Strategic Management AccountingAPC309Individual assignmentGeneral Information Weighting – 100%...

Question

Strategic Management AccountingAPC309Individual assignmentGeneral Information    	Weighting – 100% of the marks for this module 	This is an individual assignment of about 3,000 words (plus or minus 5%), excluding appendices and bibliography. The word count MUST be shown on the front of the assignment. 	There are a number of parts to this assignment. Each part is equally weighted. All parts are discreet from one another. 	All of the learning outcomes for the module are being assessed in this assignment. The learning outcomes are shown in the section entitled “Marking Guide”, which is further on in this document. 	The University’s policy on cheating collusion and plagiarism will be applied to this piece of work.  Background information on the imaginary organisation to which the three questions relate:You are a consultant management accountant who has been engaged by a medium to large, fast growing company Jessup ltd. The company is involved in advertising and public relations and is run by four directors who are all advertising experts. While the company is doing very well they feel it has reached a stage where they need better management of the accounting function. Generally, they are unsure of the strategic benefits a senior management accountant would bring and particularly they have concerns with which costs are most relevant to decision making and of any methods by which they can accurately cost their activities.You are required to produce a report to the directors which addresses the following three questions:Question 1: What are the key roles which a strategic management accountant would undertake in an organisation such as Jessup?Question 2: What is meant by the terms relevant and irrelevant costs and revenues in Strategic Management Accounting decision making? Include several small numerical examples in your answer. .Question 3: What are the benefits and problems of introducing activity based costing into an organisation such as Jessup?Guidance:Students are encouraged to be inquisitive and innovative in their approach as to what should be included in this report the following may be of some use in providing guidance as to what could possibly be included, although this is in no way meant to be prescriptive.The aim of the assignment is to help you understand how key areas of strategic management accounting are demonstrated in practice by a medium to large organisation. This will include investigating topics from throughout the course linked to the above issues. Some of the principles, concepts ad models will be more relevant to your chosen approach than others and so it is likely that different students will formulate different approaches to the problems. This is normal, it is not expected that all of the course content will be used in the analysis, concentrate on that which you feel is most important.As part of your work you might find it helpful to briefly explore the underlying theory behind the key areas of investigation that you identify before applying them to report.With a total of 3,000 words you do not have a lot of room for long introductions so assume you are writing to a sophisticated audience who has some working knowledge of strategic management accounting and is well versed in business theory. Numerical example for illustrative purposes may be of use but should not be the main thrust of the work. If used they should be to provide evidence to support your findings from your other analysis of position and policies. If other sources are used remember to reference everything!Please avoid relying too heavily on descriptive sections reproducing information available from course material or the set text. It is your own logical, evaluation of the situation, the interpretation of course material and presentation, with critical analysis, of a coherent strategic plan that will attract high marks.Marking GuideThe learning outcomes for this module assessed by this piece of work areKnowledge 	Critically evaluate a range of key strategic management accounting models and concepts. 	Critically understand of specific analytical skills in key areas within management accounting at local and international level 	Critically understand of the role and limitations of management accounting theory.   Skills   	Applied the key management accounting concepts and methodologies in order to contribute to successful decision making in an organisation.  In light of this the assessment criteria in the grid below will be used when assessing your work.   ASSESSMENT CRITERIA    	 		 			Criteria 			Fail ( 			Fail (35-39) 			3rd (40-49) 			2:2 (50-59) 			2:1 (69-69) 			Ist (70+) 		 		 			Knowledge of relevant concepts and issues 			Fails to identify the majority of the concepts relevant to the question or introduces topics that are not relevant. The ordering of the concepts indicates a lack of understanding of key concepts. 			Fails to identify the majority of the concepts relevant to the question. Those concepts that are used are misapplied. The ordering of the concepts is in appropriate. 			Identifies some of the key concepts, but not all o f them, or displays an in correct understanding of some of the concepts discussed. The ordering of the concepts may be adhoc. 			Identifies and utilises some of the key concepts relevant to the question. Uses some of the concepts, but not always in an appropriate context. The work is ordered appropriately 			Identifies the majority of the key concepts relevant to the question and uses them in an appropriate context. Orders and structures them in a logical sequence 			Identifies all of the key concepts relevant to the question and uses them in an appropriate context. The material is structured to show significant understanding of the key issues. 		 		 			