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Cost Function Estimates for Bookkeeping Franchise Opportunity

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Developing Cost Function Estimates for My Bookkeeping Franchise Opportunity

Continue work on your project by developing cost function estimates for your selected franchise opportunity. Use the methods: account classification, high-low, and regression analysis methods.

How valid are the cost function estimates that you generated? Which method provided the best estimate? Why?

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Running Head: Analyzing Bookkeeping Office Franchise

Analyzing Bookkeeping Office Franchise
Barbara Braxton
Walden University
Harold Okere
Financial Management Tools for Decision-making (ACCT - 6120 - 3)

Analyzing Bookkeeping Office Franchise
Bookkeeping office franchise is one of the fastest growing franchises in the world. This is mainly due to the fast growth of small businesses that have less than 19 employees over the past two decades and often rather than employ a full time accountant, make use of part time bookkeepers (Teixeira, 2010).
The bookkeeping office that I intend to open will focused mainly on outsourced accounting services to these small businesses that need part time bookkeepers. The bookkeeping franchise will in particular strengthen the franchise systems of small businesses through provision of cost effective bookkeeping services, quality assurance, tax readiness, consolidated reporting, consulting and outsourced CFO services. Its main aim is to provide analyze and provide timely, relevant, accurate and secure financial data to businesses to that will be helpful in maximizing the performance of the businesses. The business will not only maintain books and generate financial reports, but will also help franchisees to better understand how to read and interpret financial information.
Opening this franchise will require research and analysis on the costs that will be incurred. Shown below is the cost-volume-profit analysis model for the bookkeeping office franchise and the estimate of the break even sales and units.
Cost-Volume-Profit model analysis for bookkeeping ...

Solution Summary

The expert develops cast function estimates for bookkeeping franchise opportunities. The valid cost function estimates are examined.