ETC International College
International Year 1 Business Student Name/ID Number:
Unit Number and Title:
Unit 5: Management Accounting Academic Year:
2018-19 Unit Assessor:
Vidhya Babu Kanadasamy Assignment Title:
Management Accounting Principles Issue Date:
1/10/2018 Submission Date:
5/11/2018 Internal Verifier Name:
Praneeta Phadke Date:
Submission Format:
The submission is in the form of a report. This should be written in a concise, formal business style using 1.5 spacing and font size 12. You are required to make use of headings, paragraphs and subsections as appropriate. All work must be supported with research and referenced using the Harvard referencing system. Please also provide a bibliography using the Harvard referencing system. The recommended word limit is 2000+ words, although you will not be penalised for exceeding the total word limit.
Unit Learning Outcomes:
1 Demonstrate an understanding of management accounting systems.
2 Apply a range of management accounting techniques.
3 Explain the use of planning tools used in management accounting.
4 Compare ways in which organizations could use management accounting to respond to financial problems
ETC International College
Assignment Brief and Guidance: Learning Outcome 1: Demonstrate an understanding of management accounting systems.
Task 1 and Scenario:(P1 P2 M1 D1)
You are asked to give training to the group of college students who are doing their project work in your company and your are responsible to explain them the folowing:
 What is management accounting?(P1)
 What is a management accounting system?(P1)
 Why is it important to integrate these within an organisation? (P1)
 Explore the origin, role and principles of management accounting. (P1)
 Different types of management accounting systems such as cost-accounting systems, inventory management systems, job-costing systems and price-optimising systems.(P2)
 You need to evaluate the benefits of Management accounting systems and their application within an organisation context.(M1)
 Critically evalulte how management accouting systems and management accounting reporting is integrated within organisational processes.(D1)
Learning Outcome 2: Apply a range of management accounting techniques
Task 2:(P3 M2 D2)
 Calculate costs using appropriate techniques of cost analysis to prepare an income statement using marginal and absorption costs.(P3)
 Accurately apply a range of management accounting techniques and produce appropriate financial reporting documents.(M2)
 Produce financial reports that accurately apply and interpret data for a range of business activities.(D2)
Learning Outcome 3: Explain the use of planning tools used in management accounting Task 3 and Senario:(P4 M3)  You to are asked to explain the advantages and disadvantages of different types of planning tools used for budgetary control to the new worker joining in the your team.(P4)
ETC International College
 (M3)ABT Ltd is a manufacturing company which produces a fixed budget for planning purposes. Set out below is the fixed monthly budget of production costs, together with the actual results observed for the month of July Year 7. Budget Actual Units Produced 5,000 5,500 Cost: Direct Materials Direct Labour Variable production overhead Fixed production overhead Depreciation 20,000 60,000 14,000 10,000 4,000 22,764 75,900 14,950 9,000 4,000 In preparing the fixed budget, the following standards were adopted: Direct material 10 kg of materials per unit produced. Direct labour 2 hours per unit produced. Variable production overhead A cost rate per direct labour hour was calculated. Fixed production overhead A cost rate per unit was calculated. Depreciation Straight-line method is used for all assets. The following additional information is available concerning the actual output: (a) the actual usage of materials in July was 54,200 kg; and (b) the nationally agreed wage rate increased to $6.60 per hour at the start of July. Required (a) Prepare a flexible budget in respect of ABT Ltd for the month of July Year 7. (b) Analyse and comment on cost variances.
ETC International College
Learning Outcome 4: Compare ways in which organisations could use management accounting to respond to financial problems Task 4:(P5) VaGo Taxis Ltd operates a taxi service in a large local city. All of the taxis are owned by the business and all the drivers are employees rather than owner drivers. The managers wish to benchmark the operating efficiency of the business against another taxi service. A suitable taxi service has been identified and has agreed to the benchmarking exercise. It is highly successful and operates a similar business model in a nearby city of similar size. You are required to produce a checklist of ten measures of operating efficiency that could be used as the basis for the benchmarking exercise. (Hint: When identifying measures, think about the key factors of time, quality, income and costs. M4 D3:  Analyse how, in responding to financial problems, management accounting can lead organisations to sustainable success.(M4)  Evaluate how planning tools for accounting respond appropriately to solving financial problems to lead organisations to sustainable success (D3).
ETC International College
Learning Outcomes and Assessment Criteria: Pass Merit Distinction LO1 Demonstrate an understanding of management accounting systems.
P1 Explain management accounting and give the essential requirements of different types of management accounting systems.
P2 Explain different methods used for management accounting reporting.
M1 Evaluate the benefits of management accounting systems and their application within an organisational context.
D1 Critically evaluate how management accounting systems and management accounting reporting is integrated within organisational processes.
LO2 Apply a range of management accounting techniques.
P3 Calculate costs using appropriate techniques of cost analysis to prepare an income statement using marginal and absorption costs.
M2 Accurately apply a range of management accounting techniques and produce appropriate financial reporting documents.
D2 Produce financial reports that accurately apply and interpret data for a range of business activities. LO3 Explain the use of planning tools used in management accounting
P4 Explain the advantages and disadvantages of different types of planning tools used for budgetary control.
M3 Analyse the use of different planning tools and their application for preparing and forecasting budgets.
LO3 & LO4
D3 Evaluate how planning tools for accounting respond appropriately to solving financial problems to lead organisations to sustainable success.
LO4 Compare ways in which organisations could use management accounting to respond to financial problems.
P5 Compare how organisations are adapting management accounting systems to respond to financial problems.
M4 Analyse how, in responding to financial problems, management accounting can lead organisations to sustainable success.