Depth of understanding and extent of critical evaluation (including evidence of wider reading) 			The student has failed to address the question set or appears to have answered a different question to that set. There is no evidence of any reading. No key issues identified. 			There is no evaluation of the validity of the sources used or the work is based on one key source. Inappropriate sources are used extensively. There is no evidence of appropriate wider reading. No reflection on key issues. 			There is some evaluation of the materials used in the work. The work is based on a limited number of appropriate sources.Little reflection on key issues. 			Good evaluation of materials used, with discernment obvious as to key sources. The work is based on a number of appropriate sources. Some reflection on key issues. 			Good evaluation of all key/important sources materials used. The work is based on a wide range of appropriate sources. Good reflection on key issues. 			The work is set in a context where wider reading and appreciation of the context is obvious. The material included is relevant to the topic and appropriate in addressing the key issues identified in the assignment 		 		 			Evidence of appropriate analysis 			The student fails to draw any relationships from the material used or the student is incorrect in the relationships that they draw. 			The student draws one or two basic relationships from the material used, but then subsequently misapply these concepts. 			The student draws one or two basic relationships from the material used, but fails to identify other important relationships. There may be some evidence they have not clearly understood all of the material they have presented 			The student draws some limited relationships from the material used. There might be minor issues where the student is incorrect in the assertions that they make, but overall they demonstrate appropriate analysis. 			The student starts to demonstrate they understand the key relationships from the material used. There are no substantive errors in their analysis. 			All the key connections are drawn between materials from different sources. The student makes no substantive errors in their analysis and reflects upon the key issues identified in their analysis. 		 		 			Ability to synthesise relevant material from a range of sources 			The student fails to use any appropriate sources. There is extensive repetition of notes given out in class. 			The student uses just a few non-academic sources of information or the material used is inappropriate for UG level study. They quote verbatim extensively from one or two sources. They use quotations incorrectly to support an argument. 			The student uses a few sources of information or the material used is inappropriate for UG level study. Extensive verbatim quotes are used as a replacement for the students own work. 			The student may be limited in their use of academic sources such as journals and books, but there is evidence that they have attempted to access a range of sources including non-academic ones. 			The student has accessed a range of academic sources such as journals and books, and also appropriate non-academic ones. Verbatim quotes are used to enhance the arguments being developed rather than as a replacement for the students own work. 			The student has accessed a wide range of appropriate sources. They make reference to a wide range of material in their work. Verbatim quotes are used from a range of sources to illustrate and support the arguments being developed, but without becoming a substitute for the students own work. 		 		 			Structure and clarity of presentation. 			The work has no coherent structure. The work is littered with spelling and typographical errors. Very poor use of English. Where appropriate tables/graphs are not used. Referencing is poor or non-existent. 			The work is poorly organised, and structured. There are many spelling and typographical errors. Poor use of English. Where appropriate tables/graphs are not used. Referencing is patchy and incomplete. 			The work is poorly structured. There are spelling and typographical errors. Poor use of English. Where appropriate tables/graphs are not used appropriately. Some of the referencing is incomplete 			The work has a clear structure and generally a logical progression. Occasional typographical and spelling errors. Some use of tables/graphs is made where appropriate. 			The work has overall a coherent structure and a clear and logical progression. Very few typographical and spelling errors. Good use of tables/graphs is made where appropriate. 			The work is well structured with clearly defined objectives that are achieved. Typographical and spelling errors are rare. Excellent use of tables/graphs is made where appropriate.

David · Accepted Answer

CONTENTS
SHORT EXECUTIVE SUMMARY
ANSWER TO QUESTION 1 
 Key Roles of a Strategic Management Accountant 
 Areas I as a management accountant would consider focusing in Jessup Ltd 
 Analysis of Jessup Ltd with the help of BCG growth share Matrix  
 Other potential approaches towards Jessup Ltd as a management accountant and 
what can be done to improve its performance
ANSWER TO QUESTION 2 
 Relevant costs and Irrelevant cost 
 Types of irrelevant costs 
 Examples (general and in reference to Jessup) 
 Relevant and incremental revenues 
 Factors affecting decision making
ANSWER TO QUESTION 3 
 Traditional Costing to Activity Based Costing 
 Benefits of ABC 
 Problems or weaknesses of ABC 
 Types of activities in an organization 
 Activity Based costing and Activity Based Management
CONCLUSION
EXECUTIVE SUMMARY
In this report I have considered the position of Jessup Ltd in the market and analyzed what 
competitive advantages it has in this market. The company having such potential is bound to 
have a high growth rate, but with the development in different sectors, the company needs to act 
a bit more tactically. This is where the role of a Strategic Management Accountant comes in. 
