MAJAN
UNIVERSITY COLLEGE
FACULTY OF BUSINESS
MANAGEMENT
STUDENT ASSIGNMENT COVER SHEET
Module Name and Level :
|
|
Module Code :
|
AC 06-2
|
|
|
|
Assignment
Management Accounting
(Code: AC 06-2)
Assessment one (Report)
Zubair Technologies Co (ZTC) produces
and sells Gadgets for children. The company's main customers are Super stores
like Lulu and Carrefour that sell a Gadget, which can survive rough handling by
children. The Gadgets are individually specified by Stores for each order and
pricing has been on a product cost plus basis with a mark-up of 35%. The
company uses an absorption costing system based on labour hours in order to
calculate the production cost per unit.
The main control system used
within the company is the annual budget. It is set before the start of the
financial year and variances are monitored and acted upon by line managers.
Further financial
information is provided in the below table:
Volume (units)
|
12,300
|
|
|
|
Total
OMR‘000
|
Direct variable costs Material
|
|
21,200
|
Labour
|
|
1,890
|
Packaging and transport
|
|
1,200
|
Subtotal
|
|
24,290
|
Overhead costs
|
|
|
Customer service
|
|
3,650
|
Purchasing and receiving
|
|
1,250
|
Inventory management
|
|
1,060
|
Administration of production
|
|
1,350
|
Subtotal
|
|
7,310
|
Total
|
|
31,600
|
Labour time per unit
|
2 hours
|
Data collected for
the year
|
|
No of minutes on call to customer
|
420,600
|
No of purchase orders raised
|
11,200
|
No of components used in production
|
310,800
|
Order # 5656
|
|
|
Units ordered
|
40
|
|
Direct costs for this order:
|
|
OMR
|
Material
|
|
70,328
|
Labour
|
|
6,600
|
Packaging and
transport
|
|
3,400
|
Their activities
relating to this order:
No of minutes on call to customer 2,604
No of purchase orders raised 160
No of components used in production
1,250
Administration of production
(absorbed as general overhead) 2 Labour hours per unit
The board papers contain a high-level
summary of financial information, comparing performance against budget for
revenue, costs and profit. The CEO is concerned about the performance
information, which is provided in the monthly board papers.
ZTC Key Performance Indicators
are profit, profit margin, free cash flow and return on capital employed.
Although the CEO acknowledges that the fall in profitability is a concern for ZTC
he believes that the company's performance measurement systems should not focus
solely on financial information, but also non-financial information such as
quality, or flexibility in meeting customer specifications etc.
Required
You being
the Management consultant of Zubair Technologies Co (ZTC) have been asked by the management to write a detailed
report on evaluation of traditional absorption costing system against Activity
Based Costing.
Your report should include the following
points with supporting calculations and working notes:
- An
Ideal Introduction to the report which should include relevant literature
review.
- Discussion
on how activity based costing differs from a traditional absorption
costing system.
3.
Evaluate the current method of costing as against
an ABC system, specifically in relation to Zubair Technologies Co.’s Gadgets.
- Determination
of cost per unit, its price, assuming a mark-up of 35% in current
absorption costing and ABC system.
- Analysis
of the impact of introducing ABC system by using Order #5656 cost data.
- Discuss
what action management might take in the
light of results obtained with respect to this order.
- Advantages
and Limitations of ABC system in the current scenario.
- Comment on the importance of non-financial
performance information as well as financial information to achieve Zubair
Technologies Co.’s strategy successfully.
9.
Appropriate Conclusion
The grading of the
Written Report will be based on:
q Information
and Research Completion of Tasks (20 %)
q Understanding
of Issues (20 %)
q Application
and Analysis (35%)
q Presentation
and structure (15%)
q References
(10%)
INSTRUCTIONS
1. This is a group assignment (group of
3 students) and carries a total of 30% weighting for the report and 20% for
viva grade.
2.
The assignment MUST be submitted on-line (through MOVE)
on or before the due date ________
3.
