Assessment 1- Individual Project and short question answer.
Course Name: FNS50215 DIPLOMA OF ACCOUNTING
Subject Name: FNS502B MANAGEMENT ACCOUNTING
Method: Individual Project and short question answer.
Assessment No.: 1
Due Date: Week 6
Competency Title/s: FNSACC607 Evaluate business performance
FNSACC507 Provide management accounting information
Purpose of Assessment
The purpose of this assessment is to evaluate students for the performance outcomes, skills and knowledge required to analyse trends in an organisation's business operations, develop performance indicators and identify options for improvement.
This subject also describes the skills and knowledge required to gather, record and analyse operating and cost data, prepare budget reports and review costing systems integrity to calculate and record the costs of products and services.
Description of Assessment
This task requires engaging students to assess interpersonal, communication, and collaborative skills. This assessment addresses the elements of competency for the units ‘FNSACC607 Evaluate business performance’ and FNSACC507 Provide management accounting information as listed below:
• Analyse trends in performance
• Develop performance indicators
• Identify options for improvement
• Gather and record operating and cost data
• Analyse data and assign costs
• Prepare cost reports and budgets
• Analyse variances and review costing system integrity
Your assessment will be required to be typed in Arial font size 12 only. You will provide your completed assessment for all of questions in one document and MUST be uploaded into MOODLE (No other method of submission will be accepted).
You are required to professionally format your document including spell-check and indicating each Task answer [e.g. Task 1 (a.) then the answer, Task 1 (b.) then the answer etc.] according to this Assignment requirement. You may lose marks if you have not spell-checked your document (as this is a professional formatting requirement, a business skill).
This assessment can be completed in one of several ways. Assessment candidates may identify unit requirement within their own work environment or organisation, or with reference to a scenario provided by the trainer/assessor.
Be sure to properly reference your sources of information using the Harvard referencing system. For more information go to:-
• Student Handbook - latest version
• Ask your Trainer/Assessor to provide you with this information
In order to determine if you are addressing this assignment adequately in terms of competency/comprehension (prior to due date) a draft copy of your assessment should be discussed during class time in consultation with your Trainer/Assessor. For this feedback/ support from your Trainer/Assessor, you will need to bring to class your “draft copy” with any evidence of the research you have conducted to produce the assessment.
If, as a student you feel you have special needs that require your Trainer/Assessor to apply a reasonable adjustment – please discuss this with your Trainer/Assessor at the beginning of the subject studies.
Your Assignment must:
a. Be of a professional standard (spelling, grammar, punctuation)
b. Size 12, Arial Font
c. 1.5 Spacing
d. All pages must have a Header/Footer with the following details:
o Student ID
o The course & unit of competency
o Page numbering
e. Title page
f. Index page
g. Body of work
How to upload your answered assessment into MOODLE
To upload your assignment into Moodle, follow these steps.
1. Log-in to Moodle and access the subject that you will be submitting the assignment in.
2. Locate the assessment you will be uploading into by scrolling down to the week that the assessment is due in and then click on the assessment submission link.
3. Click on the name of the assignment.
4. Click the Browse button.
5. Select the file and click Open.
6. Click the Upload this file button.
7. If you have more than one file, repeat the process (steps 4-6) to attach additional files up to the assignment's limit.
8. Once happy with your submission click the Send for marking button. The files are locked and the student can no longer delete, or upload more, files.
Note: The date and time of the submission is recorded when the files are sent for marking, not when they are first uploaded.
Total Marks: 100
Question 1. (10 marks)
What is strategy? Briefly describe the two broad types of strategies that companies may choose to pursue. How can the efficient use of organisational operating procedures promote the effective implementation of company strategy?
Question 2 (10 marks)
Describe how managers make use of management accounting information. List two common methods of data protection which managers use to secure management accounting information.
Question 3 (10 marks)
. Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other? List two common routines for recording and storing financial data.
Question 4 (10 marks)
Explain how a budget can help management implement strategy. Identify two practices of budgetary control which may be applied on a regular basis to preserve the integrity of the accounting control process.
