University Of Sunderland And Management Development Institut

University Of Sunderlandandmanagement Development Institute Of Singapo

University Of Sunderlandandmanagement Development Institute Of Singapo

UNIVERSITY OF SUNDERLAND AND MANAGEMENT DEVELOPMENT INSTITUTE OF SINGAPORE ________________________________________________ Course : Bachelor of Arts (Hons) Business and Management (Top- Up) BAMD5 2208A_BAMD5 2209A Module : UGB 253 Management Accounting for Business MDIS Module Tutor : Mr. Lim Kaim Soon Assessment : Individual Assignment Due Date : 11 November 2022 Duration / Word Length : 3,000 words +/- 10% Please refer to AQH-F15 Guidance for Students on the Penalty for Exceeding the Limit for Assessed Work. Weighting within Module : 100% ______________________________________________________ Assignment Submission Students are required to submit their Turnitin© originality report coursework through JIRA.

Only assessments submitted through JIRA will be marked. Any other submission including submission to your study centre in hard copy will be treated as a non-submission. PLAGIARISM/INFRINGEMENT STATEMENT All Assessments are subject to the University’s Policy on 'Cheating, Collusion and Plagiarism'. Students found guilty of this are subject to severe penalties. This is an INDIVIDUAL piece of work - If there is evidence that the work is not wholly attributable to you, the University's policy on 'Cheating, Collusion and Plagiarism' will be applied Link to University Academic Integrity and Misconduct Policy • REQUIREMENTS Students must answer all questions within the assessment.

The assignment has been designed to cover the following learning outcomes associated with successful completion of the module: Knowledge 1. Investigate a range of key management accounting models and concepts. 2. An understanding of specific analytical skills in key areas within management accounting found in the UK and international level. 3. Compare and contrast of the role and scope of management accounting theory. Skills 4. Analysis the key management accounting concepts and techniques in order to contribute to successful decision making in an organisation. Learning outcomes: The assignment covers all module learning outcomes. Students should approach this assignment as an academic essay, weighing the arguments for and against each issue, making comment on the literature and drawing logical conclusions.

Academic referencing using the Harvard referencing approach is a key requirement of the assignment to demonstrate wider reading and to underpin the discussions, ensuring they have relevant depth. Students are encouraged to be inquisitive and innovative in their approach as to what should be included in this report. Assignment brief: Answer all three questions Question 1 “The conventional cost accounting systems are often unable to identify correctly the true costs of processes. Consequently, management and quality professionals are unable to make sound decisions or make decisions based on the misrepresented data.†- Ashford C. Chea (2011) a) Demonstrate and discuss the theoretical criticism of the conventional cost accounting system. b) Discuss the alternative costing system that could substitute the conventional cost accounting system. c) Outline the practical problems that may be encountered in implementing each technique in any industry and comment on how they may be overcome.

This should be approximately 1,400 words. In this section students should demonstrate both knowledge and understanding of the costing approaches within theoretical viewpoints. The response should attempt to incorporate a critical perspective through relevant academic referencing, rather than overly describing the model. The evaluation should be supported with appropriate empirical research that has been performed within this area and should be referenced as per Harvard referencing requirements. The response should also demonstrate an ability to incorporate real-life practical business. (Total 40 Marks) Question 2 “Performance measurement includes the objective and subjective assessments of the performance of both individuals and subunits of an organization such as divisions or departments.

Performance evaluation is the process of attaching value weights to various measures of performance to represent the importance of achievement on each dimension.†- Michael C. Jensen, William H. Meckling. Critically evaluate the above statement. In your work, you should provide theoretical viewpoints and empirical findings with respect to the performance measurement covering the following points: a) the performance measurement and evaluation system, b) the performance measurement and strategic information management, and c) the linkage between the performance measurement system and the budget implementation This should be approximately 1,400 words.