They key roles of such an accountant are discussed. Such an experienced advisor may be of great 
advantage to the firm, and may prove to help the company gain dominance over the market. The 
strategies and models developed by renowned economists and analysts are discussed, and how it 
can be implemented in Jessup Ltd.  
The decision making process of a management accountant has also been discussed. Various 
factors come into consideration while making a decision regarding a particular project or 
contract. Similarly, we look into these factors and what Jessup should consider before getting 
into a contract with a client. This may involve the relevant and the non relevant costs and 
revenues, the opportunity cost of that contract and the limiting factors faced by Jessup, if any, in 
that scenario. 
Lastly I have analyzed the use of activity based costing in Jessup Ltd. Though ABC seems to 
have a few limitations, its advantages weigh far more than its limitations. The main question of 
“Why ABC and why not the traditional costing method?” has been addressed. I then finally 
concluded by briefing on Activity based Management in comparison to Activity based Costing.
Assignment of 3035 words 
Answer to Question 1 
In a highly competitive market place, companies can operate successfully by creating and 
delivering superior value to target customers. In order to do so they need to learn to adapt 
themselves continuously according to the changing business environment. In such a situation 
there arises a need for a strategic management accountant. The overall objective from a strategic 
management accountant’s point of view for any company would be: 
 To help the company gain competitive advantage over its competitors so that it can enjoy 
a dominance over the market 
 To guide the company successfully through all the changes in the business environment.
The key roles for me in the process of fulfilling the above objectives for Jessup Ltd. would be: 
1. To first of all analyze what the company’s mission is all about and what motto do those 
four directors have in respect to their company. 
2. To then, set long term and current goals for Jessup which would help it gain competitive 
advantage in the market, and increase its overall performance compared to its 
competitors. 
3. To understand the strategic position of Jessup Ltd in the market by studying a few factors 
like, its market share, the key areas where it already enjoys competitive advantage, the 
performance of all the other advertising firms in comparison to Jessup. 
4. Form strategies which would help Jessup further exploit its competitive advantages, like 
having four directors who are advertising experts, improvise on areas where it seems to 
lack skills, for example, it might not be having the best public relations department, so 
the strategy formulation should aim at increasing the efficiency and performance of that 
area. 
5. Implement these strategies, then again analyze their performance, and take corrective 
action if required.
As a management accountant for Jessup, I would first look into its strengths and the area that has 
helped it reach the stage, it is at present. As we are aware that Jessup Ltd is a fast growing firm, 
it would not be fair to conclude that it is a well performing one. It is important to determine its 
position in the market presently while comparing it to its previous years performance. It might be 
the growth of the industry alone which is resulting in more earnings and better performance of 
Jessup.  
In such a situation it would be logical to use the BCG Matrix which would provide with the best 
decision, as it takes into consideration that growth of the industry and the relative market share 
of the company under study. Though this model is used for a businesses which are well-
diversified and mostly deals in acquisitions and divestments of other firms, this model could also 
be adopted in the advertisement business as the business of advertisement and public relations 
has too become well diversified with a number of areas and technological requirements in 
different fields.( http://www.bcgmatrix.org/)
The above diagram represents a growth-share matrix that was developed by Boston Consulting 
Group. Now if in the given situation the reason for Jessup’s growth is only its increase in the 
market share despite of the market growth falling, it would be advised to maintain that position 
and rather enjoy the benefits there from. Hence do not act aggressively. Such a situation is 
described as “Cash Cows” in the matrix. 
Whereas if the market is forecasted to grow, Jessup Ltd is advised to increase is its market share 
by investing more in that particular area helping it to fall in the “star” category. For example, 
Jessup is good with still image photography and has contracts of hoardings in the key areas of 
the city which attract the maximum attention, but Jessup has been unsuccessful with its 
television campaigns and is not being able to successfully influence its viewers like it other 
Stars ?? 
Cash 
Cows 
Dogs 
http://www.bcgmatrix.org/
competitors. It would be advised that Jessup concentrates its time and money on the still 
hoardings.
