I am having trouble coming up with an idea for an Accounting Class Project. We must come up with a real life financial situation and perform a detailed financial analysis using financial tools from the course. Two examples given would be lease vs buy a car or rent vs buy a condo. Calculations required would be NPV, IRR, Payback, Accrual Accounting Rate of Return. Any ideas for "situation" that would fit this type of analysis other than those already provided? They could be a personal financial decision or for a family or family business.© BrainMass Inc. brainmass.com October 16, 2018, 4:37 pm ad1c9bdddf
In order to perform the financial analysis required, you will need good quantitative data. It might make more sense to select a comparison where good data can be obtained rather than having to manufacture your own only to find that the results are not meaningful.
In following that idea, I would broaden my view to allow for better analysis and team involvement. Here are a couple ...
The solution provides three ideas for an accounting project, and each is explained in a full paragraph.
Draft Project Proposal - Management Accounting and Finance Concepts
Project: The purpose of the project is to apply the concepts and techniques of the module to the analysis of real-world situations or problems. Students are expected to use diverse sources of information and to carry out an original analysis rather than summarize or rehash existing work. Students are encouraged to use situations and data from their own experience where possible.
The task is to prepare and hand in a Project Proposal that includes the nature of the project, the sources of information you plan to use, and the most important concepts and techniques to be applied.
Also, it is required to complete a course project that reveals mastery in application of the management accounting and finance concepts emphasized in the course. This involves reporting on a specific organization within an industry and the management accounting and finance practices that affect the value of the chosen firm or industry. This project should be a formal business report that provides both specific processes and strategies involving budgeting, costing, capital decision making, capital acquisition, and cost of capital structure of the chosen firm. These processes and strategies are to be supported with management accounting concepts.
Your tasks are to:
1. Assess the budgeting process and procedures for the organization with regards to preparation techniques, uses for evaluation, differences between business units/divisions, etc.
2. Analyze how the organization collects, stores, and prepares management accounting information, particularly the use of a management accounting system (MAS) and how information is disseminated throughout the organization,
3. Evaluate the costing process and procedures of the organization with respect to method or approach utilized.
4. Assess the capital decision making process within the organization with regards to what methods are utilized, how such methods are chosen, how projects are selected and managed, and what measures are employed to evaluate performance.
5. Evaluate the criteria or mechanisms used by the organization for deciding how best to acquire capital and analyze the capital structure of the company.
Your response should roughly follow the given outline:
1. Brief description of company
2. Description of firm's budgeting process
3. Management accounting information system
4. Costing process
5. Capital decisions
6. Capital acquisition and structure