Managerial Accounting for Decision Making Assignment | College Homework Help
there are three parts ABC, for part A and B, question A1 and B2 are calculation questions that need to be done, for part C, choose three of them, and the maximum words limit for part c is 1500. Additional material will be added.
Coursework Brief for Alternative Assessment
Summer 2020
Module name: Managerial Accounting for Decision Making
Module code: MSIN0059
Module leader name: Elliot Guner
Academic year: 2019-20
Term 1, 2 or 3: Term 3
Nature of assessment: Individual
Content of this coursework Brief
Section Content
A Core information
B Coursework brief and requirements
C Module learning outcomes covered in
this assessment
D Assessment of this coursework
E Groupwork instructions (if applicable)
F Additional information from module
leader (if applicable)
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Section A: Core information
This assessment is
marked out of
100 marks
% weighting of this
assessment within
total module mark
70%
Advisable time to
spend on this
assessment
This is an alternative assessment to an exam and our
eecai ae he ae a he f a ica i
e iece f cework.
Accordingly:
for a module up to and including 70% weighting,
our advice is that it would be reasonable to spend
up to three (3) working days on the assessment;
Word count/page
length – maximum This assignment comprises three (3) parts, A, B and C.
Part A and B are quantitative. It is anticipated that you will
use Excel for this. If so copy your Excel work and paste it
into the document containing your response to Part C.
Y c ad ae ce hd be ge
than 4 pages (based on A4 size).
Part C is qualitative. You should not exceed one
thousand five hundred (1,500) words you may use
fewer words if you so choose to.
Footnotes,
appendices, tables,
figures, diagrams,
charts included
in/excluded from
word count
Included in numbers of pages/word count
Do note that as this alternative assessment is an
alternative to an exam, it is not expected that
appendices will be included.
Bibliographies,
reference lists
included
in/excluded from
word count
Excluded from page length/word count
Do note that as this alternative assessment is an
alternative to an exam, it is not expected that
bibliographies/reference lists will be included.
Penalty for
exceeding word
count/page length
Yes 10 percentage points deduction, capped at 40%
for Levels 4,5, 6, and 50% for Level 7. Refer to
Academic Manual Section 3: Module Assessment – 3.13
Word Counts.
Academic
misconduct
(including
plagiarism)
Academic Misconduct is defined as any action or
attempted action that may result in a student obtaining
an unfair academic advantage. Refer to Academic
Manual Section 9: Student Academic Misconduct
Procedure – 9.2 Definitions.
Submission date 21st May 2020
Submission time 12:00 midday (UK time)
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Penalty for late
submission
Yes. Refer to Academic Manual Section 3: Module
Assessment – 3.12 Coursework Deadlines & Late
Submissions.
If you encounter problems, issues, challenges which fall
under the scope of Extenuating Circumstances, please
apply to your Home Department.
Submitting your
assignment
The assignment MUST be submitted to the module
submission link caed ihi hi de Mde
Sbii ab b he ecified deadie.
Submissions are through Turnitin.
Submissions should be in pdf format and as one
document.
Anonymity of
identity
The nature of this assessment is such that anonymity is
required this assessment is anonymous.
Return and status
of marked
assessments
As this is an alternative assessment to an exam,
feedback will be primarily linked to defined
rubrics/templates.
Generic cohort feedback will also be supplied.
Assessments are subject to double
marking/scrutiny, and internal quality inspection
by a nominated School of Management internal
assessor. All results when first published are
provisional until confirmed by the relevant
External Examiner and the Examination Board.
No appeals regarding your published mark are
available until after confirmation by that
Examination Board.
Academic Support with this Assessment
Questions posted to the Moodle forum for this module before 5pm (UK time) on May
4th 2020 will be answered on the forum.
Uploading your submission
Unless specifically instructed otherwise in the assessment document, please upload
your work as a single file via the submission link on Moodle.
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o Wherever possible you should type your answers and follow guidelines
in the assessment document on the preferred format (font, line spacing
and so on).
o If you do have to include any elements that are not typed/computer generated
(e.g. figures, diagrams, equations etc.), or you are unable to type your
answers for any reason, please follow the advice for submitting handwritten
answers for any submission that requires scanning documents (the webpage
refers to 24-hour timed exams but is applicable to all online submissions).
o If for any reason you are not able to use the app recommended by ISD at the
link above, you can consult the following resources for advice about preparing
your submission:
Submitting handwritten assignments to Moodle using mobile or tablet
Devices – Device Camera
Submitting handwritten assignments to Moodle using mobile or tablet
devices – MS One Drive App
Please DOUBLE CHECK that the file you are uploading is the correct one and is
complete (with all pages visible).
Technical Problems
If you encounter difficulties downloading or submitting your assessment via Moodle, then
please immediately notify (by email) your department (Teaching and Learning Administrator
and Module Leader), explaining the problem and including a copy of the work you are trying
to submit. ONLY use this approach if you can show that you have tried to upload to Moodle
and encountered technical difficulties.
