Unit 5 Management Accounting

ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT
Pearson BTEC HND in Business (RQF)
Unit 5 Management Accounting
Assignment Brief
Session: September 2020

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ICON College of Technology and Management
Pearson BTEC HND in Business (RQF)
Unit 5: Management Accounting (L4)
Session: September 2020
Coursework
Recommended Word limit: 3,500–4,500
This Unit will be assessed by assignment.
You are strongly advised to read “Preparation guidelines of the Coursework Document”
before answering your assignment.
ASSIGNMENT
Assignment Context and Business Scenario
Select a company of your choice operating in the manufacturing industry and assume that the
company is undergoing major restructuring. One of this restructuring is creating the position of a
Junior management Accountant to work under the direct supervision of the Finance Director.
Assume that you have been appointed by this company as the Junior management Accountant.
However, the Board of Directors do not understand the role of a Management Accountant within the
company.
Upon your appointment, you realise that the existing management accounting systems do not meet
the present day global competitive market and cannot help the company compete with its
competitors.
You are required to write a report to the Board of Directors in which:
1. You explain the role of management accounting for an organization such as theirs, the
different management accounting systems used for reporting, show why management
accounting systems are required for their company and how these management
accounting systems can help the company compete with competitors,
2. Use management accounting techniques to show how management accounting can help
improve on their costing techniques,
3. Show how the company can use different budgetary methods as a major planning and
control tool,
4. Show how management accounting can provide management with information to help
resolve any financial issues faced by the company.
In your report, using your own data, provide examples of income statements prepared using
both absorption costing and marginal costing methods. Your data may be attached as
appendices and if attached they must be appropriately referenced within the body of your report.
In the case of any major calculations, these calculations MUST be attached as appendices and
only a summary of key figures should be used within your report.
Your report must be appropriately structured. The following is suggested as a guidance on how a
good report should be:
• An introductory section indicating what your report will cover and a brief background
discussion of your chosen company.
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• The main section (body) of the report, which may be subdivided on the basis of the four
themes listed above corresponding to the tasks on the next page. The main body is for
analysis of the main issues and supported by referenced academic literature
• A concluding section that briefly summarises your work, your findings and your
recommendations to the Board of Directors.
What you must do
The following issues are required to be carried out:
LO1: Demonstrate an understanding of management accounting systems
Explain the role of management accounting, the different management accounting systems and their
requirements. You should also explain different methods used in management accounting
reporting.
Having explained management accounting and different methods used in management accounting
reporting, you are required to evaluate the benefits of management accounting systems and their
application in your chosen organisation.
Demonstrate your ability to apply the management accounting systems, by critically evaluating
how management accounting systems and management reporting is integrated in an organization,
using your selected organization as an example.
LO2: Apply a range of management accounting techniques.
Using your own data from your selected organisation, prepare income statements using both
absorption and marginal costing. In addition, you should accurately apply a range of management
accounting techniques to produce different management accounting reports relevant for an
organisation. You must attach all financial data you use as an Appendix. This data must also
be presented to your tutor for approval. You are also required to use management accounting
techniques, to produce management accounting reports that apply in a range of different business
activities.
LO3: Explain the use of planning tools used in management accounting
The budget is an important control tool. Explain the advantages and disadvantages of different
types of planning tools used in budgetary control (Please note the calculation of these tools is not
necessary). You are also required to analyse the use of different planning tools and their
application for preparing and forecasting budgets.
LO4: Compare ways in which organisations could use management accounting to respond to
financial problems.
Using your chosen organisation and any other organisation, compare how organisations are using
the following management accounting methods to respond to financial problems:
Benchmarking
Key performance indicators (financial and non-financial KPIs)
Balance score card
Activity based costing (ABC)
Financial governance
You should analyse how these management accounting methods can help your organisation to
respond to financial problems that will have sustainable success.
Using examples from your chosen organisation, critically evaluate how the different budgets used
for planning and control can be used in resolving financial problems that can to lead an organisation
achieving a competitive position in a sustainable way.
