HOLMES INSTITUTE
FACULTY OF
HIGHER EDUCATION
HA2011 MANAGEMENT ACCOUNTING ASSIGNMENT
Assessment Details and Submission Guidelines
Trimester T2 2020
Unit Code HA2011
Unit Title Management Accounting
Assessment Type Assignment
Assessment Title Group Assignment
Purpose of the
assessment (with ULO
Mapping)
Students are required to demonstrate their ability to apply their knowledge of
management accounting concepts to plan and control business operations.
Specifically, you are to critically evaluate the use of value chain concepts in a real
company, for decision-making and achievement of business goals. You also will use
udgets as a planning tool by preparing a master budget for a company.
(ULO 1, 6 and 7)
Weight 30% of the total assessments
Total Marks 30
Word limit Not more than 2500 words. Please use the “word count” function and include the no.
of words in the assignment. You should use the “spell check” and “grammar check”
functions in Word.
Due Date Week 12 Friday 9th October, 2020 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.
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HA2011 MANAGEMENT ACCOUNTING
Assignment Specifications
Purpose:
This assignment aims at developing your understanding of management accounting concepts to plan and
control business operations. Specifically, you are to critically evaluate the use of value chain concepts in a real
company, for decision-making and achievement of business goals. You also will use budgets as a planning tool
y preparing a master budget for a company.
Instructions with Question 1 of the assignment.
This assignment is to be completed by a group of 3 - 4 students. You are to self-enrol in to a group.
Each group is to choose one company from the top 200 ASX Company listing (available in Black Board) to
answer Question 1 of the assignment. Register your group’s company name with your Lecturer, by email no
later than Week 11. Company names will be approved by your Lecturer on a first-come-first-served basis. No
group can choose the same company.
The Assignment Structure should be as the following:
Question 1 [10 marks]
a) Explain the value chain concept and discuss two (2) ways the value chain concept benefits organisations.
[3 marks]
) Based on the organisation that you have selected, evaluate the organisation using the value chain
concept. This explanation should include:
i. An identification of the company’s mission and objectives.
ii. A description of the competitive strategy (i.e. cost leadership, differentiation or focus) of the
company.
iii. Draw the value chain model for the company. i.e. Tailor the model to your company’s operations,
identifying its value-adding processes and support departments.
iv. Choose any two (2) value-adding processes of your company from the diagram in (iii), and for
each, explain the process. Give specific examples on what value this contributes to the company’s
products/services, leading to business decisions for improving customer and shareholder value.
v. Finally, comment on the relevance and usefulness of the information that you find in relation to
your theoretical knowledge of the value chain concept.
[7 marks]
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HA2011 MANAGEMENT ACCOUNTING
Question 2 This question is not related to Question 1. [20 marks]
Students are REQUIRED to use the budget templates (format) as illustrated in the Lecture Slides on
BUDGETING Topic (Topic 7). The budgets are to be created in EXCEL. Any supplementary working done to
support the amounts in the budgets should be provided.
PREPARATION OF OPERATING AND FINANCIAL BUDGETS
TAKULAH Company is preparing budgets for the third quarter ending Sept 30, 2019. Budgeted sales for the
next five (5) months are:
• July 22,000 units
• Aug 50,000 units
• Sept 32,000 units
• Oct 26,000 units
• Nov 15,000 units
The selling price is $15 per unit. All sales are on account. TAKULAH’s collection pattern is 60% collected in the
month of sale and remaining amount in the month following sale.
The June 30 Accounts Receivable balance of $50,000 will be collected in full.
The management at TAKULAH Company wants ending Finished Goods Inventory to be equal to 25% of the
following month’s budgeted sales in units.
At TAKULAH Company, five pounds of material are required per unit of product. Management wants materials
on hand at the end of each month equal to 15% of the following month’s production. Material cost is $0.50
per pound.
30% of a month’s purchases is paid for in the month of purchase and the remainder is paid in the following
month. The June 30 Accounts Payable balance is $20,000.
At TAKULAH, each unit of product requires 0.06 hours (3.6 minutes) of direct labour. The company has a “no
layoff” policy and in exchange for the “no layoff” policy, workers agree to a wage rate of $15 per hour
egardless of the hours worked (no overtime pay). For the next three months, the direct labour workforce will
e paid for a minimum of 2,000 hours per month.
At TAKULAH, manufacturing overhead is applied to units of product on the basis of direct labour hours. The
variable manufacturing overhead rate is $25 per direct labour hour. Fixed manufacturing overhead is $40,000
per month and includes $10,000 of non-cash costs.
At TAKULAH, the selling and administrative expenses budget is divided into variable and fixed components.
The variable selling and administrative expenses are $0.55 per unit sold. Fixed selling and administrative
expenses are $60,000 per month. The fixed selling and administrative expenses include $15,000 in costs that
are not cash outflows of the cu
ent month.
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HA2011 MANAGEMENT ACCOUNTING
The company:
• Has a July 1 cash balance of $55,000
• Maintains a minimum cash balance of $35,000
• Bo
ows on the first day of the month and repays loans on the last day of the quarter
• Maintains a 12% open line of credit for $95,000
• Pays a cash dividend of $45,000 in August
• Cash purchases of equipment, $155,200 in July and $54,800 in September, respectively
TAKULAH reported the following account balances prior to preparing its budgeted financial statements:
• Land - $65,000
• Equipment - $180,000
• Ordinary shares - $195,000
• Retained earnings - $X*
*This Retained earnings figure will be the amount needed to balance off your balance sheet on June 30th
i.e. the closing balances on June 30th before you step into the third quarter.
Required:
With the information provided, assist TAKULAH Company in setting up their ‘Master Budget’. To do
this, you will need to prepare the following budgets for the third quarter of the year:
1. Sales Budget
2. Production Budget
3. Direct Materials Budget
4. Direct Labour Budget
5. Manufacturing Overhead Budget
6. Ending Finished Goods Inventory Budget
7. Selling & Administration Expenses Budget
8. Expected Cash Collections
9. Expected Cash Disbursements for Materials
10. Cash Budget
11. Budgeted Income Statement
12. Budgeted Balance Sheet* XXXXXXXXXXmarks)
*For the balance sheet as at Sept 30th, there will be a difference between the final totals. This is due to
calculations based on rounded off units. To balance the totals, simply close off this difference to the
Retained Earnings account.
(NOTE - SHOW ALL OF YOUR WORKINGS)
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HA2011 MANAGEMENT ACCOUNTING
Additional Information:
a) In Question 2, you are to use formulas and cell references when creating your budgets. Don’t add
manually.
) You are to upload 2 files when submitting your assignment:
• One WORD file for your answer to Question 1
• One EXCEL file for your answer to Question 2. Make sure your group number and names are to be
included in the excel spreadsheet on page 1.
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.
To ensure that all students participate equitably in the group assignment and that students are responsible
for the academic integrity of all components of the assignment. You need to complete the following Group
Assignment Task Allocation table, which identifies which student/students are responsible for the various
sections of the assignment.