Advice and other support
24-hour timed exam FAQs (many of which will be relevant to coursework as well)
Advice about Extenuating Circumstances
UCL Engineering EC App
Student Support and Wellbeing
sotntstooto
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Section B: Coursework Brief and Requirements
Context
This assignment comprises three (3) parts: Part A, Part B and Part C.
Part A carries 30 marks, Part B carries 25 marks, and Part C carries 45 marks.
Part A and Part B are quantitative and you are advised to use Excel.
Part C is qualitative.
In Part A: You must answer question A1. It is a compulsory question.
In Part B: You must answer ONE question. You may choose from EITHER B1 or B2.
In Part C: You must answer a total of THREE questions. You may choose ANY three
questions from C1, C2, C3 and C4.
Any additional questions attempted above the requirements set immediately above will
NOT be marked.
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Brief
Part A [30 marks]
QUESTION A1 [30 marks] (COMPULSORY)
You are the Finance Director of a small limited liability business, Alternative Assessment
Assistance Limited. The company is considering investing in a new project. The project
involves the provision of an on-line service to people interested in discovering more about
the essentials of accounting and finance, especially management accounting.
You have investigated a range of matters and compiled the following:
1. The project would have a likely operational life of three (3) years.
2. The project would require up-front initial investment of £21,000 in specialist IT
equipment. The company already has £10,500 in its bank account, but not earning any
interest. It would also need to borrow the rest of the funding from the bank at an annual
interest rate of 10%. For break-even analysis purposes the company excludes bank interest
from fixed costs within calculations.
3. The project would require the use of specialist software. This would require a fixed
annual payment of £10,000 plus £25 for each customer using the on-line service.
4. All sales will be for cash, paid for on-line by customers using debit or credit cards.
The ca ba chage a aa fee f 2,500 ce a debit and credit card
transactions. Each customer would pay £500 in each of the three years. In the first year,
100 customers would use the service, with sales volume increasing by each year by 10%
he ei ea ae e.
5. The project will not be liable for corporation tax on its profits as it is eligible for a
special tax emption incentive scheme for five (5) years.
6. Additional staff salaries would be £10,000 in year 1, £12,500 in year 2 and £20,000
in year 3. These are in addition to existing annual salaries of £5,000 for staff already
employed who would be associated with the project.
7. Before operations commence, the company will pay £22,500 for a three-year (3
years) lease of office space.
8. Computer consumables would cost £2.50 per customer in year 1, but will increase to
£3 in year 2 and fall to £2 in year 3.
9. The specialist IT equipment purchased for the project would be depreciated (straight
line) over three years. In year 4 it would be scrapped with zero residual value.
10. Legal and insurance costs would be £2,500 each year.
11. Advertising costs would be £2,500 each year.
12. Shaehde eecai f e i 12%.
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Required
Using the details shown above:
a) For each of the three years, calculate the Break-Even Point and Margin of Safety in
terms of customer numbers and sales revenues. Round up as appropriate: Round up to the
nearest whole £ figure; Round up to the nearest customer. (8 marks)
b) Undertake an investment appraisal for the proposed project. For the purposes of the
appraisal assume the investment in the new equipment, and the purchase of the three-year
lease, are made before the first year of operations. Calculate the non-discounted Payback
period, and the Net Present Value. For Payback show your answer to two (2) decimal
places. For Net Present Value use a discount factor of 11% and show your answer to the
nearest whole £ figure.
(10 marks)
c) Assuming the company has an IRR hurdle rate of 20%, state whether or not the
proposed project exceeds that hurdle rate. Show appropriate calculations to justify your
statement. (4 marks)
d) Looking back over your calculations for i), ii), and iii), provide appropriate advisory
comments. (Maximum of 250 word) (8 marks)
Discount tables are included at the end of this examination paper. Do NOT use Excel
discounting function in your calculations. Instead use ONLY the discount tables at the end
of this alternative assessment.
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Part B [25 marks] – Choose and answer ONE Question
QUESTION B1 [25 marks]
Hot Boil Limited manufactures one model of heating equipment, and does so by assembling
kits it purchases. The company is considering introducing a standard costing system. It has
piloted the system for one month with i) standard costs based on planned monthly
production and sales of 5,000 units, and ii) fixed overheads being absorbed into production
costs on the basis of Direct Labour Hours.
For the month in question it was anticipated that:
unassembled kits will cost in total £155,000, with each piece of equipment using one
kit
labour time spent on assembling kits into completed units will take 2,500 hours, with
total direct labour cost of £30,000
fixed overheads will be £15,000
the selling price will be set by adding 25% to the standard cost.
Actual figures for the month in question, based on production and sales of 6,000 units,
were:
total cost of unassembled kits used was £198,000
labour time spent on assembling kits into completed units was 4,500 hours, with total
direct labour cost of £45,000
fixed overheads were £12,500
the selling price was £25
Required
(a) Explain the nature and purpose of a standard costing system. (Maximum of 250
words) (8 marks)
(b) Prepare the Standard Cost Card for the month in question for one unit. (5 marks)
(c) Using the principles of Standard Cost Variance Analysis, calculate variances from
standard. Show your workings If there is a particular area with no variance, state there is
none and show your workings. Reconcile the budgeted and actual profits.
