Page 1 of 16
MBA Assignment Two
Accounting for Managers
Written by {Author Removed} {Author Removed} { Removed} Registration Number
{ Removed}
Prepared for Mark Makepeace ? Management Centre
Word Count: 3857
Page 2 of 16
Contents Page
1. Assumptions made in order to complete assignment
2. Ratio Analysis of Company "X"
3. Ratio Analysis of Company "Y"
4. Ratio Analysis of Company "Z"
5. Summary of ratios
6. Overview
7. Marginal and Absorption Costing
8. Summary
9. Bibliography
Page 3 of 16
Assumptions
In order to complete this assignment, the following assumptions have been made.
1. A similar sales figure for all three companies has been assumed and this is
illustrated in the appendix 1. Although in reality, a similar sales figure would
not be the case. Whilst a sales figure is not vital in answering the question, this
helped me in my thinking.
2. The figures represented in appendix 1 are of course purely arbitrary and have
been included purely to illustrate my thought process and support the
assignment. I have based these figures on a mean average sales figure of
£13.4bn. This being a sales average for Tesco, Sainsbury and Safeway for
2002. Whilst the assignment question did not indicate the type, size and nature
of the food retailer in question. I looked to these businesses as an indication.
(a) Tesco £12.7Bn (based on 24 week period)
(b) Sainsbury's £18.1Bn
(c) Safeway £9.5Bn
3. That the net profit ratio relates to net profit before tax and any dividend.
4. That debtors would be negligible, as retail tends to be cash orientated business.
5. Stock, Creditor and Debtor figures are based on 365 days.
6. Return on Capital Empl ...