In this section students should demonstrate both knowledge and understanding of the performance measurement theoretical viewpoints. The response should attempt to incorporate a critical perspective through relevant academic referencing, rather than overly describing the model. The evaluation should be supported with appropriate empirical research that has been performed within this area and should be referenced as per Harvard referencing requirements. The response should also demonstrate an ability to incorporate real-life practical business examples, addressing whether similar companies implement effective and appropriate performance measurement system. (Total 40 Marks) Question 3 (a) Alpha Limited in producing and selling plastic pen cases.

The average selling price is $12 per unit. The production units is a mixed cost. Please refer to the past monthly data below. Month Units Total Cost 1 2,500 $22,,800 $21,,400 $23,,800 $19,,100 $15,,300 $14,200 a) Calculate the variable cost per unit. b) Calculate the fixed cost. c) If the company produces 1,900 units in month 7, what would be the projected total cost? d) Find the breakeven quantity. e) The company plans to produce and sell 2,000 units in month 8. If the target profit is $10,000, find the revised selling price. (1 mark each, total 5 marks) (b) It is now Quarter 2 of 2022.

Yamada Limited is the business of manufacturing and selling plastic storage containers. Currently, all sales are generated locally through its show room in the Great World Shopping Centre. Locally, this business is very competitive, with 12 companies selling similar products. Therefore, it is expected that the revenue growth will be slow in the coming years. The company is preparing 2023 annual budget.

The following information is provided to help you, the budget planner, to prepare an annual budget for 2021 for the company: 1. The marketing and sales department manager provides the following sales forecasts: Q4 Q1 Q2 Q3 Q4 Q1 Q2 Expected sales, units 1,000 1,100 1,130 1,160 1,200 1,220 1,250 Unit selling price . It is projected that: 60 percent of a quarter's sales are collected in the quarter of sales. 35 percent of a quarter's sales are collected in the following quarter. 5 percent are uncollectible.

3. Production budget stipulates that the finished goods’ desired ending inventory for the quarter will be 5 percent of next quarter's sales. 4. Each unit produced requires 2 kg of materials at a cost of $12 per kg. 5.

Desired ending inventory of materials will be 10 percent of next quarter's materials needed for production. 6. Purchases are paid according to the following schedule: 40 percent of a quarter's purchases are paid for in the quarter of purchase 60 percent of a quarter's purchases are paid for in the following quarter. The outstanding accounts payable as at the end of 2020 shall be $9,000. 7.

Direct labour is projected at 8 direct labour hours per unit at $8 per hour. All direct labour costs are paid for in the quarter incurred. 8. The factory overhead budget information are as follows: Variable overhead budget is projected at $5 per direct labour hour. Fixed factory overhead budget is at $2,500 per month.

All overhead costs are paid for in the quarter incurred. 9. The company plans to launch a marketing campaign to promote new products. The projected marketing expenses incurred and paid in the quarter 3 is $50,000. 10.

The selling and administration costs incurred and paid are as follows: 2023 Q1 12, Q2 15, Q3 20, Q4 25,. The company plans to invest $60,000 each in quarter 2 and 3 for new equipment. This investment budget is to comply with the environmental regulations. 12. The opening cash balance for Quarter 1 is $25,000.

13. The target minimum monthly ending cash balance is $25,000. In order to achieve this cash balance level, the firm has an overdraft facility with the DBS Bank, offering a line of credit facility of $100,000 at 5% interest per quarter on outstanding balance. Interest is payable in the following quarter when incurred. Required: Write a report to Mr Jeremy Tan, the chief executive officer, of the following: (i) Prepare the following quarterly budget for 2023: 1.

Revenue budget and sales collection budget (3 marks) 2. Production, material usage and payment budget (3 marks) 3. Factory overhead budget and direct labour budget (3 marks) 4. Cash flow budget (3 marks) (12 marks) (ii) Do you think the budgets prepared in (a) will be approved by the management? State your reasons clearly. (Maximum 200 words, 3 marks) (Total 20 marks) Your assignment should aim to provide readers with comprehensive knowledge and critical reviews of these areas covering, for example: • Knowledge of variety of topic related to management accounting within the concept of decision making by managers. • Knowledge of the role and scope of management accounting theory and identifying the costs and benefit that is relevant to a particular decision within the business. • Any other important issues which you think should be addressed Further details: Students should approach this assignment as an academic essay, weighing the arguments for and against each issue, making comment on the literature and drawing logical conclusions.