Question 5 (10 marks)
The following information pertains to Ball Company:
Manufacturing costs $2,400,000
Units manufactured 40,000
Beginning inventory 0 units
39,800 units are sold during the year for $100 per unit.
a. What is the average manufacturing cost per unit?
b. What is the amount of ending finished goods inventory?
c. What is the amount of gross margin?
Question 6 (10 marks)
Evans Inc. had the following activities during 20x1:
Beginning inventory $ 40,000
Ending inventory 20,800
Direct manufacturing labour 32,000
Manufacturing overhead 24,000
Beginning work-in-process inventory 1,600
Ending work-in-process inventory 8,000
Beginning finished goods inventory 48,000
Ending finished goods inventory 32,000
a. What is the cost of direct materials used during 20x1?
b. What is cost of goods manufactured for 20x1?
c. What is cost of goods sold for 20x1?
d. What amount of prime costs was added to production during 20x1?
e. What amount of conversion costs was added to production during 20x1?
Question 7 (10 marks)
Berhannan’s Cellular sells phones for $100. The unit variable cost per phone is $50 plus a selling commission of 10%. Fixed manufacturing costs total $1,250 per month, while fixed selling and administrative costs total $2,500.
a. What is the contribution margin per phone?
b. What is the breakeven point in phones?
c. How many phones must be sold to earn pre-tax income of $7,500?
Question 8 (10 marks)
Alex Miller, Inc. sells car batteries to service stations for an average of $30 each. The variable cost of each battery is $20 and monthly fixed manufacturing costs total $10,000. Other monthly fixed costs of the company total $8,000.
Required: (Use a spreadsheet clearly identifying the input variables and output section with applicable formulae)
a. What is the breakeven point in batteries?
b. What is the margin of safety, assuming sales total $60,000?
c. What is the breakeven level in batteries, assuming variable costs increase by 20%?
d. What is the breakeven level in batteries, assuming the selling price goes up by 10%, fixed manufacturing costs decline by 10%, and other fixed costs decline by $100?
Question 9 (10 marks)
Hill Manufacturing uses departmental cost driver rates to apply manufacturing overhead costs to products. Manufacturing overhead costs are applied on the basis of machine-hours in the Machining Department and on the basis of direct labour-hours in the Assembly Department. At the beginning of 20x3, the following estimates were provided for the coming year:
Direct labour-hours 10,000 dlh 90,000 dlh
Machine-hours 100,000 mh 5,000 mh
Direct labour cost $ 80,000 $720,000
Manufacturing overhead costs $250,000 $360,000
The accounting records of the company show the following data for Job #846:
Direct labour-hours 50 dlh 120 dlh
Machine-hours 170 mh 10 mh
Direct material cost $2,700 $1,600
Direct labour cost $ 400 $ 900
a. Compute the manufacturing overhead allocation rate for each department.
b. Compute the total cost of Job #846.
c. Provide possible reasons why Hill Manufacturing uses two different cost allocation rates.
Question 10 (10 marks)
Hammond and Jarrett provide tax consulting for estates and trusts. Their job-costing system has a single direct-cost category (professional labour) and a single indirect-cost pool (research support). The indirect-cost pool contains all the costs except direct personnel costs. All budgeted indirect costs are allocated to individual jobs using actual professional labour-hours.
a. Discuss the reasons a consulting firm might use a normal costing system rather than an actual costing system.
b. What might be some reasons for the firm to change from a one-pool to a multiple-pool allocation concept?
Course Name Diploma of Accounting
Subject FNS502B - Management Accounting
Evidence Technique Individual Project and Short question answer.
Assessment No.: 1
Trainer Name Anindya Chowdhury
FNSACC607 Evaluate business performance
FNSACC507 Provide management accounting information
Student Name Student No: Final Mark
Item Allocated Marks Achieved Marks
Question No. 1 10
Question No. 2 10
Question No. 3 10
Question No. 4 10
Question No. 5 10
Question No. 6 10
Question No. 7 10
Question No. 8 10
Question No. 9 10
Question No. 10 10
Total Marks 100
Feedback and Trainer’s Comment:
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