HI5017 Managerial accounting assignment help
Assessment Details and Submission Guidelines | |
Trimester | T1 2019 |
Unit Code | HI5017 |
Unit Title | Managerial Accounting |
Assessment Type | Individual Assignment |
Assessment Title | Management Accounting Case Studies |
Purpose of the assessment (with ULO Mapping) | Students are required to develop their understanding of cost concepts, and demonstrate their ability to apply their knowledge of cost concepts to a service-based company. Additionally, students are to critically evaluate a journal article to analyse the practical use of accounting information to real-life companies’ decision-making and achievement of business goals (ULO 1, 5, 6, 7, and 8) |
Weight | 30% of the total assessments |
Total Marks | 30 |
Word limit | Not more than 3,000 words. Please use “word count” and include in assignment. |
Due Date | Week 10 Sunday 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 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. |
Purpose:
Individual Assignment Specifications
This assignment aims at developing your understanding of cost concepts, and demonstrate your ability to apply your knowledge of cost concepts to a service-based company. Additionally, you are to critically evaluate a journal article to analyse the practical use of accounting information to real-life companies’ decision-making and achievement of business goals.
Assignment Structure should be as the following: Part A: Case Study Analysis (15 Marks)
You are to answer the 5 questions relating to the case study of a child care business. It includes both theory
and calculation type questions. Do show your working for the calculations.
Case Background
Douglas and Pamela Frank are a married couple. They both worked for a railroad company for 30 years. At age 57, Douglas and age 52, Pamela retired and moved to the small town of Ovilla, Texas, which has a population of approximately 3,500 residents. When the Franks moved to the town, they decided to start a child care business in their home called Nanna’s House. Nanna’s House is licensed by the state. The state charges an annual fee of $225 to maintain the license. Insurance is required at a cost of $3,840 annually. The facility is licensed to care for a maximum of six children. The Franks charge a fee of $800 per month for each child. The monthly fee is based on a full day of care, from 8:00 a.m. to 4:00 p.m. If additional time is required beyond 4:00 p.m., parents must pay an additional charge of $15 per hour for each child. The couple provides two meals and a snack for the children. The cost of the meals and snack is $3.20 per child per day. There are six children currently enrolled.
The facility is very nice. It is an 820 square foot addition to their home that was built in 1964. The Franks purchased the home and completed the renovations for $79,500 and they believe the addition has a useful life of 25 years. The facility has a large open space for play, reading, and other activities. There is a section for sleeping which contains small cots. The facility is equipped with a small kitchen, two bathrooms and a small laundry area. The daycare increased the Franks’ utility cost by $50 each month.
During the first week of operations, the washer and dryer stopped working. Both appliances were old and had been used by the couple for many years. The old appliances cost a total of $440. While a laundry room was not initially a necessity, it became increasingly important for laundering the soiled clothes of the children, blankets, and sheets. A company nearby, Red Oak Laundry and Dry Cleaning, can launder clothing for the Franks, including pick-up and delivery, for $52 per month. Alternatively, the Franks can take clothes to the laundromat once a week, which is three miles away (one way). The applicable mileage rate is $0.56/mile. They can launder the clothes themselves at a cost of $8 per week. The self-service alternative does not include detergent or fabric sheets. The couple would need to purchase these items in order to use the laundromat. Purchasing laundry supplies in bulk from MegaMart would cost $35 every quarter. The final alternative is for the Franks to purchase a washer and dryer. The cost of the appliances is: washer $420 and dryer $380. The additional accessories for both appliances, needed for installation, cost $43.72. The store will deliver the appliances at a total cost of $35. The cost of installing the appliances is free. Both appliances are expected to last 8 years. According to the manufacturer the washer will increase energy costs by $120 per year. The dryer will increase energy costs by $145 per year.
The Franks need some assistance in decision making
and evaluation. They have contacted you, their
accountant, to provide
some advice.
