Reference no: EM132364210

Prepare and Analyse Management Accounting Information Assignment - Case Study based on customer profitability analysis

Summary and Purpose of Assessment -

Given information on "AG Ltd," from where each team will be required to write a detailed report on. Each team will prepare answers to specified questions (not in question and answer format) and submit this as part of a comprehensive and detailed report (format given) to the management of "AG Ltd." indicating their observations. Each team will also do a 5-10-minute power point presentation in-class based around this report but as a "snap-shot" only.

Please follow these step by step instructions for working on this assessment:

1. Download "Case study document" and "Business Report Format".

2. Create a Google docs, Google sheets and Google slide file for their group. One of the group member can do this and share it with the other group member and the teacher. It is important that you work on the assessment through these Google tools.

3. One of the team member in each group must start preparing minutes of the meetings which will be conducted to discuss the case study.

4. Please note that regarding the case study, each group will be required to demonstrate to their teacher their progress from week 6 - 9, which are referred to as Pitstops. These three Pitstops have been scheduled for weeks 7, 8 and 9. In these Pitstops, each student as part of a team is required to attend, demonstrate and evidence what progress and work on the case study has been completed to that point.

5. After completing the assessment, it is important that each team member uploads the following in Canvas:

• MS Excel file
• Power Points
• Business Report
• Group Peer Evaluation form and
• Minutes of the meeting

6. Do the group power point presentation in week 10 in class.

Case Study: Workplace Simulation - Presentation and submission of business report to the management of AG Ltd

Required:

1. Calculate the most profitable customer segment using the current basis of measuring the profitability for various customer segments.

2. Calculate the most profitable market segment using ABC method.

3. Compare the results with those in task (1) above.

4. Allocate the customer service costs to each small retailer.

5. Calculate the profitability of the two small retailers.

6. Assume that you are Lance. Using the information in tasks 1-5, write a report to the management: -

a) Explaining if any customer segment is too costly to service and should be abandoned, if yes, which one and why. Also explain repercussions of abandoning any customer segment, if you chose to say "Yes".

b) Based on individual customer profitability analysis, suggest what strategies AG Ltd should adopt to improve overall profitability, if they don't want to abandon any customer segment.

c) Suggest any new market avenues that are available for AG Ltd to expand geographical market to increase sales.

7. Your team will also complete a five to ten-minute power point presentation whereby all members of your group are required to present the findings (of your report) as a "snap-shot" to the Management team of AG Ltd. The content of the presentation must be consistent with your business report findings but summarised in 10 minutes. What you present in terms of content would be from your perspective, the main observations, issues, strengths, weaknesses and recommendations.

Note - Need a power point file with the calculations and the formula? Not just write down the numbers. The report file will need 30 pages as detail as you can.

Attachment:- Management Accounting Information Assignment Files.rar