(12 marks)
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QUESTION B2 [25 marks]
In the last week of January 2027, a radio presenter broadcasted the following:
Machad fe i deede hei ae de cce, dc ae Macb
3000. They hope to entice buyers away from Apple and Microsoft to a product which they
claim to be the most powerful yet efficient that has ever been produced. They claim to have
developed a new method of wiring and connecting key components to the motherboard,
which will revolutionise the upmarket gaming portable computer. This would explain why
the launch was pushed back from Autumn 2026 to Spring 2027.
Deie he dc eident value proposition, identifying the correct selling prices will be
a critical element in obtaining a leading market share. An initial announcement from
Macrohard indicate prices are expected to range from £18000 to £26,000. Macrohard also
mentioned they would aim to sell 140,000 laptops a year to break even and recognise that
hi d be a ie a, gie he gaig ae f feia gae. Hee,
hi i a chaege he ca affd fai. The ha he Macb 3000 i he
a chace a i e-founded.
Assume:
Retail Selling Price £22,000 (average of £26,000 and £18,000)
Trade Selling Price 75% of Retail Selling Price
Total Cost 80% of Trade Selling Price
Variable Cost X% of Total Cost
Assume there are 360 days in a year
Required
Cacae he a fied c f he Machad 3000 ec if X i
a) 50% (5 marks)
b) 65% (4 marks)
c) 80% (4 marks)
Show your answers, for a) b) c), as an annual total and in £/day.
d) If he aiabe c i 65% f a c, h a Machad 3000 d eed
be sold to reach a £100 million profit? (4 marks)
e) If 200,000 Machad 3000 ee d i he ea, aig he ae aiable
cost from (d), how much profit would they make? (3 marks)
f) If he a caia eed he Machad 3000 ec i 10,000 ii ad
the shareholders of Macrohard wanted a 20% return on capital employed (ROCE), how
many laptops would need to be sold? (5 marks)
←
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Part C [45 marks] – Choose and answer any THREE questions
QUESTION C1 [15 marks]
Required (Up to 500 words limit)
An eee ehea he CEO f a ccef bie cai: Uig iee
appraisal tools is only one part of the puzzle. There are other aspects to consider for
aegic e. Explain the CEO statement. In so doing explain and illustrate the
investment process by exploring the management of an investment project.
(15 marks)
QUESTION C2 [15 marks]
Required (Up to 500 words limit)
Identify and discuss the steps that management should follow in order that budgets are set
so that they are consistent with an gaiai long-term strategy.
(15 marks)
QUESTION C3 [15 marks]
Required (Up to 500 words limit)
Explain the nature, purpose and characteristics of a system which uses contribution to help
determine the most effective use of scarce resources. In so doing, use figures of your own
invention to illustrate your explanation. (15 marks)
QUESTION C4 [15 marks]
One of your friends attended a management accounting briefing seminar recently. In that
eia he eee aed ha aage ae ee abe ae he igh decii
by looking exclusively at relevant costing. The presenter also commented that full cost
never helped any manage each he igh decii. Y fied ha eed cfed
and has asked for your help.
Required (Up to 500 words limit)
Ciie he eee aee. I dig eai ad iae h eea c ad
full costs are compiled and how each does and does not help in decision making.
(15 marks)
✓
✓
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END OF ALTERNATIVE ASSESSMENT
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Section C: Module Learning Outcomes covered in this
Assignment
This assignment contributes towards the achievement of the following stated module
Learning Outcomes as highlighted below:
Understand and evaluate investment appraisal decisions, payback, net
present value and internal rate of return
Understand the nature of and apply incremental cash flows in decision
making
Explain, apply and evaluate the various contemporary performance
measurement and management frameworks
Understand the nature of and apply the idea of contribution and costvolume-
profit (CVP) Analysis
Understand the nature of and apply budgetary control and variance
analysis.
Understand the nature of and apply relevant cost in decision making
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Section D: Assessment of this Coursework
Within each section of this coursework you may be assessed on the following aspects,
as applicable and appropriate to this particular assessment, and should thus consider
these aspects when fulfilling the requirements of each section:
The accuracy of any calculations;
The strengths and quality of your overall analysis and evaluation;
Appropriate use of relevant theoretical models, concepts and frameworks;
The rationale and evidence that you provide in support of your arguments;
The credibility and viability of the evidenced
conclusions/recommendations/plans of action you put forward;
Structure and coherence of your considerations and reports;
Academic judgement regarding the blend of scope, thrust and communication
of ideas, contentions, evidence, knowledge, arguments, conclusions.
Each part has requirements with allocated marks, maximum word count
limits/page limits.
You are advised to refer to the UCL Assessment Criteria Guidelines, located at
https://www.ucl.ac.uk/teaching-learning/sites/teaching-learning/files/migratedfiles/
UCL_Assessment_Criteria_Guide.pdf
Section E: Groupwork Instructions
This is NOT a group work assessment and there no associated instructions.
Section F:
