INSTRUCTOR: MR. RAKIBUL HASAN LECTURER, SCHOOL OF BUSINESS NORTH SOUTH UNIVERSITY
NAME SAJEDUL HAQUE NAZIA NADVY CHOUDHRY ANIKA SULTANA
ID# 1120359030 1111087030 1120416030
SECTION 11 11 11
Page | 1
TOPIC: A MASTER BUDGET FOR A MANUFACTURING LOCAL STORE SELECTED STORE NAME: SHOJIB TEA STALL LOCATION: GANDARIA, GANDARIA RAILWAY STATION DATE OF SUBMISSION: 21ST DECEMBER, 2012
Page | 2
Letter of Transmittal
21st December, 2012 Mr. Rakibul Hasan Lecturer School of Business North South University Plot# 15, Block- B, Bashundhara Residential Area, Dhaka- 1213.
Subject: Submission of ACT- 202 group assignment.
Dear Sir, We have been assigned to prepare a master budget for a manufacturing local store for the year of 2012, as per the requirement of the course curriculum of ACT-202. In this assignment, we tried our level best to include all the key concepts, relevant information and explanations of the Budget schedules, which we have learned throughout semester properly. We have also showed the application of ABC system for that store for the year of 2012. To make this assignment enriched, we fulfilled the entire outline which was given at the class .The most important thing; we took a face-to-face interview of the owner of the store and tried greatly to bring out the most trustworthy answer throughout a proper questionnaire. As you go through the contents, you will find our endeavor in the overall assignment clearly. It was a very enriching and enthralling experience for us to prepare the whole task. Thank You for giving us such a wonderful opportunity. Sincerely Sajedul Haque Nazia Nadvy Choudhury Anika Sultana
Page | 3
The assignment mainly deals with the Budgeting style of a small manufacturing local store & the application of ABC system for that store for the year of 2012. In this report we tried to prepare a master budget of a tea stall for the year of 2012. We have also showed the application of ABC system for that tea stall. According to the lecture in the class and the key elements from chapter8&9, we prepared the whole format. The master budget is consists of 10 schedule of different parts of the budget and also with a budgeted income statement and balance sheet. First of all, the report contains an introduction part, the reasons behind the selection of this store, background of the store, location of the store, primary products etc. Secondly, the report contains the whole budget of the store with specific schedule of different elements that are included in the whole budget format, an income statement and balance sheet and finally we ends up with the application of ABC system for the store for year of 2012.
Page | 4
Introduction Reasons behind the selection Budget flow chart The budget schedule ( Full Process) Income statement Balance sheet The application of ABC costing system References Appendix
06 06 07 08-18 19 20 21-26 27 28
Page | 5
The Tea Stall was founded by Md. Shojib in 2005. The store is mainly located at Gandaria, near Gandaria Railway Station. Actually there is no specific name of his tea stall. But everyone in that area knows his tea stall as “Shojib’s tea stall. The Business is conducted by Sajib and his brother. He has also an employee to run the business. The store opens at 7.00 am in the morning and continues till 11:00 pm. The owner Shojib and his brother always keep a good relationship with their customer and that’s why they are famous in the area. As the location is very suitable for business, so the competition is very high. They worked really very hard to generate profit. The owner Shojib is a successful business man in his area. He sells almost 360 cups of tea in a day. Besides making and selling tea, he also sells some other items like biscuits, cigarettes, chocolates etc. But tea is the only item, he produces and sells. So the...