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HOLMES INSTITUTE FACULTY OF HIGHER EDUCATION Assessment Details and Submission Guidelines Trimester T1 2020 Unit Code HI5017 Unit Title Managerial Accounting Assessment Type Assignment Assessment...

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HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION


Assessment Details and Submission Guidelines
Trimester T1 2020
Unit Code HI5017
Unit Title Managerial Accounting
Assessment
Type
Assignment
Assessment
Title
Individual Assignment
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 (ULO 1,2,3,4)
Weight 30% of the total assessments
Total Marks 30
Word limit Not more than 3,000 words. Please use “word count” and include in assignment.
Due Date Week 9 Sunday the 31st May at 11.59 p.m.
Submission
Guidelines
• All work must be submitted on Blackboard by the due date along with a completed
Assignment Cover Page.
• The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins
on all four sides of your page with appropriate section headings and page numbers.
• Reference sources must be cited in the text of the report, and listed appropriately at the end
in a reference list using Harvard referencing style.
• It is the responsibility of the student who is submitting the work, to ensure that the work is
in fact he
his own work. Incorporating another’s work or ideas into one’s own work without
appropriate acknowledgement is an academic offence. Students should submit all
assignments for plagiarism checking on Blackboard before final submission in the subject. For
further details, please refer to the Unit Outline and Student Handbook.



Page 2 of 6
HI5017 MANAGERIAL ACCOUNTING INDIVIDUAL ASSIGNMENT T1 2020





HI5017 MANAGERIAL ACCOUNTING INDIVIDUAL ASSIGNMENT T1 2020
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 (30 Marks)
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
elow:

Questions:
1. Briefly discuss the budgeting process. (5 marks)
2. Based on your selected journal article, discuss citing examples whether the budgeting process satisfies
the purpose of planning, controlling and evaluating performance. (5 marks)
3. The two widely used practices in preparing budgets are ‘top down’ budgeting and ‘bottom up’
udgeting. Identify and explain the practice adopted by the organisation discussed in your selected
journal article and further explain the behavioural implications of adopted practice. (5 marks)
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 (5 marks)
Additional Information:
a) You are encouraged to choose the journal article from the following Accounting and Management
Accounting Journals:
Accounting, Auditing and Accountability Journal;
https:
search.proquest.com
usiness/publication/publications_31671?accountid=30552
https:
search.proquest.com
usiness/publication/publications_31671?accountid=30552
Page 3 of 6
HI5017 MANAGERIAL ACCOUNTING INDIVIDUAL ASSIGNMENT T1 2020
Journal of Management Accounting Research
Journal of Applied Management Accounting Research
) You can access these journals in ProQuest Database by clicking on the above links. Log in details for
ProQuest are - Username: Holmes2004; Password: Holmes. These journals can also be accessed via the
ProQuest Database link available via the Student Login page in the Holmes website. You can also use
Google Scholar. Don’t use Google.
c) No student can choose the same article as another student from the same class, else both students may
eceive a zero mark, at the Lecturer’s discretion.
d) The journal article must be uploaded (as a separate PDF file) together with your assignment (as a MS
WORD file format) in Blackboard under the folder . 5 marks will be deducted if you do not
submit the articles with your assignment.
Assignment Structure:
The report should include the following components:
a. Assignment cover page clearly stating your name and student number
. Abstract (one paragraph)
c. Table of contents
d. A
ief introduction or overview of what the report is about.
e. Body of the assignment with appropriate section headings
f. Conclusion
g. List of References.
Marking Criteria
Marking Criteria Weighting
Journal Article Critique
1. Briefly discuss the purposes of budgeting process. (5 marks) 5%
2. Based on your selected journal article, discuss citing examples whether the
udgeting process satisfies the purpose of planning, controlling and evaluating
performance. (5 marks)
5%
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
ehavioural implications of adopted practice. (5 marks)
5%
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 marks)
5%
5. Based on your literature findings (above), would you recommend the use of
udgeting for contemporary organisations for planning and control purpose?
Explain (5 marks)
5%
Overall Presentation of Assignment 5%
TOTAL Weight 30%


