Reference no: EM132209025 , Length: word count:2000
Management Accounting : Assignment Task
Assignment - Case Scenario Based Analysis
LO 1. Demonstrate an understanding of management accounting systems
LO 2 Apply a range of management accounting techniques.
LO 3 - Explain the use of planning tools used in management accounting
LO 4 - Compare ways in which organizations could use management accounting to respond to financial problems.
Part 1
With a myriad of conventional management accounting systems and the ability to modify or specify alterations, the type and provision of contemporary management accounting systems is an important decision for many firms. The selection of an inappropriate system may result in a detrimental effect on the strategic or operational functioning and positioning of the firm (Burns & Vaivio, 2001; Coad, 1999; Langfield-Smith et al., 2000; Mintzberg, 1990; Mintzberg et al., 1998; MacDonald & Richardson, 2002).
In this part, you will be able to understand:
1. An explanation of the principles of management accounting.
2. The role of management accounting and management accounting systems.
3. The use of techniques and methods used in management accounting by presenting calculations for an income statement using variable costings.
4. Explanation of how management accounting is integrated within an organisation.
5. The benefits of the function to the organisation.
LO1 Demonstrate an understanding of management accounting systems.
LO2 Apply a range of management accounting techniques.
In this Part 1, you will:
1. Produce a portfolio of completed calculations for financial statements, including income statements using variable costings by answering the questions given below.
2. You will also produce a presentation on the produced portfolio of completed financial statements.
LO 1 Demonstrate an understanding of management accounting systems
Case Study 1 - Waitrose axes free coffee for shoppers !!
"You are a Junior Management Accountant in the Waitrose Company, in an effort to promote understanding between different departments in the organization, you and your colleagues have been asked by your line manager to write a report first and then deliver a presentation on the role and functions of the management accounts department, covering the management accounting systems operating in the organization as well as the range of techniques used."
To make the report, you must answer the following questions as given below.
1. Based on the above scenario, explain the current management accounting systems being used at Waitrose and the different methods used by the organization for management accounting reporting? What are the essential requirements of different types of management accounting systems? Further evaluate the benefits of management accounting in your org and also critically evaluate how management accounting systems and reporting is integrated in the Waitrose case study.
LO 2 - Apply a range of management accounting techniques. Case Study 2 - Watirose PLC
2. Prepare an income statement that depicts the changes in profit values & individual cost lines based on the above scenarios presented for Boots Pharmaceuticals by examining absorption costing and marginal costing scenarios. Do you believe that costing plays an important role in managing sales & eventual profitability, if so, use a range of accurate management accounting techniques in producing appropriate financial statements? Provide a range of financial reports that interpret data accurately for a range of business activities
Note. Your research should be referenced using the Harvard referencing, system. Please also provide a bibliography using the Harvard referencing system. The recommended word limit is 1,000-1,500 words.
After making the report by answering all the questions given above in the two case studies, you will make a presentation based on the report made by you.
1] Each student would need to prepare a Power-point presentation comprising not more than 10 slides, the student will deliver it to the concerned module tutor within 10 minutes and shall be provided 5 minutes extra for answering questions asked by the module tutor.
2] The presentation shall include supporting calculations from a portfolio of completed financial statements, plus:
1. An explanation of the principles of management accounting.
2. The role of management accounting and management accounting systems.
3. The use of techniques and methods used in management accounting by presenting calculations for an income statement using variable costings.
4. Explanation of how management accounting is integrated within an organization.
5. The benefits of the function to the organization.
Case Study 3 - Marks & Spencer pre-tax profits tumble
Given the above scenario, you will now prepare a formal report while answering the questions below:-
1. The different types of planning tools that M&S could have used for attaining better control on its profits and avoided a store closure program apart from protecting its profits. Explain in context to the above case scenario the merits and demerits associated with planning tools used for budgetary control? What shall be your advice to Mr. Steve Rowe, CEO of M&S on the different planning tools to manage its ‘strategically weak & structurally challenged" by preparing & forecasting budgets?.
2. Do you agree with Mr. Steve Rowe's strategy of exiting 10 international markets, shutting down defined benefit staff pension scheme & focusing on its food division as part of its long term sustainable strategy in the wake of financial problem? How should M&S utilize its management accounting system to respond to its deteriorating financial condition? Do you consider this an apt management accounting practice? Finally, evaluate how Jill McDonald, Halford's Chief Executive can revive M&S clothing business, by appropriately solving the financial problems at M&S and guarantee its sustainable success. Please research and respond appropriately.
As a newly-qualified Management Accountant, you have been asked by your line manager to produce a ‘formal report' which analyses the Marks & Spencer's planning tools to ensure financial stability and performance as well as ways in which its management accounting has played a key role in preventing and solving financial problems.
In this part you will:
1. Compare and contrast three planning tools used in management accounting, indicating how effective you judge each to be and why. Your judgements should be supported by evidence based on the case scenario on Marks & Spencer presented above.
2. Using this specific case study example, compare ways in which management accounting is applied, the effectiveness of management accounting in dealing with financial problems and preventing financial problems in organizations.
3. Your Report should contain the basics of a Report format like Introduction, Aim, Objectives, answers to the specific questions asked in the case study, followed by your Recommendations, Conclusion and finally Referencing in the end.
Note: Your research should be referenced using the Harvard referencing, system. Please also provide a bibliography using the Harvard referencing system. The recommended word limit is 1500-2,000 words
Attachment:- Assignment.rar