Your assignment shall reflect the depth and breadth of
your original analyses in a clear and coherent manner.
4. Use of the relevant academic literature to
support ideas and issues discussed. The
range of academic sources such as texts and journals to support your arguments
and comments.
5.
Any reference to authors and other writers shall be
quoted with due acknowledgement in your assignment report using the Harvard
Referencing System. For details of Harvard referencing style refer the student’s
hand book page 46-47 section7.2.
6.
This is an individual assignment and carries a 50%
weighting of the module grade.
7.
This assignment follows a report format (modify
according to the requirement of your assignment) and must be original and
creative. An analytical piece of work is required. The use of ‘cut and
paste’ approach will be penalized. It must be presented in a structured manner,
with appropriate cover page, content page, introduction, body (with appropriate
heading / sub-headings), conclusion, references, page numbered and any required
appendices.
8.
Your assignment should be word processed and professionally presented. The
length of your assignment should not exceed 2500 words (+/- 10%), presented in
text of font size 12 with 1.5 line spacing. Please state the exact word count
at the end of the assignment.
9.
The cover page should be attached with the assignment
and uploaded through MOVE (on-line. Name of the student, The Programme, Module
Title, Assignment Title and number of words must be reflected on the cover
sheet.
10. All
assignments must be adhered strictly to the deadlines specified by Majan
College. Failure to hand in the assignment for any reason and without prior
approval and a valid written extension from the module tutor will not be marked
and will be awarded a grade G (0) irrespective of the quality of the work. See
Student handbook page 16-17section 4.4.
11. Unacknowledged
use of work of others (plagiarism) is regarded as a dishonest practice and will
be will be penalized. See the penalties in the student’s handbook page 35-36
section 5.8.
Additional Guidelines
·
The Assignment Submission link on MOVE will be
open, a week ahead of the submission date.
·
You can submit your assignment multiple times,
till the submission deadline. Note that Turnitin could take up-to 24 hours to
produce similarity reports for submissions.
·
The last submission, within the deadline, will
be considered as your final submission.
·
Assignments should be submitted by 6pm on
the day of the deadline. There is a grace period until midnight to allow for
any technical difficulties, but any assignments submitted after this will
be counted as late. Technical problems will not be accepted as an excuse for
submitting after the day of the deadline.
·
You are required to tick to confirm the
statement: “I confirm that this assignment is my own and all sources
have been acknowledged. I understand that the use of other
people’s work or ideas without acknowledgement is plagiarism and could result
in failing the assignment”. You will not be able to submit
the assignment without ticking this box.
·
In a case of group work, it is recommended that
the group should identify a leader who can be responsible for uploading the
assignment on Turnitin and to share the feedback received from lecturers
with the group members.
·
The similarity percentage of your final
submission will be one of the factors considered, for assessing the originality
of your assignment. However, the decision to report an assignment for
plagiarism is taken by the Lecturers, who mark your assignment.
·
The Lecturers will consider a number of factors
such as Assignment type, Part of the assignment where similarity occurs, Nature
of similarity etc., along with the similarity percentage of
your assignment, to assess the originality of your assignment. Therefore,
similarity percentage would not be accepted as a basis for
disputing academic judgments regarding plagiarism.
·
Note that the similarity percentage of your
submission can change till the submission deadline, if the submissions of other
students have similarity to your assignment. Therefore, the similarity
percentages are not final, till the assignment submission is
closed.
·
GRADING
SYSTEM
Although grades may be awarded on the basis of marks
in some assessments, students should note that both marks and grades will be
awarded on the basis of the assessment criteria for each grade.
Old grading System (Before Feb 2015)
GRADE
|
GRADE
POINT
|
DESCRIPTION
|
GENERAL Assessment Criteria
|
A+
|
16
|
Excellent
|
·
An
outstanding piece of work.
·
Shows
evidence of wider reading and originality
·
Strongly
analytical. All important points are covered.
·
Arguments
should be supported by examples and evidence, objectively presented and
evaluated,
·
Well-structured
and well written, without noticeable grammatical or other errors.
