COAC216 Cost Accounting Proof Reading Services

COAC216 Cost Accounting Assignment Help

COAC216 Cost Accounting Proof Reading Services

a.) Introduction

Boral Ltd. is multinational company deals into building and construction materials. It is an Australian based organisation. It get formed by demerging from Old Boral company afrer demerging its name become Origin Energy as it is engaged into their old business of energy assets. And "new" Boral Ltd. comprises of building and construction materials. Both companies are separately listed companies in Australian Stock Exchange (AUX) and both are entirely independent. The company's address is "L 30 Mount St, North Sydney NSW 2060, P: +612.92206300, F: +612.92336605."

COAC216 Cost Accounting Assignment HelpVision and Mission:

Boral's vision is to Build Something great such as high performing and sustainable product for customers, best returns sector to shareholders, safe, challenging and rewarding workplace for their employees and socially responsible for their society (Hay & Hay, 2015).

"Boral's Mission is to create sustainable solutions for worldwide building and construction industry."

Their focused products are related to the building and construction materials such as quarry products, cement, fly ash, pre-mix concrete and asphalt, clay bricks and pavers, clay and concrete roof tiles, concrete masonry products, timber, plasterboard and lightweight trim and siding.

As per the managerial review it get identified that they are performing well as they are growing effectively and earning adequate amount of profits as compare to their last year's profits. Managerial review primarily focused over the safety and security of their employees and with this effect they reduce the injury frequency rate by 11% (Hay & Hay, 2015).

With all these aspects they keep on focusing over the improving requirements in order to enhance their activities for the purpose of attaining leading position in the market by gaining upturns in the demand.

Boral's line function is huge as they are dealing in lot many products and there is significant increase in the demand of their products due to their quality measures. On the other hand their staff function is also growing as they give employment to 12,000 individuals (Hay & Hay, 2015).

Boral is doing effectively as it make production of various building and construction material with an vision to become an profitable and effective organisation for their customers, employees, shareholders, etc.


b.) Identify and describe the value chain of the manufacturing company.

Boral Ltd. running business in the segment of building and construction materials. They operate their business activities from different segments such as construction materials and cements, Boral Gypsum Joint venture, Boral USA and Unallocated. In the February month of 2000 it was founded and its headquarter is located in North Sydney, Australia (Cable, 2010).

The supply made by the construction materials and cements include quarries, concrete, concrete placing, cement, property, asphalt, landfill and transport.

The Boral gypsum joint venture segment is the 50-50 joint venture segment between the Boral Ltd. and USG group and this joint venture is responsible for manufacturing and making sales of plasterboard and its associated products.

The Boral USA segment is engaged into manufacturing of clay bricks, roof tiles, fly ash, quarries. cultured stones and concrete. Whereas its unallocated segment is involved into non-trading operations and unallocated corporate costs (Cable, 2010).

non-trading operations and unallocated corporate costs

c.) Explain the process of planning in the manufacturing company for three issues?

Boral's strategies:

Boral's strategy is driven by value and market as they are focused over building and construction material supplier, operating in Australia and increasing globally. The objectives of Boral are: -

1. Deliver better returns over investments as compare to the competitors in their respective markets.
2. Deliver higher returns to their shareholders.
3. Achieve sustainable superior returns for a longer period of time (Loussikian, 2015).

Boral's strategic policy and objectives helps in defining what and where Boral want to be. They are effectively focused over redelivering value to shareholders, customers and other stakeholders of the company. They make inclusion of corporate values such as Leadership, respect, Focus, persistence and performance get referred in their Strategic intent in order to reinforce their ongoing importance.

With the help of the market driven focus they get to know about the needs of market in the form of improved product development and innovation processes. With the help of it they are effectively aware about the future market trends and effectively make anticipation related to the customer's changing needs (Loussikian, 2015). Boral's strategy include: -

1. providing better value services and products to customer as compare to their competitors.
2. They invest in people in order to grow as best in their industry.
3. They make ensure that their operations are sustainable in terms of social, employee and environmental impacts.
4. Encouraging and implementation of innovation into further improvements among their processes, products and services in order to satisfy the needs and wants of their markets.

Australia is having 12th largest economy and a developed country and infrastructure in Australia is keep on increasing on yearly basis. Along with this there is cut in interest amount that attract more and more construction and increase in investment in infrastructure. Boral provide such products that get utilised in each stage of building an house. In order to avail the opportunity Boral need to focus over various things such as use of high level technology, high quality materials in order to guarantee the long term durability (Huang, et. al., 2014).

