Assignment Brief

RQF Unit 5 Management Accounting

Unit level 4

Unit code H/508/0489

Term Start Date 27/02/2017

Hand out date 27/02/2017

Submission Deadline 21/05/2017

Lectures & Formative Assessments 10 Weeks

Guided learning hours 60

Module Leader Imoh Itieimoh

pg. 1 February 2017

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

pg. 2 February 2017

 [This will enable you to achieve P1 and P2]

Merit & Distinction: This task provides you with the opportunity to achieve Merit (M1)
and Distinction (D1).

To achieve M1 you will need to evaluate the benefits of management accounting systems
and their application within the context of Imda Tech (UK) Limited.

To achieve D1 you will need to critically evaluate how management accounting systems
and management accounting reporting is integrated within organisational processes.

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)

Production 2,000
Sales 1,500

pg. 3 February 2017

You are required to prepare income statements for the month of September using;

I. absorption costing and

II. marginal costing methods

[This will enable you to achieve P3]

Merit & Distinction: This task provides you with the opportunity to achieve Merit (M2)
and Distinction (D2).

To achieve M2 you will need to accurately apply the techniques and reconcile the profits
to produce appropriate financial reporting document.

To achieve D2 you will need to accurate apply and interpret the data for the business
activities.

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

[This will enable you to achieve P4]

Merit & Distinction: This task provides you with the opportunity to achieve Merit (M3)

pg. 4 February 2017

and Distinction (D3).

To achieve M3 you will need to analyse the use of the different planning and their
application for preparing and forecasting budgets

To achieve D3 you will need to evaluate how planning tools for accounting respond
appropriately to solving financial problems to lead to sustainable success.

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 organisation
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 non-
financial).

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.

[This will enable you to achieve P5]

Merit & Distinction: This task provides you with the opportunity to achieve Merit (M4)
and Distinction (D3).

To achieve M4 you will need to analyse how, in responding to financial problems,

management accounting can lead organisations to sustainable success.

To achieve D3 you will need to evaluate how planning tools for accounting respond

pg. 5 February 2017

appropriately to solving financial problems to lead to sustainable success.

THE END

pg. 6 February 2017

Glossary of commonly used academic words

Account for Give reasons for: explain why something happens.

Analyse Examine something in very close detail and from a number of

angles. Identify the important points and chief features, and
understand their relationships.

Argue Present a case for and against a proposal or statement and

present your own opinion at the end.

Compare Show how two or more things are similar.

Contrast Look at two or more things and draw out differences. State
whether the differences are significant.

Critically evaluate Weigh arguments for and against something, assess the strength
of evidence on both sides.

Define Give the exact meaning of.

Describe Give a detailed account of the main features or characteristics ...

Discuss Write about the most important characteristics of something.

Give arguments for and against, look at it from a variety of
perspectives.

pg. 7 February 2017

 Distinguish Identify the differences between two items.

Evaluate Assess the worth or usefulness of something. Use evidence to

support your opinion.

Examine Look at something in detail. You may be expected to 'critically

evaluate' it as well.

Explain Make it clear why something happens or why it is the way it is.

Identify Recognise name and briefly describe something.

Illustrate Use examples to further explain or justify something. Could be

visual or verbal.

Interpret Explain the meaning or significance of information or data that

you are presenting.

Justify Provide evidence that supports an argument or idea.

Outline Give only the main points, show only the main structure.

Prove Present evidence in a logical structure to support an argument for

a point of view.

Relate (Two
1. Show how ideas / theories/ events etc are linked or connected.
meanings)

pg. 8 February 2017

 2. Tell a story. Explain something in a narrative fashion.

Review Survey and comment on the key aspects of something or a range

of things.

State Give the main features clearly and simply.

Summarise Draw out the main points, omitting detail and examples.

To what extent How far is something true, or contributes to a final outcome. Also
how far is it not true? In academic writing the answer is usually
somewhere in the middle.

Trace Describe the development of something; follow the order of

different stages in an event or process.

Adapted from Cottrell.S.(2003) The Study Skills Handbook. Basingstoke. Palgrave.

pg. 9 February 2017