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HA2011 T2 2021 Management Accounting

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HA2011 T2 2021 Management Accounting

Assessment Details and Submission Guidelines
TrimesterT2 2021
Unit CodeHA2011
Unit TitleManagement Accounting
Assessment TypeAssignment
Assessment TitleGroup 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 Activity-based Costing (ABC) for decision-making and achievement of business goals. You also will use budgets as a planning tool by preparing a master budget for a company. (ULO 1, 6 and 7) Outline the differences between fixed costs, variable costs, and mixed costs by categorising various costs of an entity into these categoriesApply the concept of costs to various costing systems including justification of cost and system choicesImplement systems to plan and control business operations
Weight30% of the total assessments
Total Marks30
Word limitNot more than 2,500 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 DateWeek 9 – Friday 17 Sep 2021 at 5 p.m.
Submission GuidelinesAll 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 her/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. Adapted Harvard Referencing Holmes has now implemented a revised Harvard approach to referencing:   Reference sources in assignments are limited to sources which provide full text access to the source’s content for lecturers and markers.
 The Reference list should be located on a separate page at the end of the essay and titled: References.It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname. In addition, it MUST include a hyperlink to the full text of the cited reference source. For example; Hawking, P., McCarthy, B. and Stein, A. 2004. Second Wave ERP Education, Journal of Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf   All assignments will require additional in-text reference details which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of content, paragraph where the content can be found. For example; “The company decided to implement an enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4)).”   cid:image001.png@01D70919.7D6E4510     Non – Adherence to Referencing Guidelines Where students do not follow the above guidelines: Students who submit assignments which do not comply with the guidelines will incur 10% penalty for inadequate referencing.Late penalties will apply per day after a student or group has been notified of a resubmission requirements.Students whose citations are fake will be reported for academic misconduct

*Note: Students are required to form and self-enrol into groups – a maximum of 4 students per group. You will not be able to submit your group assignment unless you are OFFICIALLY enrolled into a designated group in Blackboard (even if it is a solo-group of 1). Submit the group assignment as a single document, including the Holmes official COVER SHEET. Once formed, the group membership should not be changed for the duration of the trimester.

For help with any group assignment matters, please address your email to bbhelpdesk@holmes.edu.au ensuring that your full details (Name, student ID, unit name and number) are included.

Purpose:

Assignment Specifications

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 Activity-based Costing (ABC) for decision-making and achievement of business goals. You also will use budgets as a planning tool by preparing a master budget for a company.

This assignment is to be completed by a group of 3 – 4 students. You are to self-enrol in to a group. Individual assignments will NOT be accepted, unless approved by the Unit Coordinator.

Instructions with Question 1 of the assignment.

  1. You are to refer to the management accounting literature in Question 1, particularly to use relevant academic journal articles from the following Accounting and Management Accounting Journals:

Accounting, Auditing and Accountability Journal; 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.

  • You are to select a minimum of three (3) relevant journal articles, and follow the revised Harvard approach

to referencing (on pg. 1 – 2), which include providing the hyperlink to the full text of the cited reference source.

The Assignment Structure should be as the following:

Question 2        This question is not related to Question 1.                                                                              [20 marks]

This assignment MUST be done in groups of three or four students. Individual assignments will NOT be accepted, unless approved by the Unit Coordinator. The groups are to be formed at your discretion in your respective campuses. Group conflicts must be resolved by members.

The table below needs to be used on the cover sheet of your assignment. The assignment will be marked STRICTLY based on the order in which you list student ID’s. The details below are just examples. You must fill in your respective group details.

An example only:

Group No.MemberID NumberFirst NameLast Name
1.NXX2037MickeyMouse
2.APS2094DonaldDuck
3.EMV30216YogiBear
4.AEES2104ScoobyDoo

Students are REQUIRED to use the budget templates as illustrated in the Lecture Slides on BUDGETING Topic (Topic 7). Any supplementary working done to support the amounts in the budgets should be provided.

PREPARATION OF OPERATING AND FINANCIAL BUDGETS

Happy Baker produces banana bread for resale at large grocery stores throughout Australia. The company is currently in the process of establishing a master budget on a quarterly basis for the next financial year, which ends June 30. Last year quarterly sales were as follows (1 unit = 1 batch):

First quarter 50,AAA units Second quarter 75,BBB units Third quarter 86,CCC units Fourth quarter 90,DDD units

See further instructions about last year quarterly sales figures in the table below:

Group Member No.ID NumberFirst NameLast Name
1.NXX2037MickeyMouse
2.APS2094DonaldDuck
3.EMV30216YogiBear
4.AEES2104ScoobyDoo

First quarter 50,AAA units becomes 50,037 units. AAA is the last three digits of Member 1’s ID. Second quarter 75,BBB units becomes 75,094 units. BBB is the last three digits of Member 2’s ID. Third quarter 86,CCC units becomes 86,216 units. CCC is the last three digits of Member 3’s ID. Fourth quarter 90,DDD units become 90,104 units. DDD is the last three digits of Member 4’s ID.

HA2011 MANAGEMENT ACCOUNTING ASSIGNMENT – T1 2021  

NOTE that if your group has three members only, then use the value of 80,000 units for the fourth quarter. For solo group, if approved, do contact the Unit Coordinator via email (KVega@Holmes.edu.au) who will provide you with the last year quarterly sales figures to use.

PREPARATION OF OPERATING AND FINANCIAL BUDGETS (Continued)

Unit sales are expected to increase 25 percent, and each unit is expected to sell for $15. The management prefers to maintain ending finished goods inventory equal to 20 percent of next quarter’s sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 20,000 units.

Direct Materials Purchases Budget Information

Each unit of product requires 1.75 pounds of direct materials per unit, and the cost of direct materials is $1.5 per pound. Management prefers to maintain ending raw materials inventory equal to 30 percent of next quarter’s materials needed in production. Assume raw materials inventory at the end of the fourth quarter budget periodis estimated to be 55,000 pounds.

Direct Labor Budget Information

Each unit of product requires 0.20 direct labor hours at a cost of $15 per hour.

Manufacturing Overhead Budget Information

Variable overhead costs are:

Indirect materials$0.10 per unit
Indirect labor$0.15 per unit
Other$0.10 per unit

Fixed overhead costs each quarter are:

Salaries$32,000
Rent$20,000
Depreciation$16,165

Happy Baker estimates that all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year are:

Salaries$40,000
Rent$ 5,000
Advertising$10,000
Depreciation$ 8,000
Other$ 1,000

Happy Baker has the following information pertaining to the capital expenditures and cash budgets.

Capital Expenditures

The company plans to purchase selling and administrative equipment totalling $20,000 and production equipment totalling $28,000. Both will be purchased at the end of the fourth quarter and will not affect depreciation expense in the current year.

Cash Budget

All sales are on credit. The company expects to collect 70 percent of sales in the quarter of sale, 25 percent of sales in the quarter following the sale, and 5 percent will not be collected (bad debt). Accounts receivable at the end of last year totalled $300,000, all of which will be collected in the first quarter of this coming year.

All direct materials purchases are on credit. The company expects to pay 80 percent of purchases in the quarter of purchase and 20 percent the following quarter. Accounts payable balance at the end of last year was $50,000, all of which will be paid in the first quarter of this coming year.

The cash balance at the end of last year was $35,000.

The company does not have an overdraft facility with their bank.

Assume Happy Baker will collect 25 percent of fourth quarter budgeted sales in full next year (this represents accounts receivable at the end of the fourth quarter). The following account balances are expected at the end of the fourth quarter:

  • Property, plant, and equipment (net): $320,000
  • Ordinary Shares: $1,000,000

Retained earnings at the end of last year amounted to $1,234,000.00 and no cash dividends are anticipated for the budgetperiod ending June 30.