While looking for Jessup’s long term goals and objectives,

Strategic Management Accounting APC309 Individual assignment General Information Weighting – 100% of the marks for this module This is an individual assignment of about 3,000 words (plus or minus 5%),...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment

Criteria	Fail (	Fail (35-39)	3^rd (40-49)	2:2 (50-59)	2:1 (69-69)	Ist (70+)
Knowledge of relevant concepts and issues	Fails to identify the majority of the concepts relevant to the question or introduces topics that are not relevant. The ordering of the concepts indicates a lack of understanding of key concepts.	Fails to identify the majority of the concepts relevant to the question. Those concepts that are used are misapplied. The ordering of the concepts is in appropriate.	Identifies some of the key concepts, but not all o f them, or displays an in correct understanding of some of the concepts discussed. The ordering of the concepts may be adhoc.	Identifies and utilises some of the key concepts relevant to the question. Uses some of the concepts, but not always in an appropriate context. The work is ordered appropriately	Identifies the majority of the key concepts relevant to the question and uses them in an appropriate context. Orders and structures them in a logical sequence	Identifies all of the key concepts relevant to the question and uses them in an appropriate context. The material is structured to show significant understanding of the key issues.
Depth of understanding and extent of critical evaluation (including evidence of wider reading)	The student has failed to address the question set or appears to have answered a different question to that set. There is no evidence of any reading. No key issues identified.	There is no evaluation of the validity of the sources used or the work is based on one key source. Inappropriate sources are used extensively. There is no evidence of appropriate wider reading. No reflection on key issues.	There is some evaluation of the materials used in the work. The work is based on a limited number of appropriate sources. Little reflection on key issues.	Good evaluation of materials used, with discernment obvious as to key sources. The work is based on a number of appropriate sources. Some reflection on key issues.	Good evaluation of all key/important sources materials used. The work is based on a wide range of appropriate sources. Good reflection on key issues.	The work is set in a context where wider reading and appreciation of the context is obvious. The material included is relevant to the topic and appropriate in addressing the key issues identified in the assignment
Evidence of appropriate analysis	The student fails to draw any relationships from the material used or the student is incorrect in the relationships that they draw.	The student draws one or two basic relationships from the material used, but then subsequently misapply these concepts.	The student draws one or two basic relationships from the material used, but fails to identify other important relationships. There may be some evidence they have not clearly understood all of the material they have presented	The student draws some limited relationships from the material used. There might be minor issues where the student is incorrect in the assertions that they make, but overall they demonstrate appropriate analysis.	The student starts to demonstrate they understand the key relationships from the material used. There are no substantive errors in their analysis.	All the key connections are drawn between materials from different sources. The student makes no substantive errors in their analysis and reflects upon the key issues identified in their analysis.
Ability to synthesise relevant material from a range of sources	The student fails to use any appropriate sources. There is extensive repetition of notes given out in class.	The student uses just a few non-academic sources of information or the material used is inappropriate for UG level study. They quote verbatim extensively from one or two sources. They use quotations incorrectly to support an argument.	The student uses a few sources of information or the material used is inappropriate for UG level study. Extensive verbatim quotes are used as a replacement for the students own work.	The student may be limited in their use of academic sources such as journals and books, but there is evidence that they have attempted to access a range of sources including non-academic ones.	The student has accessed a range of academic sources such as journals and books, and also appropriate non-academic ones. Verbatim quotes are used to enhance the arguments being developed rather than as a replacement for the students own work.	The student has accessed a wide range of appropriate sources. They make reference to a wide range of material in their work. Verbatim quotes are used from a range of sources to illustrate and support the arguments being developed, but without becoming a substitute for the students own work.
Structure and clarity of presentation.	The work has no coherent structure. The work is littered with spelling and typographical errors. Very poor use of English. Where appropriate tables/graphs are not used. Referencing is poor or non-existent.	The work is poorly organised, and structured. There are many spelling and typographical errors. Poor use of English. Where appropriate tables/graphs are not used. Referencing is patchy and incomplete.	The work is poorly structured. There are spelling and typographical errors. Poor use of English. Where appropriate tables/graphs are not used appropriately. Some of the referencing is incomplete	The work has a clear structure and generally a logical progression. Occasional typographical and spelling errors. Some use of tables/graphs is made where appropriate.	The work has overall a coherent structure and a clear and logical progression. Very few typographical and spelling errors. Good use of tables/graphs is made where appropriate.	The work is well structured with clearly defined objectives that are achieved. Typographical and spelling errors are rare. Excellent use of tables/graphs is made where appropriate.