Reference no: EM132474980 , Length: 1200 Words

ACC/ACF2200 - Introduction to Management Accounting Assignment - Monash University, Australia

REQUIREMENTS - The senior managers at Aventis Bags have approached you and have asked for your advice on the current situation and the future direction of the company. You are expected to conduct research and analysis to prepare a report for the next executive management meeting which addresses the requirements below:

1. You are required to present to Aventis Bags' senior management a recommendation of the best strategy you believe that the company should adopt in order to be competitive, given the nature of its business. In order to achieve this, you should conduct research into the fundamental ways in which manufacturing companies can achieve a sustainable competitive advantage. Specifically you are required to:

a) Discuss two of these strategies, and for each one, identify and discuss one Australian or US, publicly listed manufacturing companies (include the company code of each) that have succeeded in using the particular strategy. In your discussion, include the reason why the strategy was chosen and implemented by the company, and how this has been effective for each company.

b) Using your research from Requirement 1(a), present the senior management team with a recommendation of the best strategy you believe Aventis Bags could adopt in order to be competitive and why this is the best one. Explain also why the other strategy, as identified by your research above, may not be as effective for Aventis Bags as the one recommended.

2. Aventis Bags' management team have agreed that the company needs to become more customer focused and have asked you to conduct a customer profitability analysis. Specifically you are required to:

a) Design a customer profitability system based on Activity Based Costing (ABC) for Aventis Bags. You will need to list the elements of this costing system including the activity cost pools and activity cost drivers. Include in your answer the activity cost driver rates.

b) Using the new ABC customer profitability system you have designed to calculate and show the profitability of Aventis Bags' six customer groups.

3. Based on your ABC customer profitability information, analyse the differences in the profitability of Aventis Bags' six customer groups with an emphasis on customer related activity costs.

Note - Word Limit: 1,200 words and Please use APA style referencing.

Attachment:- Introduction to Management Accounting Assignment File - Case Details.rar