Referencing should form part of the assignment to demonstrate wider reading and to underpin the discussions, ensuring they have depth. Students are encouraged to be inquisitive and innovative in their approach as to what should be included in this report. The following may be of some use in providing guidance as to what could possibly be included, although this is in no way meant to be prescriptive. The aim of the assignment is to help you understand the key areas of management accounting using extracts, examples and approaches to management accounting. This will include investigating topics from throughout the course linked to the above issues.

Some of the principles, concepts and models will be more relevant to your chosen approach than others and so it is likely that different students will formulate different approaches to the problems. This is normal, it is not expected that all of the course content will be used in the analysis, concentrate on that which you feel is most important. As part of your work you might find it helpful to briefly explore the underlying theory behind the key areas of investigation that you identify before applying them to report. With a total of 3,000 words you do not have a lot of room for long introductions so assume you are writing to a sophisticated audience who has a working knowledge of management accounting and is well versed in business theory.

Please avoid relying too heavily on descriptive sections reproducing information available from course material or the set text. Further research and the use of current or recent media announcements are encouraged to further examples and add strength to the management accounting. FORMAT GUIDE: • All text should be in a clear font such as Arial or Times New Roman; • All text should be 12-point except for headings. • Text should be in a single column and left-aligned; • 1.0 or 1.5 spacing between lines, including appendices and bibliography, but excluding quotations, footnotes or captions, which may be single-spaced. • References: Harvard Marking Guide: Marks will be awarded with respect to the following assessment criteria.

Undergraduate Assessment Criteria 08/5/5.5 These should be interpreted according to the level at which you are working Categories Grade Relevance Knowledge Analysis Argument and Structure Critical Evaluation Presentation Reference to Literature P as s 86 – 100% The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge, understanding and skills appropriate to the Level of the qualification. There is also unequivocal evidence showing that all the learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this level it is expected that the work will be exemplary in all the categories cited above. It will demonstrate a particularly compelling evaluation, originality, and elegance of argument, interpretation or discourse.

76-85% The work examined is excellent and demonstrates comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also excellent evidence showing that all the learning outcomes and responsibilities appropriate to that level are fully satisfied. At this level it is expected that the work will be excellent in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse. 70 – 75% The work examined is of a high standard and there is evidence of comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is clearly articulated evidence demonstrating that all the learning outcomes and responsibilities appropriate to that level are satisfied At this level it is expected that the standard of the work will be high in the majority of the categories cited above or by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse.

60 – 69% Directly relevant to the requirements of the assessment A substantial knowledge of relevant material, showing a clear grasp of themes, questions and issues therein Good analysis, clear and orderly, with consistent links from analysis to solutions of problems in a work context. Generally coherent and logically structured, using an appropriate mode of argument and/or theoretical mode(s) May contain some distinctive or independent thinking; may begin to formulate an independent position in relation to theory and the application of practice in a work context. Well written, with standard spelling and grammar, in a readable style with acceptable format Critical appraisal of up-to- date and/or appropriate literature.

Recognition of different perspectives. Very good use of source material. Uses a range of sources 50 – 59% Some attempt to address the requirements of the assessment: may drift away from this in less focused passages Adequate knowledge of a fair range of relevant material, with intermittent evidence of an appreciation of its significance Some analytical treatment, but may be prone to description, or to narrative, which lacks clear analytical purpose, and which does not consistently link analysis to solutions of problems in a work-based context. Generally coherent and logically structured, using an appropriate mode of argument and/or theoretical mode(s) May contain some distinctive or independent thinking; may begin to formulate an independent position in relation to theory and the application of practice in a work context. Well written, with standard spelling and grammar, in a readable style with acceptable format Critical appraisal of up-to- date and/or appropriate literature.