Required:

With the information provided, assist Happy Baker in setting up their ‘Master Budget’. To do this, you will need to prepare the following budgets for coming year:

  1. Sales Budget
    1. Production Budget
    1. Direct Materials Purchases Budget
    1. Direct Labour Budget
    1. Manufacturing Overhead Budget
    1. Ending Finished Goods Inventory Budget
    1. Selling & Administration Expenses Budget
    1. Expected Cash Collections
    1. Expected Cash Disbursements for Materials
    1. Cash Budget
    1. Budgeted Income Statement
    1. Budgeted Balance Sheet*
    1. Review the cash budget for Happy Baker. Comment on the company’s cash position in the coming year, and provide one recommendation to resolve one issue you have raised.

(20 marks)

*For the balance sheet as at June 30th, there will be a difference between the final totals. This is due to calculations based on rounded off amounts. To balance the totals, simply close off this difference to the Retained Earnings account.

(NOTE – SHOW ALL OF YOUR WORKINGS)

Additional Information:

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.

This table needs to be completed and submitted with the assignment as it is a compulsory component required before any grading is undertaken. Marks will be deducted if this table is not included in the assignment. Students that are registered in a solo group are not required to fill this table.

Assignment Structure:

The report should include the following components:

  1. Assignment cover page clearly stating your name and student number (refer to pg. 4)
  2. Abstract (one paragraph)
  3. Table of contents
  4. A brief introduction or overview of what the report is about.
  5. Body of the assignment with appropriate section headings
  6. Conclusion
  7. List of References.

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Skills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six Categories of Academic Integrity Breaches

PlagiarismReproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.
CollusionWorking with one or more other individuals to complete an assignment, in a way that is not authorised.
CopyingReproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
ImpersonationFalsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheatingContracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsificationManipulating or inventing data with the intent of supporting false conclusions, including manipulating images.

Source: INQAAHE, 2020

Assignment Marking Criteria

Marking CriteriaWeighting
Question 1 
From the management accounting literature: a) Discuss the role of strategic planning in adding value to an organisation’s products/services.4%
b) Explain how Activity-based Costing (ABC) can support strategic planning and the value adding processes. Include examples of the type of information and reports the management accountant can provide.4%
c) Based on your literature findings (from Part (b)), state two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.2%
Question 2 
Sales Budget1%
Production Budget1%
Direct Materials Budget1%
Direct Labour Budget1%
Manufacturing Overhead Budget1%
Ending Finished Goods Inventory Budget1%
Selling & Administration Expenses Budget1%
Expected Cash Collections Schedule1%
Expected Cash Disbursements for Materials Schedule1%
Cash Budget2%
Budgeted Income Statement2%
Budgeted Balance Sheet2%
Review the cash budget for Happy Baker. Comment on the company’s cash position in the coming year, and provide one recommendation to resolve any issue you have raised.2%
Overall Report Presentation3%
TOTAL Weight30%

