SUNDERLAND BUSINESS SCHOOL
Module Title: Strategic Management Accounting
Module Code: APC309
Submission Date: Monday 11th April 2011
Individual assignment
General Information
Weighting – 100% of the marks for this module
This is an individual assignment of 3,000 words (+/-10%), excluding appendices and bibliography. The word count MUST be shown on the front of the assignment.
There are TWO questions to be answered in this assignment. Each question carries a maximum mark of 50%.
All of the learning outcomes for the module are being assessed in this assignment. The learning outcomes are shown in the section entitled “Marking Guide”, which is further on in this document.
The University’s policy on cheating collusion and plagiarism will be applied to this piece of work.
You are required to produce a report which answers the following TWO questions:
Question 1
You have been asked to advise two entirely different businesses about the benefits and problems associated with what is termed the “traditional approach to budgeting and budgetary control”. One of the businesses operates in a very stable and static market place, where there is little change in either products or demand year on year, whereas the other business operates in a very dynamic, rapidly changing, innovative environment.
If your findings suggest that the traditional approach is inappropriate for one or both of the businesses, please summarise some alternative approaches.
The “traditional approach” typically involves the following processes:
1)Development of assumptions and plans about the factors influencing next year’s budget in advance of the budget year starting;
2)Approval of the budget before the commencement of the budget year;
3)Once the budget year has started, there are monthly comparison reports which compares budget and actual performance on both a monthly and cumulative basis;
4)Action being taken (where necessary) to correct large variances or differences.
Question 2
XYZ Limited is a medium sized manufacturing business which makes and sells products to a range of industrial customers who use XYZ’s products in their own products. The working capital of XYZ is typical of a manufacturing organisation in that at any point in time they have cash, debtors, stocks of raw materials, work in progress and finished goods and creditors. The Managing Director of XYZ Limited believes that all parts of the working capital cycle could be improved and has asked you to produce a report which discusses how each part of the working capital cycle could be improved and which critically evaluates the implications of the improvements on XYZ and others (for example debtors).
Guidance:
Students are encouraged to be inquisitive and innovative in their approach as to what should be included in this report. The following may be of some use in providing guidance as to what could possibly be included, although this is in no way meant to be prescriptive.
The aim of the assignment is to help you understand how key areas of strategic management accounting are demonstrated in practice by a large, international company. This will include investigating topics from throughout the course linked to the above issues. Some of the principles, concepts ad models will be more relevant to your chosen approach than others and so it is likely that different students will formulate different approaches to the problems. This is normal, it is not expected that all of the course content will be used in the analysis, concentrate on that which you feel is most important.
As part of your work you might find it helpful to briefly explore the underlying theory behind the key areas of investigation that you identify before applying them to report.
With a total of 3,000words you do not have a lot of room for long introductions so assume you are writing to a sophisticated audience who has a working knowledge of strategic management accounting andis well versed in business theory. Numerical example for illustrative purposesmay be of usebut should not be the main thrust of the work. If used they should be to provide evidence to support your findings from your other analysis of position and policies.If other sources are usedremember to reference everything!
Please avoid relying too heavily on descriptive sections reproducing information available from course material or the set text. It is your own logical, evaluation of the situation, the interpretation of course material and presentation, with critical analysis, of a coherent strategic plan that will attract high marks.
Marking Guide
The learning outcomes for this module assessed by this piece of work are
Knowledge
- Critically evaluate a range of key strategic management accounting models and concepts.
- Critically understand of specific analytical skills in key areas within management accounting at local and international level
- Critically understand of the role and limitations of management accounting theory.
Skills
- Applied the key management accounting concepts and methodologies in order to contribute to successful decision making in an organisation.
In light of this the assessment criteria in the grid below will be used when assessing your work.
