ACC5MCR - Management Accounting

Individual Assignment (25%) 

GENERAL INFORMATION

· DUE DATE: Sunday 14^th August by 23:59pm.

· Please note that assignments submitted the tenth (10th) working day after the due date are not accepted for marking as per university policy.

· Please confirm your chosen product/service via a post in ‘Product/Service’ forum located in the ‘Assessments’ section of the LMS by the end of week 3.

· If you are repeating this subject, you need to select a different product/service from your previous semester and please do not self-plagiarise.

SUBMISSION: Submitted via LMS Turnitin link in ‘Assessments’ section.

WORD LIMIT: Approximately 1,000 words (excluding figures, tables, charts, visuals and references)

RELEVANT SUBJECT LEARNING INTENDED OUTCOMES

1. Apply key concepts in relation to organisations and management accounting to business scenarios.

2. Critically apply management accounting techniques for business decision and control.

3. Interpret information relevant to management judgement and decisions.

4. Critically evaluate the performance of an organisation, its products, people and business segments.

5. Communicate professionally to a range of stakeholders while addressing the interaction of management accounting with organisational and social strategies.

GRADUATE CAPABILITIES ASSESSED

· DISCIPLINE KNOWLEDGE AND SKILLS

· INQUIRY AND ANALYSIS - Critical Thinking and Problem Solving

RATIONALE

In this subject, you will develop an understanding of the elements of management accounting, which provides organisations with relevant managerial accounting information to assist with their planning, controlling and decision-making. This assessment task gives you the opportunity to demonstrate and apply your understanding of product/service standard costing and pricing in a practical and authentic manner. You will undertake the process of identifying, determining, classifying and allocating standard costs to a product or service of your choice.

TASK

You are required to select a product or a service of your choice. It might be an existing product/service with your take on it (i.e., you determine its design, colour and name) or a new product that does not exist in the market. Please note that it does not need to be a complicated product/service, you can select a simple product/service. 

INSTRUCTIONS/REQUIREMENTS

1. Provide detailed descriptions about your product/service and a visual/picture of it (this can be your own drawing or an image from the internet with your product brand/logo assigned to the image). Critically explain why you selected your product/service (i.e. will there be a demand for it? How is it similar or different to existing products/services in the market). Critically explain the social, environmental and/or financial impacts of your product/service?

2. Undertake thorough market research (i.e. search the internet) to calculate the standard costs and selling price of your product/service.

a. Clearly list and determine the quantity and types of each direct materials, direct labour and manufacturing overheads that will be required to produce one unit of your product and calculate your products per unit standard cost.

b. Explain the approach/method and activity level you used to allocate and calculate the overhead cost per unit and clearly differentiate/list fixed and variable manufacturing overheads.

c. Provide detailed explanations of the process of cost estimation, any assumptions used, and where you obtained the cost information from (data sources), and critically evaluate why you think the data is reliable.

d. Critically explain how you determined the selling price:

i. explain and justify the pricing method, cost base and mark-up you selected and used;

ii. explain how your products’/services’ price compares to main competitors prices.

e. Your working and calculations for requirement 2 need to be completed in an Excel file, in the same Excel file but separate tab you need to prepare the master budget for requirement 3 below. Please ensure to use cell referencing to provide an audit trail of your data and calculations within and across the different tabs of your Excel file. 

3. Prepare a master budget for the first quarter the product/service is offered to the market. The master budget must include all components relevant to your chosen business.

a. Sales forecast/estimation needs to be explained and determined using market research (i.e., why and how you arrived at the sales estimation).

b. All budgets are to be prepared using Excel and presented in a professional format.

c. All data sources need to be properly referenced.

SUBMISSION REQUIREMENTS

· You need to submit two files for the assignment. One is the completed PDF file containing your explanantions for all requirements. The second file is the Excel file containing your detailed calculations for requirements 2 and 3.

· The first page of your PDF report should be a cover page with the subject code, your name and student ID and the name of your product. The second page should be a table of contents.

· The body of the PDF report will include the requirements 1-3 above and each requirement needs to be clearly numbered.

· The last page of the PDF report should include your reference list in alphabetical order.

· All data sources need to be properly referenced in-text and in the reference list. You need to include in-text references for resources you used and referred to as part of your market research to determine your products’ costs, price etc in both your PDF and Excel file.

· Please use the APA 7^th referencing style (please refer to the library resources if you need guidance with this style).

· The PDF report and Excel file needs to be page numbered and presented in a professional and well-formatted manner.

· Please ensure to provide full and correct statement headings with the month and year you have selected.