Marking Rubric

 ExcellentVery GoodGoodSatisfactoryUnsatisfactory
Question 1     
From the(3.6-4 marks)(2.9-3.5 marks)(2.1-2.8 marks)(1.6 – 2 marks)(0 – 1.5 marks)
managementDemonstrate anDemonstrate aDemonstrate aDemonstrate anUnable to discuss
accountingexcellent discussionvery goodgood discussionadequatethe role of
literature:on the role ofdiscussion on theon the role ofdiscussion on thestrategic planning
a) Discuss the rolestrategic planning inrole of strategicstrategic planningrole of strategicin adding value to
of strategicadding value to anplanning inin adding value toplanning inan organisation’s
planning in addingorganisation’sadding value toan organisation’sadding value toproducts/services.
value to anproducts/services.an organisation’sproducts/servicesan organisation’s 
organisation’s products/services products/services 
products/services.     
(4 marks)     
b) Explain how(3.6-4 marks) Clear, concise, compelling explanation of how ABC can support strategic planning and the value adding processes with excellent examples of the type of information and reports the management accountant can provide.(2.9-3.5 marks)(2.1-2.8 marks)(1.6 – 2 marks)(0 – 1.5 marks)
Activity-basedA very goodA goodAn adequateUnable to provide
Costing (ABC) canexplanation ofexplanation ofexplanation ofexplanation of
support strategichow ABC canhow ABC canhow ABC canhow ABC can
planning and thesupport strategicsupport strategicsupport strategicsupport strategic
value addingplanning and theplanning and theplanning and theplanning and the
processes. Includevalue addingvalue addingvalue addingvalue adding
examples of theprocesses withprocesses withprocesses withprocesses with
type of informationvery goodgood examplesadequateinadequate
and reports theexamples of theof the type ofexamplesexamples
managementtype ofinformation andof the type ofof the type of
accountant caninformation andreports theinformation andinformation and
provide. (4 marks)reports themanagementreports thereports the
 managementaccountant canmanagementmanagement
 accountant canprovide.accountant canaccountant can
 provide. provide.provide, or is
    confusing.
c) Based on your(1.7-2   marks) Clear, concise, compelling description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(1.3-1.6 marks) Present a very good description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(0.9-1.2 marks) Present a good description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(0.5 – 0.8 marks) Present an adequate description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(0 – 0.4 marks) Unable to present a description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives, or is confusing.
literature findings
(from Part (b)),
state two key
lessons that would
inform
contemporary
organisations about
the use of ABC to
support strategic
planning and the
value adding
initiatives (2 marks)
Question 2     
Sales Budget(0.9 – 1 marks)(0.7 – 0.8 marks)(0.5 – 0.6 marks)(0.3– 0.4 marks)(0 – 0.2 marks)
(1 mark)An excellent,A very good SalesA good SalesAn adequateUnable to present
 complete andBudget with veryBudget withSales Budget,a proper Sales
 accurate Salesminimal errorsminor errorswith errorsBudget, with
 Budget   material errors.
Production Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Production Budget(0.7-0.8 marks) A very good Production Budget with very minimal errors(0.5-0.6 marks) A good Production Budget with minor errors(0.3- 0.4 marks) An adequate Production Budget, with errors(0 – 0.2 marks) Unable to present a proper Production Budget, with material
     errors in the answer.
Direct Materials Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Direct Materials Budget(0.7-0.8 marks) A very good Direct Materials Budget with very minimal errors(0.5- 0.6 marks) A good Direct Materials Budget with minor errors(0.3-0.4 marks) An adequate Direct Materials Budget, with errors(0 – 0.2 marks) Unable to present a proper Direct Materials Budget, with material errors in the answer.
Direct Labour Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Direct Labour Budget(0.7-0.8 marks) A very good Direct Labour Budget with very minimal errors(0.5- 0.6 marks) A good Direct Labour Budget with minor errors(0.3-0.4 marks) An adequate Direct Labour Budget, with errors(0 – 0.2 marks) Unable to present a proper Direct Labour Budget, with material errors in the answer.
Manufacturing Overhead Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Manufacturing Overhead Budget(0.7-0.8 marks) A very good Manufacturing Overhead Budget with very minimal errors(0.5- 0.6 marks) A good Manufacturing Overhead Budget with minor errors(0.3-0.4 marks) An adequate Manufacturing Overhead Budget, with errors(0 – 0.2 marks) Unable to present a proper Manufacturing Overhead Budget, with material errors in the answer.
Ending Finished Goods Inventory Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Ending Finished Goods Inventory Budget(0.7-0.8 marks) A very good Ending Finished Goods Inventory Budget with very minimal errors(0.5- 0.6 marks) A good Ending Finished Goods Inventory Budget with minor errors(0.3-0.4 marks) An adequate Ending Finished Goods Inventory Budget, with errors(0 – 0.2 marks) Unable to present a proper Ending Finished Goods Inventory Budget, with material errors in the answer.
Selling & Administration Expenses Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Selling & Administration Expenses Budget(0.7-0.8 marks) A very good Selling & Administration Expenses Budget with very minimal errors(0.5- 0.6 marks) A good Selling & Administration Expenses Budget with minor errors(0.3-0.4 marks) An adequate Selling & Administration Expenses Budget, with errors(0 – 0.2 marks) Unable to present a proper Selling & Administration Expenses Budget, with material errors in the answer.
Expected Cash Collections Schedule (1 mark)(0.9-1 marks) An excellent, complete and accurate Expected Cash Collections Schedule(0.7-0.8 marks) A very good Expected Cash Collections Schedule with very minimal errors(0.5- 0.6 marks) A good Expected Cash Collections Schedule with minor errors(0.3-0.4 marks) An adequate Expected Cash Collections Schedule, with errors(0 – 0.2 marks) Unable to present a proper Expected Cash Collections Schedule, with material errors in the answer.
Expected Cash Disbursements for Materials Schedule (1 mark)(0.9-1 marks) An excellent, complete and accurate Expected Cash Disbursements for Materials Schedule(0.7-0.8 marks) A very good Expected Cash Disbursements for Materials Schedule with very minimal errors(0.5- 0.6 marks) A good Expected Cash Disbursements for Materials Schedule with minor errors(0.3-0.4 marks) An adequate Expected Cash Disbursements for Materials Schedule, with errors(0 – 0.2 marks) Unable to present a proper Expected Cash Disbursements for Materials Schedule, with material errors in the answer.
Cash Budget (2 marks)(0.17-2 marks)(0.13-0.16 marks)(0.9-0.12 marks)(0.5-0.8 marks)(0 – 0.4 marks) Unable to present a proper Cash
 An excellent, complete and accurate Cash BudgetA very good Cash Budget with very minimal errorsA good Cash Budget with minor errorsAn adequate Cash Budget, with errorsBudget, with material errors in the answer.
Budgeted Income Statement (2 marks)(0.17-2 marks) An excellent, complete and accurate Budgeted Income Statement(0.13-0.16 marks) A very good Budgeted Income Statement with very minimal errors(0.9-0.12 marks) A good Budgeted Income Statement with minor errors(0.5-0.8 marks) An adequate Budgeted Income Statement, with errors(0 – 0.4 marks) Unable to present a proper Budgeted Income Statement, with material errors in the answer.
Budgeted Balance Sheet (2 marks)(0.17-2 marks) An excellent, complete and accurate Budgeted Balance Sheet(0.13-0.16 marks) A very good Budgeted Balance Sheet with very minimal errors(0.9-0.12 marks) A good Budgeted Balance Sheet with minor errors(0.5-0.8 marks) An adequate Budgeted Balance Sheet, with errors(0 – 0.4 marks) Unable to present a proper Budgeted Balance Sheet, with material errors in the answer.
Review the cash budget for Happy Baker. Comment on the company’s cash position in the coming year, and provide one recommendation to resolve any issue you have raised. (2 marks)(0.17-2 marks) Clear, concise, compelling review on the company’s cash position in the coming year, with an excellent recommendation to resolve an issue you have raised.(0.13-0.16 marks) A very good review on the company’s cash position in the coming year, with a very good recommendation to resolve an issue you have raised.(0.9-0.12 marks) A good review on the company’s cash position in the coming year, with a good recommendation to resolve an issue you have raised.(0.5-0.8 marks) An adequate review on the company’s cash position in the coming year, with an adequate recommendation to resolve an issue you have raised.(0 – 0.4 marks) Unable to present a proper review on the company’s cash position in the coming year, with no adequate recommendation to resolve an issue you have raised, or is confusing.
Overall Report Presentation marks (3 marks)(2.1-3 marks) Include all elements and is very well presented. Writing flows clearly and sections are linked very effectively. Referencing is exemplary. English is used very effectively and error-free.(1.9-2 marks) Include all elements and is well presented. Writing flows clearly and sections are linked effectively. Referencing is of a high standard. English is used effectively with very few errors present.(1.6-1.8 marks) Include all elements and is generally presented appropriately. Writing mostly flows well and sections are linked. Referencing is in accordance with guidelines. English is used effectively with few errors present.(1.1-1.5 marks) Include most elements and is adequately presented. Writing sometimes does not flow clearly leaving the paper to seem disjointed in areas. Referencing is somewhat in accordance with guidelines. Basic English is used with some errors present.(0 – 1 mark) Lack key elements and is poorly presented. Writing does not flow clearly leaving the paper to seem disjointed. Referencing is not in accordance with relevant guidelines. Basic English is used with errors present.
Total Marks (30)    /30
Assessment Details and Submission Guidelines
TrimesterT2 2021
Unit CodeHA2011
Unit TitleManagement Accounting
Assessment TypeAssignment
Assessment TitleGroup 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 Activity-based Costing (ABC) for decision-making and achievement of business goals. You also will use budgets as a planning tool by preparing a master budget for a company. (ULO 1, 6 and 7) Outline the differences between fixed costs, variable costs, and mixed costs by categorising various costs of an entity into these categoriesApply the concept of costs to various costing systems including justification of cost and system choicesImplement systems to plan and control business operations
Weight30% of the total assessments
Total Marks30
Word limitNot more than 2,500 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 DateWeek 9 – Friday 17 Sep 2021 at 5 p.m.
Submission GuidelinesAll 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 her/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. Adapted Harvard Referencing Holmes has now implemented a revised Harvard approach to referencing:   Reference sources in assignments are limited to sources which provide full text access to the source’s content for lecturers and markers.
 The Reference list should be located on a separate page at the end of the essay and titled: References.It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname. In addition, it MUST include a hyperlink to the full text of the cited reference source. For example; Hawking, P., McCarthy, B. and Stein, A. 2004. Second Wave ERP Education, Journal of Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf   All assignments will require additional in-text reference details which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of content, paragraph where the content can be found. For example; “The company decided to implement an enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4)).”   cid:image001.png@01D70919.7D6E4510     Non – Adherence to Referencing Guidelines Where students do not follow the above guidelines: Students who submit assignments which do not comply with the guidelines will incur 10% penalty for inadequate referencing.Late penalties will apply per day after a student or group has been notified of a resubmission requirements.Students whose citations are fake will be reported for academic misconduct

*Note: Students are required to form and self-enrol into groups – a maximum of 4 students per group. You will not be able to submit your group assignment unless you are OFFICIALLY enrolled into a designated group in Blackboard (even if it is a solo-group of 1). Submit the group assignment as a single document, including the Holmes official COVER SHEET. Once formed, the group membership should not be changed for the duration of the trimester.

For help with any group assignment matters, please address your email to bbhelpdesk@holmes.edu.au ensuring that your full details (Name, student ID, unit name and number) are included.

Purpose:

Assignment Specifications

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 Activity-based Costing (ABC) for decision-making and achievement of business goals. You also will use budgets as a planning tool by preparing a master budget for a company.

This assignment is to be completed by a group of 3 – 4 students. You are to self-enrol in to a group. Individual assignments will NOT be accepted, unless approved by the Unit Coordinator.

Instructions with Question 1 of the assignment.

  1. You are to refer to the management accounting literature in Question 1, particularly to use relevant academic journal articles from the following Accounting and Management Accounting Journals:

Accounting, Auditing and Accountability Journal; 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.

  • You are to select a minimum of three (3) relevant journal articles, and follow the revised Harvard approach

to referencing (on pg. 1 – 2), which include providing the hyperlink to the full text of the cited reference source.

The Assignment Structure should be as the following:

Question 2        This question is not related to Question 1.                                                                              [20 marks]

This assignment MUST be done in groups of three or four students. Individual assignments will NOT be accepted, unless approved by the Unit Coordinator. The groups are to be formed at your discretion in your respective campuses. Group conflicts must be resolved by members.