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Relevant Information
Guide to student
1. Preparation guidelines of the Coursework Document
a. Document margins must not be more than 2.54 cm (1 inch) or less than 1.9cm (3/4 inch).
b. The assignment should be in a formal business style using single spacing and font size 12.
c. Standard and commonly used type face such as Arial should be used.
d. All figures, graphs and tables must be numbered.
e. Material taken from external sources must be properly referenced using the Harvard
referencing system.
f. You should provide references using the Harvard referencing system.
g. Do not use Wikipedia, business dictionary, accounting coach, accounting dictionary,
Investopedia, etc as references. Only referenced journals and books should be used
2. Plagiarism and Collusion
Any act of plagiarism or collusion will be seriously dealt with according to the College
regulations. In this context the definition and scope of plagiarism and collusion are presented
below:
Plagiarism is presenting somebody else’s work as your own. It includes copying information
directly from the Web or books without referencing the material; submitting joint coursework
as an individual effort.
Collusion is copying another student’s coursework; stealing coursework from another
student and submitting it as your own work.
Suspected plagiarism or collusion will be investigated and if found to have occurred will be
dealt with according to the College procedure. (For details on Plagiarism & Collusion
please see the Student Handbook)
3. Submission
a. Initial submission of coursework to the tutors is compulsory in each unit of the course.
b. Student must check their assignments on ICON VLE with plagiarism software Turnitin to
make sure the similarity index for their assignment stays within the College approved level. A
student can check the similarity index of their assignment three times in the Draft
Assignment submission point located in the home page of the ICON VLE.
c. All Final coursework must be submitted to the Final submission point into the unit (not to
the Tutor). A student would be allowed to submit only once and that is the final
submission.
d. Any computer files generated such as program code (software), graphic files that form part
of the coursework must be submitted as an attachment to the assignment with all
documentation.
e. Any portfolio for a unit must be submitted as a hardcopy to the Examination Office.
f. The student must attach a tutor’s comment in between the cover page and the answer in the
case of Resubmission.
4. Good practice
Make backup of your work in different media (hard disk, memory stick, etc.) to avoid distress
due to loss or damage of your original copy.
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5. Extension and Late Submission and Resubmission
a. If you need an extension for a valid reason, you must request one using an Exceptional
Extenuating Circumstances (EEC) form available from the Examination Office and ICON
VLE. Please note that the tutors do not have the authority to extend the coursework
deadlines and therefore do not ask them to award a coursework extension. The completed
form must be accompanied by evidence such as a medical certificate in the event of you
being sick.
b. Late submission will be accepted and marked according to the College procedure. It is noted
that late submission may not be graded for Merit and Distinction.
c. All Late coursework must be submitted to the Late submission point into the unit (not to
the Tutor). A student will be allowed to submit only once and that is the final submission.
d. Only one opportunity will be given for reassessment (resubmission) will be permitted and the
assessment will be capped at Pass for the unit. In addition, no resubmission will be allowed
in any component of the assessment for which a Pass grade or higher has been achieved.
e. Repeat Units – A student who has failed to achieve a Pass in both Final/Late submission
and in the Resubmission must retake the unit with full attendance and payment of the unit
fee. The overall unit grade for a successfully completed repeat unit is capped at Pass for
that unit. Units can only be repeated once.
6. Submission deadlines
Submission deadlines Online to the ICON College VLE
Final Submission date: 04-09 January 2021
Late Submission date: 11-16 January 2021
Glossary:
Analyse: Break an issue or topic into smaller parts by looking in depth at each part. Support each
part with arguments and evidence for and against (Pros and cons). Break something down into its
components; examine factors methodically and in detail to recognise patterns by applying concepts
and making connections to predict consequences.
Apply: Use a particular method/technique to solve a problem
Critically Evaluate/Analyse: When you critically evaluate you look at the arguments for and
against an issue. You look at the strengths and weaknesses of the arguments.
Conduct: To do or carry out, to organise and perform a particular activity
Determine: Find a solution by argument, making clear your reasoning (e.g., determine the type of
event that has occurred, based on the data provided”) (application) or “Determine the most
appropriate course of action for the company, within the given constraints” (higher order skills).
Demonstrate: Show that you can do a particular activity or skill. Provide several relevant examples
or related evidence which clearly support the arguments you are making.
Explain: When you explain you must say why it is important or not important.
Clarify a topic by giving a detailed account as to how and why it occurs, or what is meant by the use
of this term in a particular context.
Identify: When you identify you look at the most important points. Establish or indicate the origin,
nature or definitive character of something