No performance evaluation or variance analysis provided. |
0 pts
No Marks |
| 25 pts |
This criterion is linked to a Learning OutcomeClarity of Presentation & Report (15 pts) |
15 pts
Exceptional Report is clear, concise, and well-organized. Presentation (slides and video) is professional, engaging, and visually effective. Information is well-structured and easy to follow. |
12 pts
Proficient Report and presentation are clear and mostly well-organized. Minor issues with clarity or engagement. |
9 pts
Competent Report and presentation have some structure issues. Explanations lack depth. |
5 pts
Basic Report and presentation are unclear, incomplete, or missing. |
0 pts
No Marks |
| 15 pts |
Total Points: 100 |