The table below needs to be used on the cover sheet of your assignment. The assignment will be marked STRICTLY based on the order in which you list student ID’s. The details below are just examples. You must fill in your respective group details.

An example only:

Group No.MemberID NumberFirst NameLast Name
1.NXX2037MickeyMouse
2.APS2094DonaldDuck
3.EMV30216YogiBear
4.AEES2104ScoobyDoo

Students are REQUIRED to use the budget templates as illustrated in the Lecture Slides on BUDGETING Topic (Topic 7). Any supplementary working done to support the amounts in the budgets should be provided.

PREPARATION OF OPERATING AND FINANCIAL BUDGETS

Happy Baker produces banana bread for resale at large grocery stores throughout Australia. The company is currently in the process of establishing a master budget on a quarterly basis for the next financial year, which ends June 30. Last year quarterly sales were as follows (1 unit = 1 batch):

First quarter 50,AAA units Second quarter 75,BBB units Third quarter 86,CCC units Fourth quarter 90,DDD units

See further instructions about last year quarterly sales figures in the table below:

Group Member No.ID NumberFirst NameLast Name
1.NXX2037MickeyMouse
2.APS2094DonaldDuck
3.EMV30216YogiBear
4.AEES2104ScoobyDoo

First quarter 50,AAA units becomes 50,037 units. AAA is the last three digits of Member 1’s ID. Second quarter 75,BBB units becomes 75,094 units. BBB is the last three digits of Member 2’s ID. Third quarter 86,CCC units becomes 86,216 units. CCC is the last three digits of Member 3’s ID. Fourth quarter 90,DDD units become 90,104 units. DDD is the last three digits of Member 4’s ID.

HA2011 MANAGEMENT ACCOUNTING ASSIGNMENT – T1 2021  

NOTE that if your group has three members only, then use the value of 80,000 units for the fourth quarter. For solo group, if approved, do contact the Unit Coordinator via email (KVega@Holmes.edu.au) who will provide you with the last year quarterly sales figures to use.

PREPARATION OF OPERATING AND FINANCIAL BUDGETS (Continued)

Unit sales are expected to increase 25 percent, and each unit is expected to sell for $15. The management prefers to maintain ending finished goods inventory equal to 20 percent of next quarter’s sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 20,000 units.

Direct Materials Purchases Budget Information

Each unit of product requires 1.75 pounds of direct materials per unit, and the cost of direct materials is $1.5 per pound. Management prefers to maintain ending raw materials inventory equal to 30 percent of next quarter’s materials needed in production. Assume raw materials inventory at the end of the fourth quarter budget periodis estimated to be 55,000 pounds.

Direct Labor Budget Information

Each unit of product requires 0.20 direct labor hours at a cost of $15 per hour.

Manufacturing Overhead Budget Information

Variable overhead costs are:

Indirect materials$0.10 per unit
Indirect labor$0.15 per unit
Other$0.10 per unit

Fixed overhead costs each quarter are:

Salaries$32,000
Rent$20,000
Depreciation$16,165

Happy Baker estimates that all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year are:

Salaries$40,000
Rent$ 5,000
Advertising$10,000
Depreciation$ 8,000
Other$ 1,000

Happy Baker has the following information pertaining to the capital expenditures and cash budgets.

Capital Expenditures

The company plans to purchase selling and administrative equipment totalling $20,000 and production equipment totalling $28,000. Both will be purchased at the end of the fourth quarter and will not affect depreciation expense in the current year.

Cash Budget

All sales are on credit. The company expects to collect 70 percent of sales in the quarter of sale, 25 percent of sales in the quarter following the sale, and 5 percent will not be collected (bad debt). Accounts receivable at the end of last year totalled $300,000, all of which will be collected in the first quarter of this coming year.

All direct materials purchases are on credit. The company expects to pay 80 percent of purchases in the quarter of purchase and 20 percent the following quarter. Accounts payable balance at the end of last year was $50,000, all of which will be paid in the first quarter of this coming year.

The cash balance at the end of last year was $35,000.

The company does not have an overdraft facility with their bank.

Assume Happy Baker will collect 25 percent of fourth quarter budgeted sales in full next year (this represents accounts receivable at the end of the fourth quarter). The following account balances are expected at the end of the fourth quarter:

  • Property, plant, and equipment (net): $320,000
  • Ordinary Shares: $1,000,000

Retained earnings at the end of last year amounted to $1,234,000.00 and no cash dividends are anticipated for the budgetperiod ending June 30.

Required:

With the information provided, assist Happy Baker in setting up their ‘Master Budget’. To do this, you will need to prepare the following budgets for coming year:

  1. Sales Budget
    1. Production Budget
    1. Direct Materials Purchases Budget
    1. Direct Labour Budget
    1. Manufacturing Overhead Budget
    1. Ending Finished Goods Inventory Budget
    1. Selling & Administration Expenses Budget
    1. Expected Cash Collections
    1. Expected Cash Disbursements for Materials
    1. Cash Budget
    1. Budgeted Income Statement
    1. Budgeted Balance Sheet*
    1. Review the cash budget for Happy Baker. Comment on the company’s cash position in the coming year, and provide one recommendation to resolve one issue you have raised.

(20 marks)

*For the balance sheet as at June 30th, there will be a difference between the final totals. This is due to calculations based on rounded off amounts. To balance the totals, simply close off this difference to the Retained Earnings account.

(NOTE – SHOW ALL OF YOUR WORKINGS)

Additional Information:

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.

This table needs to be completed and submitted with the assignment as it is a compulsory component required before any grading is undertaken. Marks will be deducted if this table is not included in the assignment. Students that are registered in a solo group are not required to fill this table.

Assignment Structure:

The report should include the following components:

  1. Assignment cover page clearly stating your name and student number (refer to pg. 4)
  2. Abstract (one paragraph)
  3. Table of contents
  4. A brief introduction or overview of what the report is about.
  5. Body of the assignment with appropriate section headings
  6. Conclusion
  7. List of References.

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Skills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six Categories of Academic Integrity Breaches

PlagiarismReproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.
CollusionWorking with one or more other individuals to complete an assignment, in a way that is not authorised.
CopyingReproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
ImpersonationFalsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheatingContracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsificationManipulating or inventing data with the intent of supporting false conclusions, including manipulating images.

Source: INQAAHE, 2020

Assignment Marking Criteria

Marking CriteriaWeighting
Question 1 
From the management accounting literature: a) Discuss the role of strategic planning in adding value to an organisation’s products/services.4%
b) Explain how Activity-based Costing (ABC) can support strategic planning and the value adding processes. Include examples of the type of information and reports the management accountant can provide.4%
c) Based on your literature findings (from Part (b)), state two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.2%
Question 2 
Sales Budget1%
Production Budget1%
Direct Materials Budget1%
Direct Labour Budget1%
Manufacturing Overhead Budget1%
Ending Finished Goods Inventory Budget1%
Selling & Administration Expenses Budget1%
Expected Cash Collections Schedule1%
Expected Cash Disbursements for Materials Schedule1%
Cash Budget2%
Budgeted Income Statement2%
Budgeted Balance Sheet2%
Review the cash budget for Happy Baker. Comment on the company’s cash position in the coming year, and provide one recommendation to resolve any issue you have raised.2%
Overall Report Presentation3%
TOTAL Weight30%

