Critically evaluate whether standard costing applies in both manufacturing and service businesses and how it may be affected by modern initiatives of continuous performance improvement and cost reduction

Before 10am on:

15/07/2022

20 working days after deadline (L4, 5 and 7)
15 working days after deadline (L6)
10 working days after deadline (block delivery)

29/07/2022 

Unit title & code

Management Accounting and Financial Planning   AAF043-6

Assignment number and title

Assignment two

Assignment type

Business Report

Weighting of assignment

60%

Size or length of assessment

3000 words

Unit learning outcomes

Demonstrate the following knowledge and understanding

1.Demonstrate a deep and systematic understanding of management accounting and financial planning concepts, techniques, methods and approaches to judge the effectiveness of management decisions.

2.Demonstrate the ability to review, criticize and evaluate concepts, techniques, and developments of management accounting and financial planning, their links to other management disciplines and their contribution to business success.

What am I required to do in this assignment?

‘’The costing literature has failed to conclusively explain why some companies implement sophisticated costing systems (CSs) while others do not. Although some contingency variables were proposed, inconclusive results were reported which raised concerns about their underlying theory. Focusing on firm size, as the most examined and confusing variable in this contingency literature, we develop and test more complex relations than in prior studies to provide more insights into its role”. (Hadid & Hamdan, 2021

Your line manager has also asked you to prepare a report   to be presented to the company board of directors that discusses the  following topics:

1. Critically evaluate whether standard costing applies in both manufacturing and service businesses and how it may be affected by modern initiatives of continuous performance improvement and cost reduction (20%)
2. Critically discuss the contribution approach to decision making giving brief examples and drawing attention to any limitations (20%)
3. Critically discuss the role of costing decisions in supporting financial planning. You can support your argument with some cases, examples and best practices (30)
4. Critically discuss the behavioral factors which should be borne in mind and the difficulties of applying them in the process of budgeting and budgetary control (10%)
5. Critically discuss how (i) the real rate of return and (ii) the money rate of return, and would be used when calculating the net present value of a project’s cash flows (10%)

You must support all your arguments and analysis with sound academic evidence and cite the academic materials properly using Harvard reference system. (10%) 

What do I need to do to pass? (Threshold Expectations from UIF)

In order to pass Assessment 1 you will need to:

Apply appropriate management accounting and financial planning techniques to investment opportunities or performance measures in a given situation and with reference to extant literature evaluate the limitations of these techniques and suggest how alternatives might improve their effectiveness. 

How do I produce high quality work that merits a good grade?

•Develop a consistent and logical argument that shows deep analysis and clarity of thought. It could be based on an excellent grasp of Management Accounting and Financial Planning e.g. Cost Decisions, Management Control Systems, Capital Investment Decisions. 

•Develop and present a good synthesis of relevant theoretical analyses and examples

•Demonstrate a comprehensive analysis of recent, relevant literature

•Think carefully about and reflect on the topic with some practical examples

•Ensure that all arguments presented are cogent and coherent

•Demonstrate a strong awareness of academic theories and apply that knowledge fully

•Present your answers to a high standard of academic writing and referencing

How does this assignment relate to what we are doing in scheduled sessions?

The sessions are about thinking strategically and making strategic judgments about both the changing world around us and the capabilities of all sorts of management accounting decisions and management control system (see study material on BREO).  

 Your assignment will be marked according to the threshold expectations and the criteria on the following page.

You can use them to evaluate your own work and consider your grade before you submit.

Whether standard costing applies in both manufacturing and service businesses (20%)

 Demonstrates basic awareness of whether standard costing applies in both manufacturing and service businesses

Demonstrates good awareness whether standard costing applies in both manufacturing and service businesses

Demonstrates sound awareness of whether standard costing applies in both manufacturing and service businesses

Demonstrates excellent awareness of whether standard costing applies in both manufacturing and service businesses

The contribution approach to decision making giving brief examples and (20%)

Demonstrates basic awareness discuss the contribution approach to decision making giving brief examples and drawing attention to any limitations

Demonstrates good awareness of discuss the contribution approach to decision making giving brief examples and drawing attention to any limitations

Demonstrates sound awareness discuss the contribution approach to decision making giving brief examples and drawing attention to any limitations

Demonstrates excellent awareness of discuss the contribution approach to decision making giving brief examples and drawing attention to any limitations

The role of costing decisions in supporting financial planning (30%)

Demonstrates basic awareness of the role of costing decisions in supporting financial planning

Demonstrates good awareness of the role of costing decisions in supporting financial planning

Demonstrates sound awareness of the role of costing decisions in supporting financial planning

Demonstrates basic awareness of the role of costing decisions in supporting financial planning

 Discuss the behavioral factors which should be borne in mind and the difficulties (10%)

Demonstrates basic awareness of the behavioral factors which should be borne in mind and the difficulties of applying them in the process of budgeting and budgetary control

Demonstrates good awareness of  the behavioral factors which should be borne in mind and the difficulties of applying them in the process of budgeting and budgetary control

Demonstrates sound awareness of the behavioral factors which should be borne in mind and the difficulties of applying them in the process of budgeting and budgetary control

Demonstrates basic awareness of the behavioral factors which should be borne in mind and the difficulties of applying them in the process of budgeting and budgetary control

how (i) the real rate of return and (ii) the money rate of return, and would be used in NPV (10%)

Demonstrates basic awareness of discuss how (i) the real rate of return and (ii) the money rate of return, and would be used when calculating the net present value of a project’s cash flows

Demonstrates basic awareness of discuss how (i) the real rate of return and (ii) the money rate of return, and would be used when calculating the net present value of a project’s cash flows

Demonstrates basic awareness of discuss how (i) the real rate of return and (ii) the money rate of return, and would be used when calculating the net present value of a project’s cash flows

Demonstrates basic awareness of discuss how (i) the real rate of return and (ii) the money rate of return, and would be used when calculating the net present value of a project’s cash flows

Referencing (10%)

Basic referencing  t the work using the Harvard Referencing System  

Good referencing   throughout the work using the Harvard Referencing System

Sound referencing   throughout the work using the Harvard Referencing System  

Sound referencing   throughout the work using the Harvard Referencing System