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Assessment Instrument Assignment 1

Course Name Managerial Accounting Course code ACCT 3102
Semester Spring Year 2019
Maximum Marks 15 Marks
Instructor Dr. Kinslin D.
th
Assignment Due Date 30 March, 2019
i) Assignment should be submitted by electronically through Turnitin
Assessment Submission
ii) Academic dishonesty of any kind is strictly prohibited
Instructions
iii) assignments should be submitted by its due date as scheduled by the
Course Instructor
Word or Page Limit Theory question 500 words and for Problem all steps, answer and decision.
Use the following format:
• Introduction / Formula for the problem
• All necessary steps / Sub points
• Final answer and answer for every stage / Detailed explanation
Presentation Format • Relevant analysis with valid reasoning / Exceptions if any
• Decision making / Suggestions
• Conclusion if requires
• MS Word document, Times new roman , front size 12 and 1.5 line space
• Referencing Use APA or MLA format (minimum 5)
(Instructor provides additional guidelines and directions in class)
Resources and Support College library, internet newspapers, Journals, magazines, or other reference
Available sources.
Description of Assignment one would be given to the students to explore the level of
Assignment Task comprehension, analysis and application of Accounting principles, Managerial
Accounting, Managerial and Financial Accounts.
Course Learning Outcomes Course Learning Outcomes Question
Assessed Number
1. Explain the basic terminology and applications of 1
Managerial Accounting, including difference between
Managerial and Financial Accounts, Management Control
Systems, and Budgeting.

2. Prepare different Budgets, including Cash Budget, 2

Flexible Budgets, etc.
Evaluation Criteria The instructor evaluates assignments and awards marks based on the following
criteria:
1. a) Distinguish financial accounting and management accounting -3 marks
b) Planning, control and decision making - 3 marks
c) Qualitative non-financial issues - 1 marks
d) Similarities and differences - 3 marks
2. a) 8000 units calculation and correct answer - 2 marks
b) 6000 units calculation and answer -2 marks
c) Justification and decision about the answer -1mark

Managerial Accounting ACCT 3102 ASSIGNMENT SPRING- 2019

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1. The Management Accountant plays an important role in the modern business environment and
his/her activities may be categorized as providing information under the key headings of planning,
control and decision making.
You have just been appointed to a new role as Management Accountant in Akwaba Ltd, a large
engineering company producing a wide range of parts for the automobile industry. This new role has
been created following a majority decision of the Board of Directors based on the advice of the
company’s auditors. However, the Managing Director comes from a marketing background and does
not understand why the company needs another accountant as there is already a Financial Accountant
employed on a full time basis. She voted against the creation of the new position and considers the
cost of your remuneration to be an unwelcome burden which will only serve to reduce the company’s
reported profits.
According to her the equation Y= a – bx which management accountant always uses are not relevant
in modern day business environment.
You are aware of the strong opinion of the Managing Director and as your first task, you decide to
attempt to convince her of the importance of Management Accounting in the modern business
environment and also suggest some ways that you can ensure your future role in Akwaba Ltd is
financially viable.

Required:

1. Prepare a Memorandum to the Managing Director in which you address her concerns using the
following guidelines:

a) Distinguish clearly between Financial Accounting and Management Accounting under any
SIX different headings. (3 marks)

b) For each of the THREE key headings of planning, control and decision making; outline one
Management Accounting technique and how it would lead to stronger commercial success for
the company. (3 marks)

c) Identify any THREE qualitative (non-financial) issues that you should consider as a
Management Accountant when providing information for decision making in Akwaba Ltd.
(1 mark)
d) Identify and explain briefly THREE similarities and TWO differences between activity
based costing and the traditional system of assigning overheads to products. (3 marks)

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2. The expenses for budgeted production of 10,000 units in a factory are furnished below
(Amounts in $)

Prepare a budget

a) For production of 8,000 units (2 Marks)

b) For production of 6,000 units (2 Marks)

c) Advise which level is profitable and suitable of the company (1 Mark)

Calculate the cost per unit at both levels

Assume that administration expenses are fixed for all level of production

Managerial Accounting ACCT 3102 ASSIGNMENT SPRING- 2019

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