Marking Rubric

 ExcellentVery GoodGoodSatisfactoryUnsatisfactory
Question 1     
From the(3.6-4 marks)(2.9-3.5 marks)(2.1-2.8 marks)(1.6 – 2 marks)(0 – 1.5 marks)
managementDemonstrate anDemonstrate aDemonstrate aDemonstrate anUnable to discuss
accountingexcellent discussionvery goodgood discussionadequatethe role of
literature:on the role ofdiscussion on theon the role ofdiscussion on thestrategic planning
a) Discuss the rolestrategic planning inrole of strategicstrategic planningrole of strategicin adding value to
of strategicadding value to anplanning inin adding value toplanning inan organisation’s
planning in addingorganisation’sadding value toan organisation’sadding value toproducts/services.
value to anproducts/services.an organisation’sproducts/servicesan organisation’s 
organisation’s products/services products/services 
products/services.     
(4 marks)     
b) Explain how(3.6-4 marks) Clear, concise, compelling explanation of how ABC can support strategic planning and the value adding processes with excellent examples of the type of information and reports the management accountant can provide.(2.9-3.5 marks)(2.1-2.8 marks)(1.6 – 2 marks)(0 – 1.5 marks)
Activity-basedA very goodA goodAn adequateUnable to provide
Costing (ABC) canexplanation ofexplanation ofexplanation ofexplanation of
support strategichow ABC canhow ABC canhow ABC canhow ABC can
planning and thesupport strategicsupport strategicsupport strategicsupport strategic
value addingplanning and theplanning and theplanning and theplanning and the
processes. Includevalue addingvalue addingvalue addingvalue adding
examples of theprocesses withprocesses withprocesses withprocesses with
type of informationvery goodgood examplesadequateinadequate
and reports theexamples of theof the type ofexamplesexamples
managementtype ofinformation andof the type ofof the type of
accountant caninformation andreports theinformation andinformation and
provide. (4 marks)reports themanagementreports thereports the
 managementaccountant canmanagementmanagement
 accountant canprovide.accountant canaccountant can
 provide. provide.provide, or is
    confusing.
c) Based on your(1.7-2   marks) Clear, concise, compelling description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(1.3-1.6 marks) Present a very good description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(0.9-1.2 marks) Present a good description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(0.5 – 0.8 marks) Present an adequate description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(0 – 0.4 marks) Unable to present a description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives, or is confusing.
literature findings
(from Part (b)),
state two key
lessons that would
inform
contemporary
organisations about
the use of ABC to
support strategic
planning and the
value adding
initiatives (2 marks)
Question 2     
Sales Budget(0.9 – 1 marks)(0.7 – 0.8 marks)(0.5 – 0.6 marks)(0.3– 0.4 marks)(0 – 0.2 marks)
(1 mark)An excellent,A very good SalesA good SalesAn adequateUnable to present
 complete andBudget with veryBudget withSales Budget,a proper Sales
 accurate Salesminimal errorsminor errorswith errorsBudget, with
 Budget   material errors.
Production Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Production Budget(0.7-0.8 marks) A very good Production Budget with very minimal errors(0.5-0.6 marks) A good Production Budget with minor errors(0.3- 0.4 marks) An adequate Production Budget, with errors(0 – 0.2 marks) Unable to present a proper Production Budget, with material
     errors in the answer.
Direct Materials Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Direct Materials Budget(0.7-0.8 marks) A very good Direct Materials Budget with very minimal errors(0.5- 0.6 marks) A good Direct Materials Budget with minor errors(0.3-0.4 marks) An adequate Direct Materials Budget, with errors(0 – 0.2 marks) Unable to present a proper Direct Materials Budget, with material errors in the answer.
Direct Labour Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Direct Labour Budget(0.7-0.8 marks) A very good Direct Labour Budget with very minimal errors(0.5- 0.6 marks) A good Direct Labour Budget with minor errors(0.3-0.4 marks) An adequate Direct Labour Budget, with errors(0 – 0.2 marks) Unable to present a proper Direct Labour Budget, with material errors in the answer.
Manufacturing Overhead Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Manufacturing Overhead Budget(0.7-0.8 marks) A very good Manufacturing Overhead Budget with very minimal errors(0.5- 0.6 marks) A good Manufacturing Overhead Budget with minor errors(0.3-0.4 marks) An adequate Manufacturing Overhead Budget, with errors(0 – 0.2 marks) Unable to present a proper Manufacturing Overhead Budget, with material errors in the answer.
Ending Finished Goods Inventory Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Ending Finished Goods Inventory Budget(0.7-0.8 marks) A very good Ending Finished Goods Inventory Budget with very minimal errors(0.5- 0.6 marks) A good Ending Finished Goods Inventory Budget with minor errors(0.3-0.4 marks) An adequate Ending Finished Goods Inventory Budget, with errors(0 – 0.2 marks) Unable to present a proper Ending Finished Goods Inventory Budget, with material errors in the answer.
Selling & Administration Expenses Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Selling & Administration Expenses Budget(0.7-0.8 marks) A very good Selling & Administration Expenses Budget with very minimal errors(0.5- 0.6 marks) A good Selling & Administration Expenses Budget with minor errors(0.3-0.4 marks) An adequate Selling & Administration Expenses Budget, with errors(0 – 0.2 marks) Unable to present a proper Selling & Administration Expenses Budget, with material errors in the answer.
Expected Cash Collections Schedule (1 mark)(0.9-1 marks) An excellent, complete and accurate Expected Cash Collections Schedule(0.7-0.8 marks) A very good Expected Cash Collections Schedule with very minimal errors(0.5- 0.6 marks) A good Expected Cash Collections Schedule with minor errors(0.3-0.4 marks) An adequate Expected Cash Collections Schedule, with errors(0 – 0.2 marks) Unable to present a proper Expected Cash Collections Schedule, with material errors in the answer.
Expected Cash Disbursements for Materials Schedule (1 mark)(0.9-1 marks) An excellent, complete and accurate Expected Cash Disbursements for Materials Schedule(0.7-0.8 marks) A very good Expected Cash Disbursements for Materials Schedule with very minimal errors(0.5- 0.6 marks) A good Expected Cash Disbursements for Materials Schedule with minor errors(0.3-0.4 marks) An adequate Expected Cash Disbursements for Materials Schedule, with errors(0 – 0.2 marks) Unable to present a proper Expected Cash Disbursements for Materials Schedule, with material errors in the answer.
Cash Budget (2 marks)(0.17-2 marks)(0.13-0.16 marks)(0.9-0.12 marks)(0.5-0.8 marks)(0 – 0.4 marks) Unable to present a proper Cash
 An excellent, complete and accurate Cash BudgetA very good Cash Budget with very minimal errorsA good Cash Budget with minor errorsAn adequate Cash Budget, with errorsBudget, with material errors in the answer.
Budgeted Income Statement (2 marks)(0.17-2 marks) An excellent, complete and accurate Budgeted Income Statement(0.13-0.16 marks) A very good Budgeted Income Statement with very minimal errors(0.9-0.12 marks) A good Budgeted Income Statement with minor errors(0.5-0.8 marks) An adequate Budgeted Income Statement, with errors(0 – 0.4 marks) Unable to present a proper Budgeted Income Statement, with material errors in the answer.
Budgeted Balance Sheet (2 marks)(0.17-2 marks) An excellent, complete and accurate Budgeted Balance Sheet(0.13-0.16 marks) A very good Budgeted Balance Sheet with very minimal errors(0.9-0.12 marks) A good Budgeted Balance Sheet with minor errors(0.5-0.8 marks) An adequate Budgeted Balance Sheet, with errors(0 – 0.4 marks) Unable to present a proper Budgeted Balance Sheet, with material errors in the answer.
Review the cash budget for Happy Baker. Comment on the company’s cash position in the coming year, and provide one recommendation to resolve any issue you have raised. (2 marks)(0.17-2 marks) Clear, concise, compelling review on the company’s cash position in the coming year, with an excellent recommendation to resolve an issue you have raised.(0.13-0.16 marks) A very good review on the company’s cash position in the coming year, with a very good recommendation to resolve an issue you have raised.(0.9-0.12 marks) A good review on the company’s cash position in the coming year, with a good recommendation to resolve an issue you have raised.(0.5-0.8 marks) An adequate review on the company’s cash position in the coming year, with an adequate recommendation to resolve an issue you have raised.(0 – 0.4 marks) Unable to present a proper review on the company’s cash position in the coming year, with no adequate recommendation to resolve an issue you have raised, or is confusing.
Overall Report Presentation marks (3 marks)(2.1-3 marks) Include all elements and is very well presented. Writing flows clearly and sections are linked very effectively. Referencing is exemplary. English is used very effectively and error-free.(1.9-2 marks) Include all elements and is well presented. Writing flows clearly and sections are linked effectively. Referencing is of a high standard. English is used effectively with very few errors present.(1.6-1.8 marks) Include all elements and is generally presented appropriately. Writing mostly flows well and sections are linked. Referencing is in accordance with guidelines. English is used effectively with few errors present.(1.1-1.5 marks) Include most elements and is adequately presented. Writing sometimes does not flow clearly leaving the paper to seem disjointed in areas. Referencing is somewhat in accordance with guidelines. Basic English is used with some errors present.(0 – 1 mark) Lack key elements and is poorly presented. Writing does not flow clearly leaving the paper to seem disjointed. Referencing is not in accordance with relevant guidelines. Basic English is used with errors present.
Total Marks (30)    /30
Assessment Details and Submission Guidelines
TrimesterT2 2021
Unit CodeHA2011
Unit TitleManagement Accounting
Assessment TypeAssignment
Assessment TitleGroup 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 Activity-based Costing (ABC) for decision-making and achievement of business goals. You also will use budgets as a planning tool by preparing a master budget for a company. (ULO 1, 6 and 7) Outline the differences between fixed costs, variable costs, and mixed costs by categorising various costs of an entity into these categoriesApply the concept of costs to various costing systems including justification of cost and system choicesImplement systems to plan and control business operations
Weight30% of the total assessments
Total Marks30
Word limitNot more than 2,500 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 DateWeek 9 – Friday 17 Sep 2021 at 5 p.m.
Submission GuidelinesAll 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 her/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. Adapted Harvard Referencing Holmes has now implemented a revised Harvard approach to referencing:   Reference sources in assignments are limited to sources which provide full text access to the source’s content for lecturers and markers.
 The Reference list should be located on a separate page at the end of the essay and titled: References.It should include the details of all the in-text citations, arranged alphabetically A-Z by author surname. In addition, it MUST include a hyperlink to the full text of the cited reference source. For example; Hawking, P., McCarthy, B. and Stein, A. 2004. Second Wave ERP Education, Journal of Information Systems Education, Fall, http://jise.org/Volume15/n3/JISEv15n3p327.pdf   All assignments will require additional in-text reference details which will consist of the surname of the author/authors or name of the authoring body, year of publication, page number of content, paragraph where the content can be found. For example; “The company decided to implement an enterprise wide data warehouse business intelligence strategies (Hawking et al, 2004, p3(4)).”   cid:image001.png@01D70919.7D6E4510     Non – Adherence to Referencing Guidelines Where students do not follow the above guidelines: Students who submit assignments which do not comply with the guidelines will incur 10% penalty for inadequate referencing.Late penalties will apply per day after a student or group has been notified of a resubmission requirements.Students whose citations are fake will be reported for academic misconduct