Boral is having solid fundamentals in order to follow an short-term investment strategy.

Industry analysis: -

Boral is the considered among the top performer of construction material supply industry. They attain various manufacturing plants within Australia and distribute with the help of retail outlets and also directly to building sites. The major competitor of Boral is CSR as it had large market share of 29.5% as compare to Boral's 20.5% in plaster manufacturing industry (Huang, et. al., 2014). Market analysis for Boral as plaster industry such as: -

Threat of new entrants:The threat is low as plaster products are heavy and low cost shipping. If new entrants wants to grab the opportunity then they need to establish manufacturing unit that requires huge amount of investment.

Threat of substitutes:The threat is low as it is the low cost product and hard to sell substitute products (Huang, et. al., 2014).

Customers bargaining power:The threat is medium as there is great opportunity is available in the form of increase in infrastructure that lead to increase in customers bargaining power.

Suppliers bargaining power: The threat is low as the raw-material utilised for manufacturing plaster is supplied from Boral's joint venture company USG Boral that lower down the suppliers bargaining power (Huang, et. al., 2014).

Existing rivalry: The threat is medium as Boral's direct competitor is CSR that attain high market share of 29.5%.

d) Analyse the process of Controlling in the manufacturing company for two issues:

How can it monitor its manufacturing &/or selling plans?

Boral Ltd. make use of PDCA cycle in order to monitor their manufacturing and selling plans.

PDCA get extended as Plan-Do-Check-Act: - It is an effective management method utilised for control and continuous improvements of plans (Okongwu, et. al., 2015).

Plan: -Boral establish objectives and processes which are considered as necessary in order to deliver results in order to get the set targets. With the help of establishing output expectations, the completeness and accuracy also become the part of their targeted improvement (Okongwu, et. al., 2015).

Do: -The above established plan get executed in effective manner and collect the results for analysis.

Check: -Boral Ltd management analyse and measure the results collected in 2nd step and make their comparison with their expected or budgeted results in order to get the variances. Variances can be favourable or adverse. With the use of these variances adequate information is prepared (Okongwu, et. al., 2015).

Act: -Boral Ltd. management make use of prepared information in 3rd step in order to evaluate whether the plans are effective or not. If the plans are effective then get set an new standard otherwise they effectively evaluate the measures in order to make required improvements.

It is continuous process and Boral Ltd. need to focus over improving their manufacturing as well as selling plans and also put adequate level of control over it with the help of PDCA cycle (Shafia, et. al., 2011).

How can the manufacturing company implement a balanced scorecard in its performance management system across the four perspectives: financial, customer, process, and learning & growth?

Balanced scorecard is a strategy performance management tool or an semi-standard structured report that get utilised by management in order to track down the execution of activities. The major characteristics are its focuses over organisational strategic agenda, select small number data in order to monitor and it is a mix of financial and non-financial data. Boral implement balanced scorecard for its performance management system (Chang, et. al., 2013).  

With the implementation of the balanced scorecard Boral effectively control its performance management system. As balanced scorecard is not only include financial measures along with this they also include customer satisfaction, internal processes and their ability of learning and attaining growth in order to drive the future financial performance. Boral's management make use of their strategy and mission statement among specific goals and measures in order to create their balanced scorecard (Chang, et. al., 2013). They make inclusion of all the factors focuses over different aspects such as customer perspective, financial status, internal operations and learning requirements. With the help of the learning requirements they effectively train their employees so that they make adequate level of processing which include effective level of services to satisfy their customers and in the end it increases the profitability. For example: Boral need to innovate their products in order to satisfy the needs and wants of their customers, as it helps in increasing market share as well as their profitability (Chang, et. al., 2013).

e) Provide two situations in which Decision Making is presented in the manufacturing company.

Boral face lot many challenges and over these challenges they took effective decisions such as: -



In Australia cement has high cost of manufacturing whereas imports having lower costs.

Boral decided to increase imports and reduce manufacturing cement. The cease clinker production at Waurn Ponds (effective from April 2013) and Closing Maldon Kiln (with the effect from Dec 2014).

Higher capacity among markets such as asphalt supply in Qld region.

Boral's strengthen its leading resource position which include new Peppertree quarry that get supplied to the Sydney market.