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ASSESSMENT CRITERIA
Criteria / Fail (<34) / Fail (35-39) / 3rd (40-49) / 2:2 (50-59) / 2:1 (69-69) / Ist (70+)Knowledge of relevant concepts and issues / Fails to identify the majority of the concepts relevant to the question or introduces topics that are not relevant. The ordering of the concepts indicates a lack of understanding of key concepts. / Fails to identify the majority of the concepts relevant to the question. Those concepts that are used are misapplied. The ordering of the concepts is in appropriate. / Identifies some of the key concepts, but not all o f them, or displays an in correct understanding of some of the concepts discussed. The ordering of the concepts may be adhoc. / Identifies and utilises some of the key concepts relevant to the question. Uses some of the concepts, but not always in an appropriate context. The work is ordered appropriately / Identifies the majority of the key concepts relevant to the question and uses them in an appropriate context. Orders and structures them in a logical sequence / Identifies all of the key concepts relevant to the question and uses them in an appropriate context. The material is structured to show significant understanding of the key issues.
Depth of understanding and extent of critical evaluation (including evidence of wider reading) / The student has failed to address the question set or appears to have answered a different question to that set. There is no evidence of any reading. No key issues identified. / There is no evaluation of the validity of the sources used or the work is based on one key source. Inappropriate sources are used extensively. There is no evidence of appropriate wider reading. No reflection on key issues. / There is some evaluation of the materials used in the work. The work is based on a limited number of appropriate sources.
Little reflection on key issues. / Good evaluation of materials used, with discernment obvious as to key sources. The work is based on a number of appropriate sources. Some reflection on key issues. / Good evaluation of all key/important sources materials used. The work is based on a wide range of appropriate sources. Good reflection on key issues. / The work is set in a context where wider reading and appreciation of the context is obvious. The material included is relevant to the topic and appropriate in addressing the key issues identified in the assignment
Evidence of appropriate analysis / The student fails to draw any relationships from the material used or the student is incorrect in the relationships that they draw. / The student draws one or two basic relationships from the material used, but then subsequently misapply these concepts. / The student draws one or two basic relationships from the material used, but fails to identify other important relationships. There may be some evidence they have not clearly understood all of the material they have presented / The student draws some limited relationships from the material used. There might be minor issues where the student is incorrect in the assertions that they make, but overall they demonstrate appropriate analysis. / The student starts to demonstrate they understand the key relationships from the material used. There are no substantive errors in their analysis. / All the key connections are drawn between materials from different sources. The student makes no substantive errors in their analysis and reflects upon the key issues identified in their analysis.
Ability to synthesise relevant material from a range of sources / The student fails to use any appropriate sources. There is extensive repetition of notes given out in class. / The student uses just a few non-academic sources of information or the material used is inappropriate for UG level study. They quote verbatim extensively from one or two sources. They use quotations incorrectly to support an argument. / The student uses a few sources of information or the material used is inappropriate for UG level study. Extensive verbatim quotes are used as a replacement for the students own work. / The student may be limited in their use of academic sources such as journals and books, but there is evidence that they have attempted to access a range of sources including non-academic ones. / The student has accessed a range of academic sources such as journals and books, and also appropriate non-academic ones. Verbatim quotes are used to enhance the arguments being developed rather than as a replacement for the students own work. / The student has accessed a wide range of appropriate sources. They make reference to a wide range of material in their work. Verbatim quotes are used from a range of sources to illustrate and support the arguments being developed, but without becoming a substitute for the students own work.
Structure and clarity of presentation. / The work has no coherent structure. The work is littered with spelling and typographical errors. Very poor use of English. Where appropriate tables/graphs are not used. Referencing is poor or non-existent. / The work is poorly organised, and structured. There are many spelling and typographical errors. Poor use of English. Where appropriate tables/graphs are not used. Referencing is patchy and incomplete. / The work is poorly structured. There are spelling and typographical errors. Poor use of English. Where appropriate tables/graphs are not used appropriately. Some of the referencing is incomplete / The work has a clear structure and generally a logical progression. Occasional typographical and spelling errors. Some use of tables/graphs is made where appropriate. / The work has overall a coherent structure and a clear and logical progression. Very few typographical and spelling errors. Good use of tables/graphs is made where appropriate. / The work is well structured with clearly defined objectives that are achieved. Typographical and spelling errors are rare. Excellent use of tables/graphs is made where appropriate.
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