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Managerial accounting cost analysis motomart



The project requires five steps to be presented.

Step 1 – Provide comments on a 5-year Income Statement.

Step 2 – Discuss patterns in expense items.

Step 3 – Identify High/Low activity levels.

Step 4 – Compute cost equations.

Step 5 – Summarize your findings.

  • The Excel file provides a detailed example of what needs to be done for one of the expenses in order to fill out the figures required in Steps 3 & 4. You will include this Excel file as part of your project submission along with the Word document you create to present this project.
    • There is a “60 Months” worksheet that has the 60 months of data already entered. There is also a “Sample” worksheet that an example of how to calculate the R-sq.
    • There is a “PLOT – SALARY” worksheet that shows how the FC, VC and R-sq figures are calculated for Salary.
    • There is also a “high&low” worksheet for help with the high/low method in Step 3.
    • Complete and include the Excel spreadsheet. You will need to create new worksheets for each of the other expenses following the example to calculate the figures needed for Table 5.

In one Word document, provide individual sections for each Step. This Word document along with the Excel file both documents will need to be completed with this assignment.  Please make sure carefully read the instructions so the assignment can completed in its entirely. 


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