Some markets having difficult pricing environment.

Boral conduct programs for cost reduction along with focused over price strategies and integrated with business structure for the purpose of attaining competitive advantage.

CFMEU boycotts in order to continue in Melbourne.

Boral took legal action against CFMEU conduct in Melbourne.

Hard to maintain community support for operations.

Boral management enhanced community consultation program such as "New Larulan limestone community awareness campaign" and "in-house community liaison officers".

High input costs and high fixed cost assets.

Boral started restructuring in order to reduce cost and return back to profitability.

At peak of cycle they didn't attain acceptable returns from their division.

They complete their joint venture with CSR to provide strength to their bricks business.

(Valmohammadi & Ahmadi, 2015)

f) Summary of interesting findings and any recommendation/prediction.

Summarize and present three significant points of the discussion topics in your report in a coherent manner.

Boral ltd. was formed by demerging from "old" Boral company in February 2000. Earlier they are indulge into energy assets and it get renamed as origin energy. Boral ltd. is running their business in the building and construction material industry. Boral Ltd. having diverse products as well as different units. They are performing in Australia, USA and Asia. Boral's different segments are construction materials and cements, Boral Gypsum Joint venture, Boral USA and Unallocated. With the help of these segments they are running their business activities in effective manner (Valmohammadi & Ahmadi, 2015).

Secondly their decision making process is effective enough as they gather relevant and effective information from their market in order to took adequate decisions. With the help of it they took various effective decisions for example they face challenge that cement manufacturing demand high costs whereas import of cement is comparatively low. They took immediate decisions to stop manufacturing of cement and start importing cement in adequate manner.

They are competitive enough in their industry and attaining position in leading ones as there is low threat of substitute products (as they are providing low cost quality products), new entrants (setting plant require huge investment) and bargaining power of suppliers (as Boral get some raw-material from their joint venture units). There is moderate level of threat of customers bargaining power (as there is increase in demand that attract other existing business also) and existing rivalry (CSR is the immediate competitor to Boral) (Valmohammadi & Ahmadi, 2015).

Provide recommendation or forecast of the manufacturing company.

There are few recommendation or forecasting such as: -

1. In the near future there is adequate increase in the share price of Boral.
2. Boral need to forecast the demand of local market as well as global market in order to increase their market share.
3. They need to complete their joint venture with CSR in order to enhance their bricks business.
4. They need to focus over increasing their market share in order to become a leading supplier.
5. They need to export their products into different countries in order to become global supplier of building and construction materials (Valmohammadi & Ahmadi, 2015).


Cable, J. 2010, Building a green future--brick by brick: Boral Bricks leads the way in placing the ancient craft of brick making on the cutting edge of sustainability, Penton Media, Inc., Penton Business Media, Inc. and their subsidiaries.

Chang, H.H., Hung, C., Wong, K.H. & Lee, C. 2013, "Using the balanced scorecard on supply chain integration performance—a case study of service businesses", Service Business, vol. 7, no. 4, pp. 539-561.

Hay, D.L. & Hay, G.A. 2015, "Areeda–Turner “Down Under”: Predatory Pricing in Australia Before and After Boral", Review of Industrial Organization, vol. 46, no. 3, pp. 269-286.

Huang, T., Pepper, M. & Bowrey, G. 2014, "Implementing a Sustainability Balanced Scorecard to Contribute to the Process of Organisational Legitimacy Assessment",Australasian Accounting Business & Finance Journal, vol. 8, no. 2, pp. 15-34.

Loussikian, K. 2015, Boral tips higher earnings, News Limited, Canberra, A.C.T.

Okongwu, U., BRULHART, F. & Moncef, B. 2015, "Causal linkages between supply chain management practices and performance: A balanced scorecard strategy map perspective",Journal of Manufacturing Technology Management, vol. 26, no. 5, pp. 678.

Shafia, M.A., Mazdeh, M.M., Vahedi, M. & Pournader, M. 2011, "Applying fuzzy balanced scorecard for evaluating the CRM performance", Industrial Management & Data Systems,vol. 111, no. 7, pp. 1105-1135.

Valmohammadi, C. & Ahmadi, M. 2015, "The impact of knowledge management practices on organizational performance: A balanced scorecard approach", Journal of Enterprise Information Management, vol. 28, no. 1, pp. 131-159.