*Note: Students are required to form and self-enrol into groups – a maximum of 4 students per group. You will not be able to submit your group assignment unless you are OFFICIALLY enrolled into a designated group in Blackboard (even if it is a solo-group of 1). Submit the group assignment as a single document, including the Holmes official COVER SHEET. Once formed, the group membership should not be changed for the duration of the trimester.

For help with any group assignment matters, please address your email to bbhelpdesk@holmes.edu.au ensuring that your full details (Name, student ID, unit name and number) are included.

Purpose:

Assignment Specifications

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 Activity-based Costing (ABC) for decision-making and achievement of business goals. You also will use budgets as a planning tool by preparing a master budget for a company.

This assignment is to be completed by a group of 3 – 4 students. You are to self-enrol in to a group. Individual assignments will NOT be accepted, unless approved by the Unit Coordinator.

Instructions with Question 1 of the assignment.

  1. You are to refer to the management accounting literature in Question 1, particularly to use relevant academic journal articles from the following Accounting and Management Accounting Journals:

Accounting, Auditing and Accountability Journal; 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.

  • You are to select a minimum of three (3) relevant journal articles, and follow the revised Harvard approach

to referencing (on pg. 1 – 2), which include providing the hyperlink to the full text of the cited reference source.

The Assignment Structure should be as the following:

Question 2        This question is not related to Question 1.                                                                              [20 marks]

This assignment MUST be done in groups of three or four students. Individual assignments will NOT be accepted, unless approved by the Unit Coordinator. The groups are to be formed at your discretion in your respective campuses. Group conflicts must be resolved by members.

The table below needs to be used on the cover sheet of your assignment. The assignment will be marked STRICTLY based on the order in which you list student ID’s. The details below are just examples. You must fill in your respective group details.

An example only:

Group No.MemberID NumberFirst NameLast Name
1.NXX2037MickeyMouse
2.APS2094DonaldDuck
3.EMV30216YogiBear
4.AEES2104ScoobyDoo

Students are REQUIRED to use the budget templates as illustrated in the Lecture Slides on BUDGETING Topic (Topic 7). Any supplementary working done to support the amounts in the budgets should be provided.

PREPARATION OF OPERATING AND FINANCIAL BUDGETS

Happy Baker produces banana bread for resale at large grocery stores throughout Australia. The company is currently in the process of establishing a master budget on a quarterly basis for the next financial year, which ends June 30. Last year quarterly sales were as follows (1 unit = 1 batch):

First quarter 50,AAA units Second quarter 75,BBB units Third quarter 86,CCC units Fourth quarter 90,DDD units

See further instructions about last year quarterly sales figures in the table below:

Group Member No.ID NumberFirst NameLast Name
1.NXX2037MickeyMouse
2.APS2094DonaldDuck
3.EMV30216YogiBear
4.AEES2104ScoobyDoo

First quarter 50,AAA units becomes 50,037 units. AAA is the last three digits of Member 1’s ID. Second quarter 75,BBB units becomes 75,094 units. BBB is the last three digits of Member 2’s ID. Third quarter 86,CCC units becomes 86,216 units. CCC is the last three digits of Member 3’s ID. Fourth quarter 90,DDD units become 90,104 units. DDD is the last three digits of Member 4’s ID.

HA2011 MANAGEMENT ACCOUNTING ASSIGNMENT – T1 2021  

NOTE that if your group has three members only, then use the value of 80,000 units for the fourth quarter. For solo group, if approved, do contact the Unit Coordinator via email (KVega@Holmes.edu.au) who will provide you with the last year quarterly sales figures to use.

PREPARATION OF OPERATING AND FINANCIAL BUDGETS (Continued)

Unit sales are expected to increase 25 percent, and each unit is expected to sell for $15. The management prefers to maintain ending finished goods inventory equal to 20 percent of next quarter’s sales. Assume finished goods inventory at the end of the fourth quarter budget period is estimated to be 20,000 units.

Direct Materials Purchases Budget Information

Each unit of product requires 1.75 pounds of direct materials per unit, and the cost of direct materials is $1.5 per pound. Management prefers to maintain ending raw materials inventory equal to 30 percent of next quarter’s materials needed in production. Assume raw materials inventory at the end of the fourth quarter budget periodis estimated to be 55,000 pounds.

Direct Labor Budget Information

Each unit of product requires 0.20 direct labor hours at a cost of $15 per hour.