Required:
Respond to the following questions to help Douglas and Pamela make their decisions. (If necessary, the Franks will use straight line depreciation. For monthly calculations, use 4.33 weeks per month.)
- Consider the different types of costs discussed in this unit. List any three (3) types of costs and provide one specific example of each cost from the case. (3 marks)
- Based on the information provided, what information is relevant to the decision to purchase the appliances? What information is irrelevant to the decision to purchase the appliances? Why? (3 marks)
- What could it cost the couple to launder clothes? Show your detailed calculations for each option. (3 marks)
- The Franks have a waiting list for their day care. They can hire an employee for $9 per hour for 40 hours each week. With the additional employee, the Franks can accept three additional children. Should the Franks hire the additional employee? Show your detailed calculations. (3 marks)
- The Franks home can accommodate a maximum of nine children. They can move the day care from their home to rented space in town, which can accommodate up to 14 children. The space will cost $650 per month and the utilities will cost $125 per month. Additionally, insurance will now cost the Franks $5,000 per year. Per state regulations, each adult can supervise no more than three children. As their accountant, prepare a letter to the Franks advising them on their space options. Should they continue to operate the facility at home or should they rent space in town? How many children should they accept? How many employees will they need to hire? Show your detailed calculations for each scenario. (3 marks)
Part B: Journal Article Critique (12 Marks)
You are to read the journal article by Nonaka and Kenney (1991), “Towards a new theory of innovation management: A case study comparing Canon, Inc. and Apple Computer, Inc.”, Journal of Engineering and Technology Management, 8, p. 67-83. The journal article is attached as a separate file in Blackboard under the folder <Assignment>.
Required:
Critically evaluate the role of management accounting systems and the provision of accounting information in the innovation process of these two companies by answering the 3 questions below:
- Identify the components of the management accounting system in each of the two companies, and discuss their relevance in enabling decisions to be made efficiently and effectively. Include examples in your answer. (4 marks)
- The article describes the innovation process in a firm as ‘a process of information creation’, and a firm needs to organise themselves ‘to transmit the new information’. Explain how management accounting contributes to this innovation process. Include in your discussion two (2) specific examples from each of the two companies mentioned in the journal article. (4 marks)
- Provide four (4) specific outcomes or lessons learned from the article’s research findings that will be useful for management accountants in Australian companies to learn from, and justify your answer [i.e. provide 2 outcomes from each company]. (4 marks)
Marking Criteria
Marking Criteria | Weighting |
Part A: Case Study Analysis | |
1. Consider the different types of costs discussed in this unit. List any three (3) types of costs and provide one specific example of each cost from the case. | 3% |
2. Based on the information provided, what information is relevant to the decision to purchase the appliances? What information is irrelevant to the decision to purchase the appliances? Why? | 3% |
3. What could it cost the couple to launder clothes? Show your detailed calculations for each option. | 3% |
4. The Franks have a waiting list for their day care. They can hire an employee for $9 per hour for 40 hours each week. With the additional employee, the Franks can accept three additional children. Should the Franks hire the additional employee? Show your detailed calculations. | 3% |
5. The Franks home can accommodate a maximum of nine children. They can move the day care from their home to rented space in town, which can accommodate up to 14 children. The space will cost $650 per month and the utilities will cost $125 per month. Additionally, insurance will now cost the Franks $5,000 per year. Per state regulations, each adult can supervise no more than three children. As their accountant, prepare a letter to the Franks advising them on their space options. Should they continue to operate the facility at home or should they rent space in town? How many children should they accept? How many employees will they need to hire? Show your detailed calculations for each scenario. | 3% |
