Required to write a report and support it with relevant calculations to address

Learners need to have read carefully the instructions before attempting any of the questions. The assignment is divided into two Tasks covering learning outcome 1 to 4. To ensure effective and quality assessment, learners will be assessed using different mode of assessment including short essays and report writing and written reflective statements.

Learner check list:

Task 1&2:

Required to write a report and support it with relevant calculations to address [P1-P3] {1,500-2,000 words}

Task 3:

Required to write a report supported with relevant illustrations to address [P4 and P5] [1,500 – 2,000 words]

Scenario for the said purpose towards addressing Task 1 to Task3:

You work as a Management Accounting officer in a small and medium organization operating in either a Manufacturing, Retail, Hospitality or Construction sector with not more than fifty (50) employees and an annual net turnover not exceeding £500,000. Management accounting plays a key role in organizations today and therefore decision makers in the organization must understand how to create and use good management accounting information. In today’s business environment, business wants to track performance information that goes beyond just the cost-based information of historic general ledger systems provided by traditional financial accounting information. Good management accounting involves a responsibility to manage a wide variety of critical management accounting information using management accounting system and management accounting techniques such as cost-volume- profit analysis, marginal costing and absorption costing to produce relevant management report for informed decision making.

This was the summary of the speech delivered by a conference speaker about the role of management accounting and management accounting system in an organization. The General Manager of your organization sees management accounting function as very crucial in providing management information well informed decision making within the organization. Knowing that you are studying management accounting at the HND level, the organization sponsored you to attend this conference. After this conference the General management has asked you (Management Accounting Officer) to write a report to him covering management accounting and management accounting system together with different costing techniques and reporting to enable the organization implement them. You should also support your report towards addressing P3 with the preparation of income statement using costing techniques such as marginal and absorption from the data provided

This should be presented as a report to the General Manager (GM) and should include the following

Task 1

Using the above scenario and acting as a Management Accounting Officer, you are required to present a report in a word format for P1, P2 to the General Manager choosing one organisation you are familiar with in the sectors stated in the scenario and following the instructions as specified. You are required to carry out an extensive research by using various supportive materials such as the magazine, text books, websites, journals, newspapers, lecture materials, and other relevant resources.

Note: To address the merit and distinction for LO1 and LO2 please refer to the assessment guidelines as specified below.

LO1 Demonstrate an understanding of management accounting systems

P1 Explain management accounting and give the essential requirements of different types of management accounting systems to the chosen scenario giving examples. (P1)

P2 Explain different methods used for management accounting reporting that can also be used for the chosen scenario (P2)

Task 2 Please refer to the information as specified below and do as instructed:

LO2 Apply a range of management accounting techniques.

P3 Calculate costs using appropriate techniques of cost analysis to prepare an income statement of marginal and absorption costing using the data provided below and explain the differences between them. To address M2 and D2, Please follow the instructions as specified below using the above scenario chosen for the purpose.

M2: To get a merit, continue your answer by further using the same scenario as specified above and accurately apply a range of management accounting techniques and produce appropriate financial reporting documents for the chosen scenario.

D2: To get a Distinction, Produce financial reports that accurately apply and interpret data for a range of business activities for

the chosen scenario.

P3 Your organisation produces/sells a single product. Details on the product are given below.

Budgeted sales for the period were 450 units but the actual sales were 600 units. There was no opening stock and actual production for the month was 700 units

Calculate the net profit using absorption costing. Calculate the net profit using marginal costing Explain the difference between the two management accounting techniques.

M2: To get a merit, continue your answer by further using the same scenario as specified above and accurately apply a range of management accounting techniques and produce appropriate financial reporting documents for the chosen scenario.