https:
search.proquest.com
usiness/publication/31820/citation/6A92B992C7C74BC4PQ/3?accountid=30552
https:
search.proquest.com
usiness/publication/31820/citation/6A92B992C7C74BC4PQ/3?accountid=30552
https:
search.proquest.com
usiness/publication/publications_40108?accountid=30552
https:
search.proquest.com
usiness/publication/publications_40108?accountid=30552
Page 4 of 6
HI5017 MANAGERIAL ACCOUNTING INDIVIDUAL ASSIGNMENT T1 2020
Marking Ru
ic
Excellent Very Good Good Satisfactory Unsatisfactory
Journal Article Critique
Briefly discuss the
purposes of budgeting
process (5 marks)
XXXXXXXXXXmarks)
Present an
excellent
discussion of the
purposes of
udgeting
process.
XXXXXXXXXXmarks)
Present a very
good discussion
of the features of
udgeting
process.
XXXXXXXXXXmarks)
Present a good
discussion of the
features of
udgeting
process.
(2.1 – 3 marks)
Present a
easonable
discussion of the
features of
udgeting
process.
(0 - 2 marks)
Unable to
explain the
features of
udgeting
process.
Based on your selected
journal article, discuss
citing examples whether
the budgeting process
satisfies the purpose of
planning, controlling and
evaluating performance.
(5 marks)
XXXXXXXXXXmarks)
Present an
excellent
discussion of the
elevance of
udgeting
process as a
planning,
control and
evaluation
system, with
examples
provided from
the organisation
discussed in the
selected journal
article
XXXXXXXXXXmarks)
Present a very
good discussion
of the relevance
of budgeting
process as a
planning, control
and evaluation
system, with
examples
provided from
the organisation
discussed in the
selected journal
XXXXXXXXXXmarks)
Present a good
discussion of the
elevance of
udgeting
process as a
planning, control
and evaluation
system, with
examples
provided from the
organisation
discussed in the
selected journal
XXXXXXXXXXmarks)
Present a
easonable
discussion of the
elevance of
udgeting
process as a
planning,
control and
evaluation
system, with
examples
provided from
the organisation
discussed in the
selected journal
company.
(0 - 2 marks)
Unable to
explain the
elevance of
udgeting
process as a
planning, control
and evaluation
system, with
examples
provided from
the organisation
discussed in the
selected journal
The two widely used
practices in preparing
udgets are ‘top
down’ budgeting and
‘bottom up’
udgeting. Identify
and explain the
practice adopted by
the organisation
discussed in your
selected journal article
and
Answered Same Day May 28, 2021 HI5017

