PROJECT BRIEF
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Title of the project |
Management Accounting System, Techniques and Planning Tools |
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Learning Outcomes |
LO1, LO2, LO3 and LO4 |
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Date of Issue |
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Name and Date |
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Formative Assessment Date |
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Date of Submission |
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Format of submission |
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The submission of this project will be in the form of report as a MS word document. The portfolio of income statement should be in the MS excel. The writer should use heading, bullet point and subsections as effectively and appropriately. The report should consider the Harvard referencing system as a reference. A suggested limit of words is 3000 words, although if word limit increases you will not be penalised for that. |
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Project description and guidelines |
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Scenario and activity: you approach to the AstraZeneca company for account clerk position. You have passed the first round of interview that is telephonic interview. Now the second round of interview will be the report of production, report is to be sent by you to the hiring manager. This report must include a critical analysis of management accounting system & their advantages, Management Accounting reporting and their group action inside the organization. The report should also consider the method which should be used by organization to accomplish sustainable success. particularly, an evaluation of utilization of planning tools and management accounting systems in order to react on the financial trouble. At least two illustrations should be used for comparing how organization is making changes in management accounting systems while facing financial problems. A third round of an interview will be an assessment round. In this round you are required to perform the test. TEST A manufacturing firm has been working from three years. They are using the FIFO method and marginal cost approach for evaluation of stock in the financial statements. Now the manager wants to know what changes will occur in the recorded profit if absorption costing method will be utilized instead of marginal cost approach and FIFO method. The required information is given below: Total fixed indirect production cost is £ 65000 per year direct Labor cost for each of the three years is £16 per unit direct material cost for each of the three years is £12 per unit variable expenses which varies in direct ratio to the proportion is £20 per unit sales for the three years: constant selling price £70 per unit 37100 units 41100 units 61100 units production rate is £40300 units £48200 units £51200 units other overheads selling and distribution overheads: I year £11000, II year £11500, III year £13000 administrative overheads £15100 for every year interest expenses: I year £1100, II year £ 1350, III year £ 1600 REQUIREMENT prepare the income statement by considering the absorption costs and marginal cost for three years. So total 6 income statement will be required. Also, show the working of closing stock and comment on the results. |
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Learning Outcomes and Assessment Criteria |
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Pass |
Merit |
Distinction |
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LO1 Present a concept of management accounting systems |
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P1 Justify management accounting and describe various kind of management accounting systems. P2 State the various methods used for management accounting reporting. |
M1 advantages of management accounting systems and their application with the context of an organisation. |
D1 state how the management accounting systems and management accounting reporting is incorporated within organizational activity. |
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LO2 scope of management accounting techniques |
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P3 Compute cost using cost analysis method and also prepare an income statement by using marginal and absorption costs. |
M2 make financial reporting documents by applying management accounting techniques. |
D2 Make a financial reports and analyse data for a range of business activities. |
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LO3 Justify the uses of planning tools |
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P4 the different types of planning tools used for budgetary control Explain their benefit and drawback |
M3 Examine the utilization of various planning instrument and their application for preparing and forecasting budgets. |
D3 to solve financial problems, explain how planning tools for accounting respond appropriately |
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LO4 Compare ways how the organisation will utilize management accounting to react on financial problems |
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P5 Similitude how organisation is adopting management accounting systems to state the financial problems. |
M4 Study how the responses of financial problems will help management accounting in leading organisations for sustainable success. |
D3 state how planning tools will respond to solve financial problems for sustainable success. |
