Reference no: EM132503407

HI5017 Managerial Accounting Assignment - Holmes Institute, Australia

Assessment 1 -

Purpose of the assessment (with ULO Mapping) - Students are required to develop their understanding of the purpose and use of management accounting systems, and its usefulness in aiding managers make informed decisions. You are to critically evaluate the literature (using journal articles) to analyse the practical use of management accounting systems by contemporary companies, in terms of their relevance to the decision-making by managers and achievement of business goals.

Individual Assignment Specifications -

Purpose: This assignment aims at developing your understanding of the purpose and use of management accounting systems, and its usefulness in aiding managers make informed decisions. You are to critically evaluate the literature (using journal articles) to analyse the practical use of management accounting systems by contemporary companies, in terms of their relevance to the decision-making by managers and achievement of business goals.

Assignment Task - Journal Article Critique

You are required to conduct a literature search and discussion in this assignment. You are to choose a peer reviewed journal article (from any country) on the: Use of Budgeting as a management technique for managing resources.

The article should be published between 2010 - 2020. Choose your article only after you have accessed several relevant articles, and then choose the best articles that will answer the assignment question below.

Required: Critically evaluate the relevance and challenges of budgeting systems by answering the 5 questions below:

Questions:

1. Briefly discuss the budgeting process.

2. Based on your selected journal article, discuss citing examples whether the budgeting process satisfies the purpose of planning, controlling and evaluating performance.

3. The two widely used practices in preparing budgets are 'top down' budgeting and 'bottom up' budgeting. Identify and explain the practice adopted by the organisation discussed in your selected journal article and further explain the behavioural implications of adopted practice.

4. Based on your literature findings (above), critically evaluate the comment that 'traditional budgeting practices are constraint on creativity, and the time and energy spent on budget formulation is better spent elsewhere'.

5. Based on your literature findings (above), would you recommend budgeting for contemporary organisations for planning and control purpose? Explain.

Assignment Structure:- The report should include the following components:

a. Assignment cover page clearly stating your name and student number

b. Abstract (one paragraph)

c. Table of contents

d. A brief introduction or overview of what the report is about.

e. Body of the assignment with appropriate section headings

f. Conclusion

g. List of References.

Assessment 2 - Individual Reflective Journal

Purpose of the assessment (with ULO Mapping) - The purpose of this assessment is to ensure each student is able to document a critical reflection of their personal learning process, as experienced during this unit.

Individual Reflective Journal Specifications Purpose: The Individual Reflective Journal is to ensure each student is able to contribute to document a critical reflection of their personal learning process, as experienced during this unit. A significant aspect of the reflective journal will be your reflections on what you learnt and experienced from your individual assignment.

Assignment Task -

1. Reflections on the selected peer reviewed journal article based on the assignment topic. What went well, what did not go to plan, how did you addressed any difficulties, and what had you learnt from it.

2. Reflections on the research experience. What was enjoyable, what was difficult, what insights had you gained, and any issues, challenges you experienced.

3. Reflections on what you had learned from the individual assignment, including the relevance of budgeting as a management technique to businesses today. What insights had you gained and what had you learnt from it.

Assessment 3 - Tutorial Questions

Purpose: This assignment is designed to assess your level of knowledge of the key topics covered in this unit.

Unit Learning Outcomes Assessed:

1. Critically evaluate the various approaches to performance measurement and control in various types of organisations, and devise and evaluate indicators of performance;

2. Demonstrate the need for a balance between financial and non-financial information in decision making, control and performance evaluation applications of management accounting;

3. Analyse a company's financial statements and/or management reports and identify the strengths and weaknesses of the company and articulate these to the various stakeholders.

Task - Your task is to answer a selection of tutorial questions and submit these answers in a single document. The questions to be answered are:

Question 1 - The following data refer to Nani's Fashions for the current year:

Sales Revenues $475,000

Work in process inventory, 31 December 15,000

Work in process inventory, 1 January 20,000

Selling and administrative expenses 75,000

Income tax expense 45,000

Purchase of raw materials 90,000

Raw materials inventory, 31 December 12,500

Raw material inventory. 1 January 20,000

Direct labour 100,000

Electricity: plant 20,000

Depreciation plant and equipment 30,000

Finished goods inventory, 31 December 25,000

Finished goods inventory, 1 January 10,000

Indirect material 5,000

Indirect labour 7,500

Other manufacturing overhead 40,000

Required -

a) Prepare the schedule of cost of goods manufactured for Nani's fashion.

b) Prepare the schedule of cost of goods sold for Nani's Fashions and explain the information provided by the schedule of cost of goods sold.

c) Prepare an income statement for the current year.

Question 2 - Brisbane Indoor Sports, a sporting complex, has opening hours that fluctuate from month to month. The electricity costs and hours of operation for past six months is listed below:

Month	Total hours of operation	Total electricity cost
January	650	$4,240
February	700	$4,400
March	800	$4,800
April	600	$4,200
May	550	$3,700
June	500	$3,600

Required -

a) Use the high-low method to estimate the cost behaviour for the complex's electricity costs, assuming that the variable costs vary in proportion to the hours of operation. Express the total cost behaviour in formula form (Y = a + bx). What is the variable electricity cost per hour of operation?

b) During July, the complex will open for 570 hours. Predict the complex's total electricity costs for July using the cost estimation method employed in above requirement a).

c) What is the main drawback of the high-low method of cost estimation?

Question 3 - Toys World started and finished job number A26, a batch of 1,000 cuddly koalas, during March 2020. The job required $4,850 of direct material and 32 hours of direct labour at $20 per hour. The predetermined overhead rate is $10.50 per direct labour hour. On 31st March, 900 of the cuddly koalas were shipped to a local toy shop.

Required -

a) Prepare journal entries to record the incurrence of production costs, completion of job number A26 and the shipment of 900 cuddly koalas to local toy shop.

b) Calculate the cost per cuddly koala for job number A26.

c) How might the managers at Toys World use this information?