Assignment title - Management Accounting report for Imda Tech (UK) Limited
You have been working as an Apprentice/ Trainee Management Accountant at Imda Tech (UK) Limited, who is producing special charger for mobile telephone and other carry-on gadgets for retail outlets in the UK. During the last senior management meeting, some department managers have complained about the lack of financial information to improve their decision making.
Your Line Manager Mr Imdal who is the Director of Finance in Imda Tech (UK) Limited has asked you to produce a written report as part of your learning which will also be circulated to all the department managers.
At the planned meeting, you have been asked to:
Task 1 -
a) Prepare a well-researched written report on the functions of Management Accounting. Your presentation should cover among other things
i. Definition of Management Accounting and to distinguish Management Accounting from Financial Accounting.
ii. The importance of management accounting information as a decision making tool for department managers.
b) Explain the different types of Management Accounting Systems and how it can be used by other departments to improve their reports. Your explanations should cover among other things: An explanation of
i. Cost accounting systems (actual, normal and standard costing)
ii. Inventory management systems
iii. Job costing systems
iv. Price optimising systems
Task 2 -
Imda Tech (UK) Limited commenced business on 1 September 2010 producing special charger for mobile telephone and other carry-on gadgets, the cost card of which is as follows:
|
|
£
|
|
Direct labour
|
5.00
|
|
Direct Material
|
8.00
|
|
Variable production overhead
|
2.00
|
|
Fixed Production Overhead
|
5.00
|
|
Standard Production cost
|
£ 20.00
|
The fixed production overhead figure has been calculated on the basis of a budgeted normal output of 36,000 units per annum. The fixed production overhead incurred in September was £15,000 each month.
Selling, distribution and administration expenses are:
Fixed - £10,000 per month
Variable - 15% of the sales value
The selling price per unit is £35 and the number of units produced and sold were:
September (Units)
Variable 2,000
Sales 1,500
You are required to prepare income statements for the month of September using;
I. absorption costing and
II. marginal costing methods
Task 3 -
In the senior management meeting it was discussed and agreed that department managers should have more involvement and take responsibility for their department budgets. Despite this news was greeted with a welcome response yet managers have requested for more information and training on budget preparation.
Your line manager has requested you to provide a written report on planning tools which should explain:
a) Different types of budgets and their advantages and disadvantages.
b) The process of preparing budgets.
c) Pricing strategies.
Task 4 -
Imda Tech (UK) Limited has recently published their accounts for the last financial year showed a loss of £1.5 million. The company is evaluating ways in which the organization could use management accounting to respond to financial problems. The auditors in their recent report has suggested the use of a Balance Score Card approach.
Required:
(a) Explain what a Balance Score Card approach is and describe how the implementation of a balanced scorecard can deliver a range of performance measures (financial and nonfinancial).
In your explanation you are to examine;
I. How it can be used to identify and respond to financial problems
II. How it can be used to improve financial governance and development of effective strategies.
Attachment:- Assignment Files.rar