13 May A2: Cost Management and Budgeting Analysis – Individual Assignment
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%)
