Acc assignment
Hint Sheet
Simple Regression
Step 1: run all revenues against each expense.
Step 2: pick the revenue that is the best explanatory variable for the expense
Multiple Regression
1 Consultant salaries and bonuses
Total revenue from risk assessment consultancy
Total risk management consultancy revenue
2 Travel and related expenses
Large risk assessment revenue
Large risk management consultancy revenue
3 Consulting expenses
Total revenue from risk assessment consultancy
Total risk management consultancy revenue
Major assignment feedback form
Student Name:_____________________ ________Student ID.____________ Mark_____
1. Summary.
• The summary should clearly state the purpose with a brief statement of the forecasting methods used
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2. Spreadsheets.
• They should be constructed according to sound principles of spreadsheet design.
• Tables and graphs should be used constructively and not just for padding.
• Appropriate cell names should be used to make it easier to read formulas.
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3 The use and justification of forecasting methods, the identification of cost drivers and assumptions related to forecasting and cost drivers.
• The forecasting methods used should be appropriate, used correctly, and justified.
• The assumptions should be reasonable and properly explained.
• The methods used to identify cost drivers should be appropriate and justified.
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3. Overall presentation, including table of contents, pagination, overall layout
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General Comments Mark out of 60:_____________
For the fixed expenses, allocated coporate expenses and equipment and vehicle lease expense will be the same as previous number, because the firm will not change their policy in a relatively short time and the previous numbers also remain at a certain level. Trainers' Salaries and General and Admin Exp have a slight change each month, so we can just forecast these expenses in a relatively stable level with some variation, for the former one ranged between 80,500 and 82,000, the latter one being 103,500-105,500 to follow the previous pattern.
As for the four of the semi-variable expenses have regression relationship with their independent revenue variables. Additionally, the degree of fitting is high. Thus regression method should be used to predict the most possible number.
"Training Course Expense"=0.3109*"Training Courses Revenue" -2255.1613
"Consultant Salaries and Bonuses"=0.3529*"Total Revenue From Risk Assessment Consultancy"+ 0.3807*"Total Risk Management Consultancy Revenues" +56648.4232
"Travel and Related Expenses"= 0.25003*"Revenue from Risk Assessment Consultancy Large Clients"+24467.4632
"Consulting Expenses"= 0.0325*"Total Revenue From Risk Assessment Consultancy"+0.0433*"Total Risk Management Consultancy Revenue"+3501.0537
REVENUE
RISK ASSESSMENT
Revenue From Risk Assessment Consultancy Small Clients 179,000 200,000 196,000 170,000 152,000 140,000 140,000 135,000 140,000 140,000 145,000 160,000 170,000 190,000
Revenue From Risk Assessment Consultancy Medium Clients 135,200 109,000 106,900 120,000 124,000 130,000 128,800 130,000 120,000 120,000 115,000 115,000 110,000 90,000
Revenue From Risk Assessment Consultancy Large Clients 100,000 80,000 90,000 90,000 80,000 80,000 88,700 87,100 78,000 76,500 88,000 94,000 70,600 72,000
Total Revenue From Risk Assessment Consultancy 414,200 389,000 392,900 380,000 356,000 350,000 357,500 352,100 338,000 336,500 348,000 369,000 350,600 352,000
RISK MANAGEMENT
Revenue From Small Risk Mgt Consultancies 120,000 144,000 147,000 150,000 147,000 137,000 141,800 151,300 154,500 155,600 158,080 147,300 163,000 165,000
Revenue From Medium Risk Mgt Consultancies 114,000 126,000 128,625 131,250 128,625 124,000 123,200 127,750 131,950 136,150 138,320 128,000 138,000 139,000
Revenue From Large Risk Mgt Consultancies 98,140 98,000 97,270 97,890 96,920 96,730 96,640 96,700 96,750 97,670 97,200 96,930 96,500 97,370
Total Risk Management Consultancy Revenue 332,140 368,000 372,895 379,140 372,545 357,730 361,640 375,750 383,200 389,420 393,600 372,230 397,500 401,370
Total Consultancy Revenue 746,340 757,000 765,795 759,140 728,545 707,730 719,140 727,850 721,200 725,920 741,600 741,230 748,100 753,370
Training Courses Revenue 205,000 210,000 225,000 220,000 220,000 215,000 212,000 210,000 211,000 214,000 212,000 211,000 212,000 210,000
Other Revenue 121,000 122,000 121,800 122,400 121,800 122,000 121,000 122,000 121,800 122,400 122,400 121,800 122,400 121,800
Total Revenue 1,072,340 1,089,000 1,112,595 1,101,540 1,070,345 1,044,730 1,052,140 1,059,850 1,054,000 1,062,320 1,076,000 1,074,030 1,082,500 1,085,170
EXPENSE
Consultant Salaries and Bonuses 329,343 333,088 338,498 333,598 325,437 317,257 319,593 323,992 321,932 323,415 327,611 328,754 330,511 335,091
Consulting Expenses 31,333 32,284 32,446 31,827 31,556 29,840 30,930 30,972 31,219 31,486 31,827 32,033 32,263 32,058
Training Course Expense 61,668 62,153 67,676 66,675 65,853 64,399 64,466 63,338 63,121 63,624 64,308 63,725 64,041 62,672
Trainers' Salaries 80,897 80,663 80,482 80,440 81,860 80,231 80,954 80,504 80,042 80,347 80,635 81,654 80,940 81,800
Travel and Related Expenses 49,148 44,446 47,128 47,366 44,624 43,709 46,931 45,975 44,035 43,361 46,686 47,905 42,327 42,528
General and Admin Exp 104,698 103,628 104,615 104,830 104,000 102,691 103,141 103,305 102,242 103,655 104,428 102,643 104,827 104,737
Equipment and Vehicle lease Expense 50,000 50,000 50,000 50,000 50,000 50,000 50,000 53,000 53,000 53,000 53,000 53,000 53,000 54,000
Allocated Corporate Exp 60,000 60,000 60,000 60,000 60,000 60,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000 80,000
Total Expense 767,087 766,262 780,845 774,736 763,331 748,126 776,015 781,086 775,591 778,887 788,495 789,713 787,909 792,885
Explain the methods used in forecasting expenses