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Management Accounting (Unit 5) Sep 19 Submission Front Sheet Assignment Code:NSAB912B5DS Programme:BTEC Higher National in Business (RQF) Unit Title and Number:Management Accounting (Unit 5) RFQ Level:4 Unit Code:H/508/0489 Credit value:15 credits Module Tutor:Desh Sharma Email:
[email protected] Date Set: 05.09.2019 Student’s Name: …………………………………………. Registration Number:…………………………………………… Date:…………………………………………… Session …………………………………………… Learner’s statement of authenticity Student’s Name: _______________________Student’s ID Number: ___________________ I certify that the work submitted for this assignment is my own. Where the work of others has been used to support my work then credit has been acknowledged. I have identified and acknowledged all sources used in this assignment and have referenced according to the Harvard referencing system. I have read and understood the Plagiarism and Collusion section provided with the assignment brief and understood the consequences of plagiarising. Signature: ___________________Date: ___/___/_____ Is this a First Submission or Second Submission ? words Word Count (max.5000) Turnitin Score % DEADLINES FOR HND’s MAY 2019 SEMESTER Formative assessment Dropbox 1-opens 05.10.2019 Formative assessment Dropbox 1- closes 13.10.2019. 1st formative feedback to be completed by 27.10.2019 Formative assessment Dropbox 2-opens If anyone misses the chance to upload on formative 1, they may use formative 2. 14.10.2019 Formative assessment Dropbox 2- closes 03.11.2019 2nd FORMATIVE FEEDBACK TO BE COMPLETED BY Students will have one week to work on teachers feedback. 24.11.2019 Final SUBMISSION box opens on 25.11.2019 Final SUBMISSION box closes on 01.12.2019 Fixed date Referral Dropbox will open from . 02.12.2019 Referral Dropbox closes on 05.01.2020 Fixed date Referral result deadline for teachers 19.01.2020 Only 2 chances allowed to clear the module i.e. final submission and referral submission. Assignment Brief Assignment Part A Management Accounting Systems Learning Outcomes LO1 and LO 2 Issue Date 05.09.2019 IV Name & Date L. Doyle 12th Sept 2019 Formative Assessment Date As on 2nd page Submission Date As on 2nd page Submission Format The submission is in the form of a report, submitted as a Microsoft Word document, and associated portfolio of income statements calculations performed in Microsoft Excel. You are required to make effective use of headings, bullet points and subsections as appropriate. Your report should be referenced using the Harvard referencing system. Please also provide a reference list using the Harvard referencing system. The recommended word limit is 1500 words, although you will not be penalised for exceeding the total word limit. Assignment Brief and Guidance Scenario and activity: You have applied for the position of account clerk in AstraZeneca, an organization in the manufacturing sector. You have successfully passed the telephone interview, which is the first of the 3-stages selection process. The second stage will be the production of a report that you will send to the hiring manager. The report will be on the role and function of a management accounting department, covering the management accounting systems operating in a typical organisation as well as the range of techniques used. The Hiring manager has also sent you some indicative information (see below) that should be included in your report: 1. An explanation of management accounting; 2. The role of management accounting and the essential elements of different types of management accounting systems to be explained; 3. An explanation of different methods used for management accounting reporting; 4. A critical evaluation of how management accounting is integrated within the organization; 5. An evaluation of the benefits of the systems and their application within an organizational context; 6. Conclusions that critically reflect the application of management accounting. The third and final stage will be an assessment centre in which you will be required to perform various calculations using Microsoft Excel for a given scenario. Your tutor has agreed to help you prepare you for these second and third stages. · Produce the report for review by your tutor, and · complete the test set by your tutor (see below) in preparation for the third and final stage of the selection process. You should include your answers to the test (including calculations in the appendix of your report) TEST A manufacturing business has been running for 3 years. It has used the marginal cost approach and FIFO (First in First Out) to value the stock in the financial statements. The manager is now interested to know what the recorded profits would have been if absorption costing had been used instead. Relevant information is presented below: a) Total fixed indirect production cost is £65,000 per year. b) Direct labour costs over each of the three years were £16 per unit. c) Direct material costs over each of the three years were £12 per unit. d) Variable expenses which vary in direct ratio to production were £20 per unit. e) Sales were: Year 1: 37,100 units; Year 2: 41,100 units; Year 3: 61,100 units. The selling price remained constant at £70 per unit. f) Production is at the rate of: Year 1: 40,300 units; Year 2: 48,200 units; Year 3: 51,200 units. (g) Other overheads are as follows: •Selling and Distribution overheads are: Year 1: £11,000 ; Year 2: £11,500, Year 3: £13,000 •Administrative overheads £15,100 for each year (h) Interest expense: Year 1: £1,100; Year 2: £1,350; Year 3: £1,600 Required: Prepare the