Reference no: EM131052417 , Length: word count:2000
Management Accounting Group Assignment
This assignment has two parts:
Part A: Technical or Practical
Part B: Report writing (2 000 words)
Please note:
-https://federation.edu.au/__data/assets/pdf_file/0015/164121/FedUni-General-Guide-to-Referencing-2014.pdf
-https://federation.edu.au/__data/assets/pdf_file/0018/190044/General-Guide-to-Writing-and-Study-Skills.pdf
- This is a group-assignment. Each group needs to have 2 to 3 members in it. Please organise yourselves into groups.
- Please make sure that names and ID numbers of all group members are stated on the cover sheet of your submission.
You are a management accountant at Delots Management Consultants. You have been approached by Pharmaguard Ltd regarding implementing Activity-based Costing (ABC) in its retail operations. The company has three main market segments:
- General supermarket chains
- Pharmacy chains
- Pharmacist-owned single stores
For many years,Pharmaguard has used gross margin percentage [(Revenue-Cost of goods sold) ÷ Revenue]to evaluate the relative profit ability of its market segments.
Pharmaguard's segmental profit information for 2015 is given below:
Pharmaguard Ltd, 2015
|
General supermarket chains
|
Pharmacy chains
|
Pharmacist-owned single stores
|
Pharmaguard Ltd
|
Revenues
|
$3 708 000
|
$3 150 000
|
$1 980 000
|
$8 838 000
|
Cost of goods sold
|
3 600 000
|
3 000 000
|
1 800 000
|
8 400 000
|
Gross margin
|
$108 000
|
$150 000
|
$180 000
|
438 000
|
Other operating costs
|
|
|
|
301 080
|
Operating profit
|
|
|
|
$136 920
|
In your meetings with Pharmaguard staff, you have undertaken a value or activity analysis, where you have classified activities as value-added or non-value added. You have identified the five key activities that drive other operating costs at Pharmaguard:
Activity area
|
Cost driver
|
Order processing
|
Number of customer purchase orders
|
Line-item processing
|
Number of line items ordered by customers
|
Delivering to stores
|
Number of store deliveries
|
Cartons shipped to store
|
Number of cartons shipped
|
Stocking of customer store shelves
|
Hours of shelf-stocking
|
You have also identified:
- Each customer order consists of one or more line items. A line item represents a single product (e.g. Nurofen Plus tablets).
- Each product line item is delivered in one or more separate cartons.
- Each store delivery entails the delivery of one or more cartons of products to a customer.
- Pharmaguard's staff stacks cartons directly onto display shelves in customers' stores. Currently, there is no additional charge to the customer for shelf-stocking, and not all customers use Pharmaguard for this activity.
The level of each activity in the three market segments and the total cost incurred for each activity in 2015 is shown below:
Activity-based cost data
|
Activity level
|
Pharmacare 2015
Activity
|
General supermarket chains
|
Pharmacy chains
|
Pharmacist-owned single stores
|
Total cost of activity in 2015
|
Orders processed (number)
|
140
|
360
|
1 500
|
$80 000
|
Line-items ordered (number)
|
1 960
|
4 320
|
15 000
|
63 840
|
Store deliveries made (number)
|
120
|
360
|
1 000
|
71 000
|
Cartons shipped to stores (number)
|
36 000
|
24 000
|
16 000
|
76 000
|
Shelf-stocking (hours)
|
360
|
180
|
100
|
10 240
|
|
|
|
|
$301 080
|
Required:
a. Compute the 2015 gross-margin percentage for each of Pharmaguard's three market segments.
b. Compute the cost driver rates for each of the five activity areas.
c. Use the activity-based costing information to allocate the $301080 of "other operating costs" to each of the market segments. Compute the operating profit for each market segment.
d. Comment on the results. What new insights are available with the ABC information?
e. The senior management at Phramaguard plans to implement ABC in its retail operations, manufacturing operations and its medical centre operations. The staff in these divisions are not in favour of implementing ABC and the Activity-based management (ABM). They are resisting these changes. Some employees are questioning, "why does the company need to change at all"?
f. As a consultant, give your professional advice on the benefits and limitations of adopting ABCfor all its all operations at Pharmaguard.
Java code with the concept of cryptograms
: How to create a java code with the concept of cryptograms? if the text is long then how to use the frequency of occurrence of each character?
|
How are they weatherstripped
: How are they weatherstripped? Do these windows make sense to you in terms of today's energy efficiency requirements and your own feelings about the room? How would you change them?
|
What could explain vicious behavior of people in missouri
: What could explain the vicious behavior of the people in Missouri towards the Mormon (LDS) settlers? What (if anything) did the Mormons do that caused such hatred amongst the Missourians.
|
Discuss the vulnerabilities associated with four
: Discuss the vulnerabilities associated with four of the ten networks described in your readings. Make sure you identify the network, potential vulnerabilities, and what the result could be from an attack against it.
|
Compute the gross-margin percentage for each of pharmaguards
: BUACC2613 Management Accounting Group Assignment. Compute the 2015 gross-margin percentage for each of Pharmaguard's three market segments. Compute the cost driver rates for each of the five activity areas
|
Determined with the most precision
: When working with the CAPM, which of the following factors can be determined with the most precision? The market risk premium (RPM). The expected rate of return on the market, rM. The beta coefficient of "the market," which is the same as the beta of..
|
Change to one of the cloud computing service
: In your current business environment, or one you were in at one time, which of the four cloud computing service models do you think might be good for that company to consider? How would a change to one of the cloud computing service models change ..
|
Normalize the relation to 2NF and then 3NF
: Normalize the relation to 2NF and then 3NF - Find and number the candidate keys using the given functional dependencies. Show your work and reasoning for credit.
|
Find the dividend yield on the index and the interest rate
: You can find spot and futures prices for a variety of equity indexes on www.wsj.com (or in the Datastream database available in the library). Pick one and check whether it is fairly priced. You will need to do some detective work to find the dividend..
|