BUS106 – Accounting for Business Decisions

Assessment Task 2: Business Report

University of the Sunshine Coast

Semester 1, 2026

Weighting: 30%

Task Description

Mark and Paul, university marketing students, face two investment opportunities: opening a restaurant or joining a venture-capital project on the Gold Coast. Prepare a formal business report using the provided template on Blackboard. Analyse both options by preparing relevant budgets, calculating investment appraisal measures, and providing a reasoned recommendation. The report must be your own individual work.

Submission Requirements

1. Submit electronically via SafeAssign on the BUS106 Blackboard site by midnight Friday Week 9.
2. Use the official report template provided on Blackboard.
3. Word count: 1,300–1,800 words (excluding executive summary, tables, and references).
4. Format: 12 pt Arial or Times New Roman, 1.5 line spacing.
5. Minimum five references, including the prescribed textbook; use Harvard referencing style consistently.
6. Include in-text citations and a complete reference list.
7. Apply for extensions only via email to the course coordinator with supporting documentation.
8. Late submissions without approved extension attract penalties per the course outline.
9. No overall conclusion required; end with clear recommendations.

Assessment Criteria

• Accurate preparation and clear presentation of budgets (sales, cash, labour) (25%)
• Correct calculation of NPV, ARR, and payback period with full workings shown (20%)
• Critical analysis of budgets and forecasted information, linking to investment viability (20%)
• Identification and discussion of practical issues relevant to the restaurant investment (15%)
• Balanced comparison of both investments, including suitability for Mark and Paul (skills, time, funds, risk) (15%)
• Professional report structure, academic writing, grammar, presentation, and Harvard referencing (5%)

Report Structure (use template headings)

1. Title Page
2. Executive Summary
3. Table of Contents
4. 1. Introduction
5. 2. Investment One – Restaurant Opportunity
   • 2.1 Nature and scope of the investment
   • 2.2 Budgets (Sales, Cash, Labour) for June–September
   • 2.3 Critical analysis of budgets and forecasts
   • 2.4 Practical issues to consider
6. 3. Investment Two – Venture Capital Opportunity
   • 3.1 Investment appraisal calculations (NPV, ARR, Payback)
   • 3.2 Interpretation of results
7. 4. Comparison and Recommendation
8. References

 The restaurant investment demands significant upfront capital for non-current assets and ongoing working capital for inventory and wages, exposing Mark and Paul to high operational risk and cash flow pressure in the early months. Sales forecasts appear optimistic given seasonal patterns in hospitality, while the cash budget reveals potential shortfalls before revenue stabilises. In contrast, the venture capital option offers diversified risk and higher potential returns, but requires greater initial outlay and passive involvement. The restaurant suits hands-on entrepreneurs with time availability, whereas the venture project better matches limited time and risk appetite (Langfield-Smith et al., 2022, available at https://www.mheducation.com.au/management-accounting-9781760421212-aus-group). Overall the venture capital investment aligns more closely with the students’ current resources and constraints.

References

• Horngren, C.T., Datar, S.M. and Rajan, M.V., 2021. Cost accounting: A managerial emphasis. 17th ed. Harlow: Pearson. Available at: https://www.pearson.com/uk/educational/cost-accounting-a-managerial-emphasis-global-edition-17e.html.
• Langfield-Smith, K., Thorne, H., Smith, D. and Hilton, R., 2022. Management accounting: Information for decision-making and strategy execution. 9th ed. Sydney: McGraw-Hill Education. Available at: https://www.mheducation.com.au/management-accounting-9781760421212-aus-group.
• Sharma, U., 2020. Introduction to management accounting. 2nd ed. Melbourne: Oxford University Press. Available at: https://global.oup.com/academic/product/introduction-to-management-accounting-9780190323196.
• Drury, C., 2018. Management and cost accounting. 10th ed. Andover: Cengage Learning. Available at: https://www.cengage.co.uk/books/9781473748873/.
• Needles, B.E., Powers, M. and Crosson, S.V., 2019. Principles of accounting. 13th ed. Boston: Cengage Learning. Available at: https://www.cengage.com/c/principles-of-accounting-13e-needles/9781337517140.