income statements using marginal and absorption costs for the three years (6 income statements in total: 3 under marginal and 3 under absorption) with calculations / workings of closing stock and comment on the results. Also comment on the followings: · Difference between the marginal and absorption costing methods; · Use of Marginal costing in a business; · The reasons for the difference in profit / loss figures under these 2 methods. · Demonstrate how these financial reporting and statements support business growth and success. Assignment Part B Effective Planning Tools for Managing Accounts Learning Outcomes LO 3 and LO 4 Issue Date 05.09.2019 IV Name & Date Formative Assessment Date As on 2ND page Submission Date As on 2ND page Submission Format The submission is in the form of a report, submitted as a Microsoft Word document. You should submit only one report for assignment Part A, and assignment Part B, as the two are linked. You are required to make effective use of headings, bullet points and subsections as appropriate. Your report should be referenced using the Harvard referencing system. Please also provide a reference list using the Harvard referencing system. The recommended word limit is 1500 words, although you will not be penalised for exceeding the total word limit. Assignment Brief and Guidance Scenario and activity: Following your application for the position of account clerk at TPG Processing, you come across a new job for a newly-qualified Management Accountant. As part of the initial screening, the recruitment consultant has asked you to produce a report which analyses organisations’ use of planning tools to ensure financial stability and performance as well as ways in which management accounting has played a key role in preventing and solving financial problems. The report should contain the following: a) Explanation of the advantages and disadvantages of different types of planning tools used for budgetary control [Explain advantages and disadvantages of budgets, Fixed budgets, Flexible budgets, Incremental budgets, Zero based budgets and Variance analysis]. Please summarise your reply. b) Provide analysis of the use of different planning tools and their application for preparing and forecasting budgets. c) A comparison of how 2 chosen organisations are adapting management accounting systems to respond to financial problems [How the Management Accounting has evolved over the decades, how organisations detect their financial problems with reference to ratio analysis, KPIs and Benchmarking. Then evaluate how real world organisations (at least 2 organisations of your choice) are adapting the Management Accounting systems (cost control, inventory management, price optimisation etc.) to solve those financial problems. Some online research is required from you on the adaptation of management accounting systems by these 2 organisations (of your choice) and it is mandatory]. Please summarise reply. d) Critically evaluate how management accounting, in responding to financial problems, can drive organisations to sustainable success. Learning Outcomes and Assessment Criteria Pass Merit Distinction LO1 Demonstrate an understanding of management accounting systems P1 Explain management accounting and give the essential requirements of different types of management accounting systems. P2 Explain different methods used for management accounting reporting. M1 Evaluate the benefits of management accounting systems and their application within an organisational context. D1 Critically evaluate how management accounting systems and management accounting reporting is integrated within organisational processes. LO2 Apply a range of management accounting techniques P3 Calculate costs using appropriate techniques of cost analysis to prepare an income statement using marginal and absorption costs. M2 Accurately apply a range of management accounting techniques and produce appropriate financial reporting documents. D2 Produce financial reports that accurately apply and interpret data for a range of business activities. LO3 Explain the use of planning tools used in management accounting P4 Explain the advantages and disadvantages of different types of planning tools used for budgetary control. M3 Analyse the use of different planning tools and their application for preparing and forecasting budgets. D3 Evaluate how planning tools for accounting respond appropriately to solving financial problems to lead organisations to sustainable success. LO4 Compare ways in which organisations could use management accounting to respond to financial problems P5 Compare how organisations are adapting management accounting systems to respond to financial problems. M4 Analyse how, in responding to financial problems, management accounting can lead organisations to sustainable success. D3 Evaluate how planning tools for accounting respond appropriately to solving financial problems to lead organisations to sustainable success. GRADING DETAILS Achievement of a Pass grade a student must have satisfied all the Pass criteria for the learning outcomes, showing coverage of the unit content and therefore attainment at Level 4 or 5 of the national framework. Achievement of a Merit grade a student must have satisfied all the Merit criteria (as well as the Pass criteria) through high performance in each learning outcome. Achievement of a Distinction grade a student must have satisfied all the Distinction criteria (as well as the Pass and Merit criteria), and these define outstanding performance across the unit as a whole. Specification of Assessment · Present your work