Part B: Journal Article Critique | |
1. Identify the components of the management accounting system in each of the two companies, and discuss their relevance in enabling decisions to be made efficiently and effectively. Include examples in your answer. | 4% |
2. The article describes the innovation process in a firm as ‘a process of information creation’, and a firm needs to organise themselves ‘to transmit the new information’. Explain how management accounting contributes to this innovation process. Include in your discussion two (2) specific examples from each of the two companies mentioned in the journal article. | 4% |
3. Provide four (4) specific outcomes or lessons learned from the article’s research findings that will be useful for management accountants in Australian companies to learn from, and justify your answer [i.e. provide 2 outcomes from each company]. | 4% |
Overall Presentation | 3% |
TOTAL Weight | 30% |
Marking Rubric
Excellent | Very Good | Good | Satisfactory | Unsatisfactory | |
Part A: Case Study Analysis | |||||
1. Consider the different | (3 marks) | (2 mark) | (1.8 mark) | (1.5 mark) | (0 – 1 mark) |
types of costs discussed | 3 types of costs | 3 types of costs | 3 types of | 3 types of costs | Unable to |
in this unit. List any three | are clearly | are clearly | costs are | are identified | identify the 3 |
(3) types of costs and | identified and | identified with | clearly | with adequate | types of costs or |
provide one specific | excellent | very good | identified with | example of each | provide |
example of each cost | example of each | example of each | good example | cost from the | example of each |
from the case. (3 marks) | cost from the | cost from the | of each cost | case provided. | cost. |
case provided. | case provided. | from the case | |||
provided. | |||||
2. Based on the | (3 marks) | (2 mark) | (1.8 mark) | (1.5 mark) | (0 – 1 mark) |
information provided, | Demonstrate an | Demonstrate a | Demonstrate a | Demonstrate an | Unable to |
what information is | excellent | very good | good | adequate | explain the |
relevant to the decision to | explanation of | explanation of | explanation of | explanation of | relevant and |
purchase the appliances? | the relevant and | the relevant | the relevant | the relevant and | irrelevant |
What information is | irrelevant | and irrelevant | and irrelevant | irrelevant | information to |
irrelevant to the decision | information to | information to | information to | information to | the decision to |
to purchase the | the decision to | the decision to | the decision to | the decision to | purchase the |
appliances? Why? (3 | purchase the | purchase the | purchase the | purchase the | appliances. |
marks) | appliances. | appliances. | appliances. | appliances. | |
3. What could it cost the | (3 marks) | (2 mark) | (1.8 mark) | (1.5 mark) | (0 – 1 mark) |
couple to launder | Present an | Present a very | Present a good | Present | Unable to |
clothes? Show your | excellent | good | calculation of | adequate | present proper |
detailed calculations for | calculation of | calculation of | cost to launder | calculation of | calculation of |
each option. (3 marks) | cost to launder | cost to launder | clothes. | cost to launder | cost to launder |
clothes. | clothes. | clothes. | clothes. | ||
4. With the additional | (3 marks) | (2 mark) | (1.8 mark) | (1.5 mark) | (0 – 1 mark) |
employee, the Franks can | Present an | Present a very | Present a good | Present an | Unable to |
accept three additional | excellent | good | calculation on | adequate | present proper |
children. Should the | calculation on | calculation on | whether the | calculation on | calculation on |
Franks hire the additional | whether the | whether the | Franks should | whether the | whether the |
employee? Show your | Franks should | Franks should | hire the | Franks should | Franks should |
detailed calculations. (3 | hire the | hire the | additional | hire the | hire the |
marks) | additional | additional | employee. | additional | additional |
employee. | employee. | employee. | employee. | ||
5. As their accountant, | (3 marks) | (2 mark) | (1.8 mark) | (1.5 mark) | (0 – 1 mark) |
prepare a letter to the | Present an | Present a very | Present a good | Present a | Unable to |
Franks advising them on | excellent | good analysis of | analysis of | reasonable | present a |
their space options. | analysis of | space options. | space options. | analysis of | proper analysis |
Should they continue to | space options. | space options. | of space | ||
operate the facility at | options. | ||||
home or should they rent | |||||
