Accounting Assignment Help
Program Title:
Accounting & Finance
Module Title: Advanced
Performance Management
Gulf College – Faculty
of Business and Management Studies – In academic
Affiliation with
CARDIFF SCHOOL OF MANAGEMENT
A.
Written work
·
A signed declaration that the work is
your own (apart from otherwise referencedØ
acknowledgements) must be included after the reference page of your assignment
·
Each page must be numbered.
·
Where appropriate, a contents page, a
list of tables/figures and a list of abbreviations should precede your work
·
All referencing must adhere to
School/Institutional requirements
·
A word count must be stated at the end
of your work.
·
Appendices should be kept to the minimum
and be of direct relevance to the content of your work.
·
All tables and figures must be correctly
numbered and labelled.
B.
Other types of coursework/assignments
·
Where coursework involves oral
presentations, discussions, poster presentations, etc., specific instructions
will be provided by your module leader/team
WORK DECLARATION
I,[Name of
Student],hereby declare that the uploaded Assignment through Turnitin is my own
work. I affirm that this has been researched and completed in accordance with
the college rules and regulations on plagiarism.
I acknowledge the
advice given by the module tutors on proper referencing to avoid plagiarism and
the rules on the academic unfair practice.
I acknowledge that I
read and understand the plagiarism guide written at the end of this assessment.
Any academic misconduct will be handled according to the rules and regulations
of the university.
General instructions
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‘References’. You may include diagrams, figures etc. without word penalty. The
number of words will be + or – 10% of the total words allowed.
A work declaration must
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you prepare your work in good faith. Any form of collusion and/or academic
unfair practice will be dealt with according to the pertinent rules and
regulations of the partner university. Please carefully read the plagiarism
guide.
Assessment Details
This Assignment
comprises 70% of the total assessments marks. It will develop the following
skills:
1.
Research skills. Students are able to
search for relevant literature and studies to support the assignment theories
and concepts.
2.
Decision making and problem solving using
accounting and mathematical technics.
3.
Critical thinking and evaluating the
different scenarios given in the assignment and apply solutions.
In addition, the
assessment will test the following learning outcomes:
1.
Demonstrate a working understanding of
more specialised management accounting techniques.
2.
Solve decision making problems involving
scarce resources, pricing and make versus buy.
3.
Compute and interpret cost & sales
variances for a range of complex situations.
Assessment Tasks
Task 1 (700 words
equivalent)
A budget is a financial
plan for a defined period, often one year. It may also include planned sales
volumes and revenues, resource quantities, costs and expenses, assets,
liabilities, and cash flows. Companies, governments, families, and other
organizations use it to express strategic plans of activities or events in
measurable terms.
The business
organisations prepare the budgets as per their business operation requirement.
Critically evaluate the various classifications of budgets prepared by the
business entities.
Within your discussion,
please discuss the:
a.
Introduction on the importance of budget
b.
Different classifications of budgets
Task 2 (1200 words
equivalent)
Turki Construction Ltd
considers tendering a contract which would take three months to complete. It is
felt that tenders over OMR 80,000 are extremely unlikely to be successful. The
company is in a specialised, highly competitive market and new contracts are
difficult to win and keep. If the contract is taken, Turki Construction Ltd
still expects to complete its other current contracts. The management
accountant submitted the cost estimates below:
Direct materials
Type A (already in
stock) 8,000
Type B (firm order
placed) 6,000
Type C (not yet
ordered, shown at current purchase price) 5,000
Direct labour 30,000
Other costs:
Variable overheads
3,000
Depreciation of
equipment (straight-line basis) 3,750
Supervisors’ salaries
(Two supervisors @ OMR 4,000 each per month) 24,000
(Two supervisors @ OMR
4,000 each per month)
General fixed overheads
12,000
TOTAL COSTS 91,750
Additional information
with respect to the above cost is given below:
1.
Type A material, originally cost OMR
8,000, is already in stock. The material is not in common use and would realise
about OMR 6,000 if sold. If Material A is not used in this contract, all
materials could be used later in the year as substitute to a material that
currently costs 30% less than A’s original price.
2.
Type B material is in regular use by the
company. The order for Type B material was placed twelve days ago and cannot be
cancelled anymore. Due to a world-wide shortage which is expected to continue
for the foreseeable future, Material B’s price has increased by 50% since the
order was placed. Material B could be sold at this new higher price (after
deducting 15% selling costs) to a competitor who urgently needs this material.
Alternatively, it can be used on other contracts later in the year.
3.
A team of semi-skilled staff would be
recruited locally specifically for the duration of this contract. The wages of
these semi-skilled staff will amount to a total of OMR 17,000. Skilled staff
would also need to be reallocated to this contract from within the company.
They have already worked for the company and are currently being paid although
there is very little work for them to do. The estimated wages for these workers
for the period of the contract are OMR 10,000. On top of this re-allocation of
skilled staff, it is estimated that a further OMR 3,000 of overtime will also
need to be incurred by specialist employees who are currently fully employed on
other jobs within the company.
4.
The management accountant has calculated
variable overheads for the contract using the company’s standard policy of 10%
of direct labour cost. However, the project manager has estimated that, due to
the unique nature of this work, the actual variable overhead arising as a
result of the contract is likely to be about OMR 4,750.
5.
The equipment to be used on the contract
cost OMR 180,000 when it was purchased in May 2011. It was planned to keep it
for ten years after which its scrap value was expected to be OMR 30,000. The
depreciation charge in the cost estimate is based on this data. At present, the
equipment is worth OMR 45,000. If used on the contract its current value is
likely to decline to approximately OMR 40,000. Turki Construction Ltd has no
further use for the equipment and if the contract is not accepted they would
sell it now
6.
The new contract is so specialised that
one of the two supervisors need to be recruited from a competitor. She is
expected to be paid a premium salary of OMR 5,000 per month. The second
supervisor, who is currently paid OMR 4,000 per month, can be temporarily
transferred from another department. However, he will only transfer to the
project if he is incentivised through a one-off bonus payment of OMR 800. His
current role will be filled by a temporary upgrading of an existing worker with
an estimated additional cost of OMR 400 per month.
7.
The management accountant allowed fixed
overheads for the contract using the company’s pre-determined policy of 40% of
direct labour cost. The general fixed overhead absorption rate is calculated
based on budgeted rent, rates, insurance, general expenses and similar fixed
costs. However, it is anticipated that this additional contract would cause
general expenses to increase by OMR 750 per month for the duration of the
contract.
Required:
a)
Using a relevant/opportunity cost
approach, prepare a revised cost estimate for the contract in the light of the
above information.
b)
For each item of cost referred to in the
question, clearly explain your reasoning behind its inclusion in (or omission
from) your estimate in a) above.
c)
On the basis of your estimate in (a)
above, state whether the company should tender this contract.
d)
What is transfer pricing and what is the
risk and benefits of transfer pricing for enterprises?
Task
3 (900 words equivalent)
The
budgeted sales for the Venicci Company for the most recent period were as
follows:
Product Quantity Contribution per unit (£)
X 90,000 (60%) 10
Y 45,000 (30%) 25
Z 15,000 (10%) 40
150,000
The
budgeted sales volume represented a 25% share of the expected market size
Actual
industry sales were 482,000 units i.e. the company’s actual market share was
135/482*100 = 28% (to the nearest %).
Required:
Calculate the following and to explain nature of the variance and whether it is
favourable or unfavourable:
a.
Sales volume variance
b. Sales quantity variance
c.
Sales mix variance
d.
Market size variance
e.
Market share variance
USA 
India