| Management & Financial Accounting |
CASE STUDY
In this case study, students will be evaluated on their ability to analyze, interpret, justify, create ideas, propose viable and ethical solutions, and apply the best alternatives in the areas of managerial accounting and finance. Though basic guides are given below, students have the flexibility to be creative in showing their ability to apply the concepts and methods in managerial accounting and finance where students have to identify and elaborate on issues, create or estimate numbers or cash flows, propose solutions, etc.
THE CASE
It’s year-end and you are an accounting and finance manager with Mr. Tasty Sauce Co., a manufacturing company producing different types of sauces for daily consumption i.e., tomato sauce, chili sauce, soy sauce, etc. The company was doing very well before the Covid-19 pandemic and economic slowdown. But now their business is affected and it’s a recovery phase. Based on the information given, prepare a thorough study on Mr. Tasty Sauce Co. by following the below guides/instructions. You must be specific and relate your answers to your job with Mr. Tasty Sauce Co.
GUIDES / INSTRUCTIONS
1. ABC Costing System
Using ABC Costing System, analyze and propose the areas where the system can assist the top management team and benefit the business in the coming years. The recommendation should be in line with the common objectives of minimizing costs and maximizing profits ethically.
2. Capital Budgeting
The board also requested you to analyze two new business projects that could return the fastest initial outlay. Propose two new business projects, preferably relating to the sauce or food industry, and apply the Payback Period method. Prepare a table with your estimated 5- yearly expected cash flows as illustrated in the notes given. Recommend the best project for the coming years.
3. Dividend Policy
Study the factors in your company that may affect the Dividend Policy. List and elaborate types of dividend policy and propose the most relevant dividend policy for your company. Recommend the best types of dividends i.e., cash or stocks for the shareholders, and explain