·
Correctly
referenced
|
A
|
15
|
A-
|
14
|
B+
|
13
|
Very Good
|
·
Very
good work.
·
All
main points will have been covered, though minor issues may have been
omitted.
·
The
work will be analytical, balanced and soundly based.
·
Examples
and supporting evidence should have been included.
·
The
writing should be essentially correct, without major grammatical or other
errors.
·
Generally
referenced correctly.
|
B
|
12
|
B-
|
11
|
C+
|
10
|
Good
|
·
Generally
good work.
·
Most
points will have been covered, but many finer points will generally have been
missed.
·
Shows
limited reading.
·
Arguments/analysis
should be basically well structured and balanced with relevant examples, but
with errors and gaps.
·
The
writing is clear, but has errors that nevertheless do not obscure the
meaning.
·
Referencing
will be present but may at times be inaccurate or insufficient.
|
C
|
9
|
C-
|
8
|
D+
|
7
|
Pass
|
·
Satisfactory.
·
Shows
sufficient grasp of the subject to be acceptable.
·
Tends
to be descriptive.
·
Examples
and evidence is likely to be weak and limited.
·
Shows
limited reading.
·
Referencing
is likely to be absent or very poorly carried out.
|
D
|
6
|
D-
|
5
|
E
|
4
|
Refer
|
·
Unsatisfactory/
Compensatable fail.
·
Serious errors and omissions.
·
Very
little analysis
|
F
|
2
|
Fail
|
·
Work
of a very poor standard with little relevant information and/or serious
errors.
|
F-
|
1
|
·
Work
containing little of merit
|
G
|
0
|
·
No
work submitted
|
New
Grading System (Starting Feb. 2015)
Grade Letter
|
Mark Band %
|
Grade Descriptor
|
GENERAL Assessment Criteria
|
A+
|
80-100
|
Outstanding
|
P A S S
|
·
An
outstanding piece of work.
·
Shows
evidence of wider reading and originality
·
Strongly
analytical. All important points are covered.
·
Arguments
should be supported by examples and evidence, objectively presented and
evaluated,
·
Well-structured
and well written, without noticeable grammatical or other errors.
·
Correctly
referenced
|
A
|
75-79
|
Excellent
|
A-
|
70-74
|
B+
|
67-69
|
Commendable
|
·
Very
good work.
·
All
main points will have been covered, though minor issues may have been
omitted.
·
The
work will be analytical, balanced and soundly based.
·
Examples
and supporting evidence should have been included.
·
The
writing should be essentially correct, without major grammatical or other
errors.
·
Generally
referenced correctly
|
B
|
64-66
|
B-
|
60-63
|
C+
|
57-59
|
Good
|
·
Generally
good work.
·
Most
points will have been covered, but many finer points will generally have been
missed.
·
Shows
limited reading.
·
Arguments/analysis
should be basically well structured and balanced with relevant examples, but
with errors and gaps.
·
The
writing is clear, but has errors that nevertheless do not obscure the
meaning.
·
Referencing
will be present but may at times be inaccurate or insufficient.
|
C
|
54-56
|
C-
|
50-53
|
D+
|
47-49
|
Satisfactory
|
·
Satisfactory.
·
Shows
sufficient grasp of the subject to be acceptable.
·
Tends
to be descriptive.
·
Examples
and evidence is likely to be weak and limited.
·
Shows
limited reading.
·
Referencing
is likely to be absent or very poorly carried out.
|
D
|
44-46
|
D-
|
40-43
|
E
|
35-39
|
Marginal Fail
|
F A I L
|
·
Unsatisfactory/
Compensatable fail.
·
Serious
errors and omissions.
·
Very
little analysis
|
F
|
25-34
|
Fail
|
·
Work
of a very poor standard with little relevant information and/or serious
errors.
|
F-
|
01-24
|
Fail
|
·
Work
containing little of merit
|
G
|
0
|
Non-Submission
|
·
No
work submitted
|