space in town? How | |||||
many children should | |||||
they accept? How many | |||||
employees will they need | |||||
to hire? Show your | |||||
detailed calculations for | |||||
each scenario. (3 marks) |
Part B: Journal Article Critique | |||||
1. Identify the | (4 marks) | (3.5 mark) | (3 mark) | (2.5 mark) | (0 – 1.5 mark) |
components of the | Clear, concise, | A very good | A good | An adequate | Unable to |
management accounting | compelling | discussion of | discussion of | discussion of | present a |
system in each of the two | discussion of | components of | components of | components of | proper |
companies, and discuss | components of | management | management | management | discussion of |
their relevance in | management | accounting | accounting | accounting | components of |
enabling decisions to be | accounting | systems and | systems and | systems and | management |
made efficiently and | systems and | their relevance | their relevance | their relevance | accounting |
effectively. Include | their relevance | with very good | with good | with adequate | systems or the |
examples in your answer. | with excellent | examples. | examples. | examples. | discussion is not |
(4 marks) | examples. | supported by | |||
examples. | |||||
2. The article describes | (4 marks) | (3.5 mark) | (3 mark) | (2.5 mark) | (0 – 1.5 mark) |
the innovation process in | Clear, concise, | A very good | A good | Adequate | Unable to |
a firm as ‘a process of | compelling | discussion of | discussion of | discussion of | present a |
information creation’, | discussion of | ways that | ways that | ways that | proper |
and a firm needs to | ways that | management | management | management | discussion of |
organise themselves ‘to | management | accounting | accounting | accounting | ways that |
transmit the new | accounting | contributes to | contributes to | contributes to | management |
information’. Explain how | contributes to | innovation | innovation | innovation | accounting |
management accounting | innovation | process with | process with | process with | contributes to |
contributes to this | process with | very good | good | adequate | innovation |
innovation process. | excellent | examples. | examples. | examples. | process or the |
Include in your discussion | examples. | discussion is not | |||
two (2) specific examples | supported by | ||||
from each of the two | examples. | ||||
companies mentioned in | |||||
the journal article. | |||||
(4 marks) | |||||
3. Provide four (4) specific | (4 marks) | (3.5 mark) | (3 mark) | (2.5 mark) | (0 – 1.5 mark) |
outcomes or lessons | Clear, concise, | A very good | A good | An adequate | Unable to |
learned from the article’s | compelling | discussion of 2 | discussion of 2 | discussion of 2 | present a |
research findings that will | discussion of 2 | lessons learned | lessons | lessons learned | proper |
be useful for | lessons learned | from each | learned from | from each | discussion of |
management accountants | from each | company. | each company. | company. | lessons learned |
in Australian companies | company. | from each | |||
to learn from, and justify | company. | ||||
your answer [i.e. provide | |||||
2 outcomes from each | |||||
company]. (4 marks) |
Overall Presentation | (3 marks) | (2 mark) | (1.8 mark) | (1.5 mark) | (0 – 1 mark) |
marks | Include all | Include all | Include all | Include most | Lack key |
(3 marks) | elements and is | elements and is | elements and | elements and is | elements and is |
very well | well presented. | is generally | adequately | poorly | |
presented. | Writing flows | presented | presented. | presented. | |
Writing flows | clearly and | appropriately. | Writing | Writing does | |
clearly and | sections are | Writing mostly | sometimes does | not flow clearly | |
sections are | linked | flows well and | not flow clearly | leaving the | |
linked very | effectively. | sections are | leaving the | paper to seem | |
effectively. | Referencing is | linked. | paper to seem | disjointed. | |
Referencing is | of a high | Referencing is | disjointed in | Referencing is | |
exemplary. | standard. | in accordance | areas. | not in | |
English is used | English is used | with | Referencing is | accordance with | |
very effectively | effectively with | guidelines. | somewhat in | relevant | |
and error-free. | very few errors | English is used | accordance with | guidelines. Basic | |
present. | effectively | guidelines. Basic | English is used | ||
with few | English is used | with errors | |||
errors present. | with some | present. | |||
errors present. | |||||
Total Marks (30) | /30 |