Recognition of different perspectives. Very good use of source material. Uses a range of sources 40 – 49% Some correlation with the requirements of the assessment but there are instances of irrelevance Basic understanding of the subject but addressing a limited range of material Largely descriptive or narrative, with little evidence of analysis which links to solutions of problems in a work-based context. A basic argument is evident, but mainly supported by assertion and there may be a lack of clarity and coherence Some evidence of a view and a very basic evaluation of the appropriateness of approaches to problem-solving in a work context starting to be formed but mainly derivative. A simple basic style but with significant deficiencies in expression or format that may pose obstacles for the reader Some up-to-date and/or appropriate literature used.

Goes beyond the material tutor has provided. Limited use of sources to support a point. Fa il 35 – 39% Relevance to the requirements of the assessment may be very intermittent, and may be reduced to its vaguest and least challenging terms A limited understanding of a narrow range of material Heavy dependence on description, and/or on paraphrase, is common, poor evidence of linking analysis to proposed solutions of problems in a work-based context. Little evidence of coherent argument: lacks development and may be repetitive or thin Almost wholly derivative: the writer’s contribution rarely goes beyond simplifying paraphrase and does not adequately evaluate the appropriateness of different approaches to solving problems in a work context.

Numerous deficiencies in expression and presentation; the writer may achieve clarity (if at all) only by using a simplistic or repetitious style Barely adequate use of literature. Over reliance on material provided by the tutor. The evidence provided shows that the majority of the learning outcomes and responsibilities appropriate to that Level are satisfied - For Compensation consideration. 30 – 34% The work examined provides insufficient evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence provided shows that some of the learning outcomes and responsibilities appropriate to that Level are satisfied.

The work will be weak in some of the indicators. 15-29% The work examined is unacceptable and provides little evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence shows that few of the learning outcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in several of the indicators. 0-14% The work examined is unacceptable and provides almost no evidence of the knowledge, understanding and skills appropriate to the Level of the qualification.

The evidence fails to show that any of the learning outcomes and responsibilities appropriate to that Level are satisfied.

Paper For Above instruction

The assignment involves a comprehensive analysis of critical aspects within management accounting, focusing on managerial decision-making, theoretical frameworks, and practical applications. The three questions selected cover crucial domains: costing systems, performance measurement, and budgeting processes, each fundamental to effective management control and strategic planning.

Question 1: Criticisms and Alternatives to Conventional Costing

Conventional cost accounting systems, primarily based on traditional overhead absorption approaches, have long been critiqued for their inability to accurately assign costs to individual products or processes. Ashford Chea (2011) asserts that these systems often misrepresent true costs, leading to flawed managerial decisions. The core criticism of traditional systems relates to their reliance on volume-based cost drivers, such as direct labor hours or machine hours, which can distort costs in complex, modern production environments where multiple products with varying resource consumptions are produced simultaneously.

One fundamental theoretical criticism is that conventional systems assume a linear relationship between overhead costs and volume measures, which does not account for the complexities of contemporary manufacturing processes. This can lead to overcosting in low-volume products and undercosting in high-volume products, thus misguiding pricing, budgeting, and strategic decisions (Kaplan & Cooper, 1998). Such inaccuracies impact product profitability analysis, customer pricing strategies, and cost control initiatives.

As an alternative, Activity-Based Costing (ABC) has emerged as a refined costing technique aimed at addressing these shortcomings. ABC assigns overhead costs based on actual activities that drive costs, such as ordering, inspection, or setup, rather than volume measures alone (Gosselin & Leblanc, 2000). ABC recognizes the heterogeneous nature of processes, providing more precise cost information, which supports better decision-making concerning product mix, process improvement, and performance measurement.

Practically implementing ABC, however, presents challenges, including increased complexity and costs associated with identifying and measuring numerous activities (Cooper & Kaplan, 1991). Organizations often face resistance due to disruption of established procedures and the need for substantial data collection. Overcoming these obstacles involves incremental implementation, extensive training, and clear communication of benefits to