Manufacturing Overhead Budget Information

Variable overhead costs are:

Indirect materials$0.10 per unit
Indirect labor$0.15 per unit
Other$0.10 per unit

Fixed overhead costs each quarter are:

Salaries$32,000
Rent$20,000
Depreciation$16,165

Happy Baker estimates that all selling and administrative costs are fixed. Quarterly selling and administrative cost estimates for the coming year are:

Salaries$40,000
Rent$ 5,000
Advertising$10,000
Depreciation$ 8,000
Other$ 1,000

Happy Baker has the following information pertaining to the capital expenditures and cash budgets.

Capital Expenditures

The company plans to purchase selling and administrative equipment totalling $20,000 and production equipment totalling $28,000. Both will be purchased at the end of the fourth quarter and will not affect depreciation expense in the current year.

Cash Budget

All sales are on credit. The company expects to collect 70 percent of sales in the quarter of sale, 25 percent of sales in the quarter following the sale, and 5 percent will not be collected (bad debt). Accounts receivable at the end of last year totalled $300,000, all of which will be collected in the first quarter of this coming year.

All direct materials purchases are on credit. The company expects to pay 80 percent of purchases in the quarter of purchase and 20 percent the following quarter. Accounts payable balance at the end of last year was $50,000, all of which will be paid in the first quarter of this coming year.

The cash balance at the end of last year was $35,000.

The company does not have an overdraft facility with their bank.

Assume Happy Baker will collect 25 percent of fourth quarter budgeted sales in full next year (this represents accounts receivable at the end of the fourth quarter). The following account balances are expected at the end of the fourth quarter:

  • Property, plant, and equipment (net): $320,000
  • Ordinary Shares: $1,000,000

Retained earnings at the end of last year amounted to $1,234,000.00 and no cash dividends are anticipated for the budgetperiod ending June 30.

Required:

With the information provided, assist Happy Baker in setting up their ‘Master Budget’. To do this, you will need to prepare the following budgets for coming year:

  1. Sales Budget
    1. Production Budget
    1. Direct Materials Purchases Budget
    1. Direct Labour Budget
    1. Manufacturing Overhead Budget
    1. Ending Finished Goods Inventory Budget
    1. Selling & Administration Expenses Budget
    1. Expected Cash Collections
    1. Expected Cash Disbursements for Materials
    1. Cash Budget
    1. Budgeted Income Statement
    1. Budgeted Balance Sheet*
    1. Review the cash budget for Happy Baker. Comment on the company’s cash position in the coming year, and provide one recommendation to resolve one issue you have raised.

(20 marks)

*For the balance sheet as at June 30th, there will be a difference between the final totals. This is due to calculations based on rounded off amounts. To balance the totals, simply close off this difference to the Retained Earnings account.

(NOTE – SHOW ALL OF YOUR WORKINGS)

Additional Information:

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.

This table needs to be completed and submitted with the assignment as it is a compulsory component required before any grading is undertaken. Marks will be deducted if this table is not included in the assignment. Students that are registered in a solo group are not required to fill this table.

Assignment Structure:

The report should include the following components:

  1. Assignment cover page clearly stating your name and student number (refer to pg. 4)
  2. Abstract (one paragraph)
  3. Table of contents
  4. A brief introduction or overview of what the report is about.
  5. Body of the assignment with appropriate section headings
  6. Conclusion
  7. List of References.

Academic Integrity

Holmes Institute is committed to ensuring and upholding Academic Integrity, as Academic Integrity is integral to maintaining academic quality and the reputation of Holmes’ graduates. Accordingly, all assessment tasks need to comply with academic integrity guidelines. Table 1 identifies the six categories of Academic Integrity breaches. If you have any questions about Academic Integrity issues related to your assessment tasks, please consult your lecturer or tutor for relevant referencing guidelines and support resources. Many of these resources can also be found through the Study Skills link on Blackboard.

Academic Integrity breaches are a serious offence punishable by penalties that may range from deduction of marks, failure of the assessment task or unit involved, suspension of course enrolment, or cancellation of course enrolment.

Table 1: Six Categories of Academic Integrity Breaches

PlagiarismReproducing the work of someone else without attribution. When a student submits their own work on multiple occasions this is known as self-plagiarism.
CollusionWorking with one or more other individuals to complete an assignment, in a way that is not authorised.
CopyingReproducing and submitting the work of another student, with or without their knowledge. If a student fails to take reasonable precautions to prevent their own original work from being copied, this may also be considered an offence.
ImpersonationFalsely presenting oneself, or engaging someone else to present as oneself, in an in-person examination.
Contract cheatingContracting a third party to complete an assessment task, generally in exchange for money or other manner of payment.
Data fabrication and falsificationManipulating or inventing data with the intent of supporting false conclusions, including manipulating images.

Source: INQAAHE, 2020

Assignment Marking Criteria

Marking CriteriaWeighting
Question 1 
From the management accounting literature: a) Discuss the role of strategic planning in adding value to an organisation’s products/services.4%
b) Explain how Activity-based Costing (ABC) can support strategic planning and the value adding processes. Include examples of the type of information and reports the management accountant can provide.4%
c) Based on your literature findings (from Part (b)), state two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.2%
Question 2 
Sales Budget1%
Production Budget1%
Direct Materials Budget1%
Direct Labour Budget1%
Manufacturing Overhead Budget1%
Ending Finished Goods Inventory Budget1%
Selling & Administration Expenses Budget1%
Expected Cash Collections Schedule1%
Expected Cash Disbursements for Materials Schedule1%
Cash Budget2%
Budgeted Income Statement2%
Budgeted Balance Sheet2%
Review the cash budget for Happy Baker. Comment on the company’s cash position in the coming year, and provide one recommendation to resolve any issue you have raised.2%
Overall Report Presentation3%
TOTAL Weight30%