Solution

Akash answered on Jun 02 2021
147 Votes
HI5017
MANAGERIAL ACCOUNTING
NAME AND STUDENT NUMBER: ____________________________
Abstract
Budgeting is the basic requirement of any business sin the modern times. This assignment deals with the critical evaluation of an article relating to the use of budgeting process in hospitals. Detailed evaluation of the process followed by various organisation and the approach of managers towards the same has been done. Budgeting plays an integral part in the management of operations of any entity and managers are required to use the same with due care and proficiency. The issues with the process have been discussed in detail along with suitable recommendation for the same.
Table of Contents
Abstract    2
Introduction    4
1. Budgeting Process    4
2. Discussion regarding budgeting satisfying the purpose of planning, controlling and evaluating performance    5
3. Top Down and Bottom up Budgeting    6
4. Evaluation of the Stated Comment    6
5. Recommendations    7
Conclusion    8
References    9
Introduction
In the modern time, the complexities of operations have increased thereby leading to requirements of more resources. In the world of scarce resource as compared to large number of uses of the same, optimum utilisation of resources is the need of the hour. Budgeting helps in planning the use of the limited resource for achievement of the objectives of the organisation. Execution of the plans is a major issue for the managers due to the dynamic external as well as internal environment. This focus of this report is on the use of the budgeting technique for effective resource management. The article chosen fir thus purpose is “Evaluating priority setting success in healthcare: a pilot study” by Shannon L Si
ald, Jennifer L Gibson, Peter A singer, Ross Upshur and Douglas K Maertin. Critical analysis of the article has been done to evaluate the relevance and challenges of budgeting systems.
1. Budgeting Process
In simple words, budgeting is the process of spending the money in a planned manner. Planned spending helps an organisation in planning for the resources and tracks the difference in actual spending. According to Barasa et al. (2017), budgets act as a guideline for use of resources or spending money. Budgeting process enables a manager to plan his spending in advances and thereby a
ange the necessary funds at the right point of time. It ensures that funds are available at the most important times and following a spending plan helps the managers in savings of interest cost.
There are various type of budgets such as sales budget, financial budget, production budget, cash budget, overheads budget and others. As noted by Than et al. (2017), various budgets are used to meet the purpose of different departments and managers across various departments used budgeting as a tool to improve the allocation of resources. Cash budget is one of the most widely used budget among the manager (Berenson et al. 2016). It is mainly used for planning the cash requirements of an organisation for a later period. It ensures that there is ample availability of cash as and when required. The planning of cash requirement sis done in advance, which reduces the chances of cash shortage and ensures that there is no idle cash left.
There are multiple advantages of budgets however, authors argue that budgeting consumes a large portion of time of the managers and therefore, they do not get time for managing the core operations. In addition to that, budgets often restrict the firm from being adaptable and flexible in this dynamic environment. As the environment is highly dynamic, the decisions to be taken also require change from time to time (Asumta, Ismiyanti & Hartiningsih, 2016). However, budgets are not altered, which leads to rigidity of the overall process. As mentioned in the journal, budget also impedes adaptability due to defined boundaries. In the modern file, prices and margin are under constant pressure and therefore, managers are required to be flexible and adaptable. As the requirements of the budget are set in advance, the results may not change as they become out of date.
In the chosen article, it was observed that earlier it was the responsibility of the senior management to prepare the budget and there was no involvement of programme managers and directors in the same. However, in the budgeting process of 20007-2008, the programme managers and directors were involved in the budgeting process. The programme managers have a real experience of the requirements of the resources at the operational level. In 2007-08, almost 90% of the managers were involved in the budgeting process of the organisation. There were requests to consider the internal collaboration on budgets to capture significant cross-departmental interdependencies. The budgeting process had to follow a strict timeline, which indicates that organisations try to be disciplined in their budgeting process. Overall, the results matter, but the approach towards the same also matter. If the approach is good, there are higher chances of a better execution in the long-term, thereby leading to long-term success. The overall budgeting process was not implemented properly as the managers did not have ample knowledge and budgeting skills. However, after 2007-08, the situation has improved and the managers of the hospital have gained knowledge and skills (Si
ald et al. 2010).
According to Si
ald et al. (2010), accountability is a major issue in budgeting process and the same was observed in the chosen article. It was observed that the managers did not have a clear idea regarding the individual/team involve behind the decision-making process. Even the personnel responsible for taking the budgetary decisions had no idea the decision maker. Thus, it can be observed that there was a clear gap in the accountability of the budgeting process as no one was about to shoulder the responsibility and be accountable for the same.
2. Discussion regarding budgeting satisfying the purpose of planning, controlling and evaluating performance
Planning is of prime importance for the success of any strategy and effective planning is not the only requirement for achievement of organisational objectives. Effective planning couple with effective execution of the same plays a detrimental role in driving the organisation towards the zenith of success. From the chosen article, it can be observed that health care organisation do focus on planning but the approach is not highly exhaustive. However, recently there has been a shift in the mind-set of the managers and there was a significant shift in the organisation culture of the hospitals. The managers started to be accountable and took the responsibility of starting the multi-year planning approach (Si
ald et al. 2010).
In...
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