ACT507 Accounting for Managers Assignment

ACT507 Accounting for Managers Assignment

ACT507 Accounting for Managers Assignment

Here, students will find important information regarding their assessment 2 of Accounting For Managers.

This is an individual assignment and students are need to solve all three problems mentioned below.

The value of this assignment is 40% and contains 40 marks.

To answer these problems, you will be provided different case scenarios.

Problem 1

Marks for this problems is 12 and you need to complete it in about 600 words.

Required

i. Explain how faster processes can be applied in areas such as engineering and administration. How can reduced process times in these areas help a company be more competitive? (4 marks, max. 200 words)

ii. Explain why improved quality is essential to a company that is able to work faster and reduces process times. (4 marks, max. 200 words)

iii. What are potential problems that may arise from the increased speed of processes? (4 marks, max. 200 words)

Problem 2 

Marks for this problems is 6 and you need to complete it in about 250 words.

Comment on Steve’s observation. What conflicts are created when a company determines its manager’s bonuses based on net profit alone? (6 marks, max. 250 words)

Problem 3

Marks for this problems is 6 and you need to complete it in about 300 words.

Required

i. In general, what do these variances indicate regarding production costs for the period? (3 marks, max. 150 words)

ii. What further information would management find useful in analyzing production costs and variances for the period? (3 marks, max. 150 words)

Problem 4

Marks for this problems is 16 and you need to complete it in about 500 words.

Always Right is a manufacturer of calculators. In the budget-setting process, Budget A was put together by lower and middle management. Budget B was put together by senior management.

                                                                           A                                                  B

Unit sales

20,000

30,000

Dollar sales

600,000

900,000

Less Variable expenses

 

 

   Direct materials

260,000

360,000

   Direct labor

40,000

60,000

   Variable overhead

60,000

75,000

   Variable selling and administrative expenses

60,000

60,000

Total Variable expenses

420,000

555,000

Contribution margin

180,000

345,000

Less Fixed expenses

 

 

    Manufacturing overhead

60,000

50,000

    Selling and Administrative

100,000

80,000

    Taxes and Interest

10,000

10,000

Total fixed expenses

170,000

140,000

Net profit (loss)

10,000

205,000

Required

i. Calculate the cost per unit for the variable costs and present the result in a table form. (4 marks, max. 100 words)

ii. Why do you think budget A has high costs and low sales forecasts? (4 marks, max. 100 words)

iii. Why do you think budget B has low costs and high sales forecasts? What are the behavioral implications of this top-down approach? (4 marks, max. 150 words)

iv. How should the two groups participate to come to a consensus on the budget? What are the advantages of this approach? (4 marks, max. 150 words)

Problems faced by students in completing this assessment

Students may face various problems while writing this assessment including making reference list, lack of academic writing skill, and in calculating the budget cost. Such students can take help and guidance from our account experts. Our experts will help you in getting good grades in your academics.