Marking Rubric

 ExcellentVery GoodGoodSatisfactoryUnsatisfactory
Question 1     
From the(3.6-4 marks)(2.9-3.5 marks)(2.1-2.8 marks)(1.6 – 2 marks)(0 – 1.5 marks)
managementDemonstrate anDemonstrate aDemonstrate aDemonstrate anUnable to discuss
accountingexcellent discussionvery goodgood discussionadequatethe role of
literature:on the role ofdiscussion on theon the role ofdiscussion on thestrategic planning
a) Discuss the rolestrategic planning inrole of strategicstrategic planningrole of strategicin adding value to
of strategicadding value to anplanning inin adding value toplanning inan organisation’s
planning in addingorganisation’sadding value toan organisation’sadding value toproducts/services.
value to anproducts/services.an organisation’sproducts/servicesan organisation’s 
organisation’s products/services products/services 
products/services.     
(4 marks)     
b) Explain how(3.6-4 marks) Clear, concise, compelling explanation of how ABC can support strategic planning and the value adding processes with excellent examples of the type of information and reports the management accountant can provide.(2.9-3.5 marks)(2.1-2.8 marks)(1.6 – 2 marks)(0 – 1.5 marks)
Activity-basedA very goodA goodAn adequateUnable to provide
Costing (ABC) canexplanation ofexplanation ofexplanation ofexplanation of
support strategichow ABC canhow ABC canhow ABC canhow ABC can
planning and thesupport strategicsupport strategicsupport strategicsupport strategic
value addingplanning and theplanning and theplanning and theplanning and the
processes. Includevalue addingvalue addingvalue addingvalue adding
examples of theprocesses withprocesses withprocesses withprocesses with
type of informationvery goodgood examplesadequateinadequate
and reports theexamples of theof the type ofexamplesexamples
managementtype ofinformation andof the type ofof the type of
accountant caninformation andreports theinformation andinformation and
provide. (4 marks)reports themanagementreports thereports the
 managementaccountant canmanagementmanagement
 accountant canprovide.accountant canaccountant can
 provide. provide.provide, or is
    confusing.
c) Based on your(1.7-2   marks) Clear, concise, compelling description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(1.3-1.6 marks) Present a very good description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(0.9-1.2 marks) Present a good description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(0.5 – 0.8 marks) Present an adequate description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives.(0 – 0.4 marks) Unable to present a description of two key lessons that would inform contemporary organisations about the use of ABC to support strategic planning and the value adding initiatives, or is confusing.
literature findings
(from Part (b)),
state two key
lessons that would
inform
contemporary
organisations about
the use of ABC to
support strategic
planning and the
value adding
initiatives (2 marks)
Question 2     
Sales Budget(0.9 – 1 marks)(0.7 – 0.8 marks)(0.5 – 0.6 marks)(0.3– 0.4 marks)(0 – 0.2 marks)
(1 mark)An excellent,A very good SalesA good SalesAn adequateUnable to present
 complete andBudget with veryBudget withSales Budget,a proper Sales
 accurate Salesminimal errorsminor errorswith errorsBudget, with
 Budget   material errors.
Production Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Production Budget(0.7-0.8 marks) A very good Production Budget with very minimal errors(0.5-0.6 marks) A good Production Budget with minor errors(0.3- 0.4 marks) An adequate Production Budget, with errors(0 – 0.2 marks) Unable to present a proper Production Budget, with material
     errors in the answer.
Direct Materials Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Direct Materials Budget(0.7-0.8 marks) A very good Direct Materials Budget with very minimal errors(0.5- 0.6 marks) A good Direct Materials Budget with minor errors(0.3-0.4 marks) An adequate Direct Materials Budget, with errors(0 – 0.2 marks) Unable to present a proper Direct Materials Budget, with material errors in the answer.
Direct Labour Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Direct Labour Budget(0.7-0.8 marks) A very good Direct Labour Budget with very minimal errors(0.5- 0.6 marks) A good Direct Labour Budget with minor errors(0.3-0.4 marks) An adequate Direct Labour Budget, with errors(0 – 0.2 marks) Unable to present a proper Direct Labour Budget, with material errors in the answer.
Manufacturing Overhead Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Manufacturing Overhead Budget(0.7-0.8 marks) A very good Manufacturing Overhead Budget with very minimal errors(0.5- 0.6 marks) A good Manufacturing Overhead Budget with minor errors(0.3-0.4 marks) An adequate Manufacturing Overhead Budget, with errors(0 – 0.2 marks) Unable to present a proper Manufacturing Overhead Budget, with material errors in the answer.
Ending Finished Goods Inventory Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Ending Finished Goods Inventory Budget(0.7-0.8 marks) A very good Ending Finished Goods Inventory Budget with very minimal errors(0.5- 0.6 marks) A good Ending Finished Goods Inventory Budget with minor errors(0.3-0.4 marks) An adequate Ending Finished Goods Inventory Budget, with errors(0 – 0.2 marks) Unable to present a proper Ending Finished Goods Inventory Budget, with material errors in the answer.
Selling & Administration Expenses Budget (1 mark)(0.9-1 marks) An excellent, complete and accurate Selling & Administration Expenses Budget(0.7-0.8 marks) A very good Selling & Administration Expenses Budget with very minimal errors(0.5- 0.6 marks) A good Selling & Administration Expenses Budget with minor errors(0.3-0.4 marks) An adequate Selling & Administration Expenses Budget, with errors(0 – 0.2 marks) Unable to present a proper Selling & Administration Expenses Budget, with material errors in the answer.
Expected Cash Collections Schedule (1 mark)(0.9-1 marks) An excellent, complete and accurate Expected Cash Collections Schedule(0.7-0.8 marks) A very good Expected Cash Collections Schedule with very minimal errors(0.5- 0.6 marks) A good Expected Cash Collections Schedule with minor errors(0.3-0.4 marks) An adequate Expected Cash Collections Schedule, with errors(0 – 0.2 marks) Unable to present a proper Expected Cash Collections Schedule, with material errors in the answer.
Expected Cash Disbursements for Materials Schedule (1 mark)(0.9-1 marks) An excellent, complete and accurate Expected Cash Disbursements for Materials Schedule(0.7-0.8 marks) A very good Expected Cash Disbursements for Materials Schedule with very minimal errors(0.5- 0.6 marks) A good Expected Cash Disbursements for Materials Schedule with minor errors(0.3-0.4 marks) An adequate Expected Cash Disbursements for Materials Schedule, with errors(0 – 0.2 marks) Unable to present a proper Expected Cash Disbursements for Materials Schedule, with material errors in the answer.
Cash Budget (2 marks)(0.17-2 marks)(0.13-0.16 marks)(0.9-0.12 marks)(0.5-0.8 marks)(0 – 0.4 marks) Unable to present a proper Cash
 An excellent, complete and accurate Cash BudgetA very good Cash Budget with very minimal errorsA good Cash Budget with minor errorsAn adequate Cash Budget, with errorsBudget, with material errors in the answer.
Budgeted Income Statement (2 marks)(0.17-2 marks) An excellent, complete and accurate Budgeted Income Statement(0.13-0.16 marks) A very good Budgeted Income Statement with very minimal errors(0.9-0.12 marks) A good Budgeted Income Statement with minor errors(0.5-0.8 marks) An adequate Budgeted Income Statement, with errors(0 – 0.4 marks) Unable to present a proper Budgeted Income Statement, with material errors in the answer.
Budgeted Balance Sheet (2 marks)(0.17-2 marks) An excellent, complete and accurate Budgeted Balance Sheet(0.13-0.16 marks) A very good Budgeted Balance Sheet with very minimal errors(0.9-0.12 marks) A good Budgeted Balance Sheet with minor errors(0.5-0.8 marks) An adequate Budgeted Balance Sheet, with errors(0 – 0.4 marks) Unable to present a proper Budgeted Balance Sheet, with material errors in the answer.
Review the cash budget for Happy Baker. Comment on the company’s cash position in the coming year, and provide one recommendation to resolve any issue you have raised. (2 marks)(0.17-2 marks) Clear, concise, compelling review on the company’s cash position in the coming year, with an excellent recommendation to resolve an issue you have raised.(0.13-0.16 marks) A very good review on the company’s cash position in the coming year, with a very good recommendation to resolve an issue you have raised.(0.9-0.12 marks) A good review on the company’s cash position in the coming year, with a good recommendation to resolve an issue you have raised.(0.5-0.8 marks) An adequate review on the company’s cash position in the coming year, with an adequate recommendation to resolve an issue you have raised.(0 – 0.4 marks) Unable to present a proper review on the company’s cash position in the coming year, with no adequate recommendation to resolve an issue you have raised, or is confusing.
Overall Report Presentation marks (3 marks)(2.1-3 marks) Include all elements and is very well presented. Writing flows clearly and sections are linked very effectively. Referencing is exemplary. English is used very effectively and error-free.(1.9-2 marks) Include all elements and is well presented. Writing flows clearly and sections are linked effectively. Referencing is of a high standard. English is used effectively with very few errors present.(1.6-1.8 marks) Include all elements and is generally presented appropriately. Writing mostly flows well and sections are linked. Referencing is in accordance with guidelines. English is used effectively with few errors present.(1.1-1.5 marks) Include most elements and is adequately presented. Writing sometimes does not flow clearly leaving the paper to seem disjointed in areas. Referencing is somewhat in accordance with guidelines. Basic English is used with some errors present.(0 – 1 mark) Lack key elements and is poorly presented. Writing does not flow clearly leaving the paper to seem disjointed. Referencing is not in accordance with relevant guidelines. Basic English is used with errors present.
Total Marks (30)    /30

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