AC3200 Advanced Management Accounting.
Coursework Resit 2016-17:
Aim
To build upon the intermediate level knowledge and skills acquired in AC2200 Management Accounting. Students will apply their problem solving skills to more complex problems in management accounting and will develop the ability to critically apply management accounting solutions to realistic problems.
Trasco plc is an international food and clothes retailer with current turnover levels of £30bn. They have the following extract financial data:
| Total
£ m | Europe (includes UK) £ m | North America £ m | Africa
£m | Asia (includes China) £m | |
| Sales 2014 | 30 000 | 14 000 | 5 000 | 4 000 | 7 000 |
| Sales 2004 | 22 000 | 12 000 | 4 500 | 2 500 | 3 000 |
| Capital 2014 | 41 000 | 20 000 | 10 000 | 6 000 | 5 000 |
| Capital 2004 | 27 000 | 14 000 | 8 000 | 2 000 | 3 000 |
| Net Profit 2014 | 2 500 | 800 | 300 | 500 | 900 |
| Net Profit 2004 | 1 800 | 1 100 | 200 | 300 | 200 |
| Staff levels 2014 | 120 000 | 85 000 | 5 000 | 10 000 | 20 000 |
| Staff levels 2004 | 93 000 | 80 000 | 4 000 | 3 000 | 6 000 |
| Stores 2014 | 1 200 | 600 | 100 | 300 | 200 |
| Stores 2004 | 830 | 550 | 100 | 100 | 80 |
The board of five directors has met to discuss their expansion plans for the next 10 years taking them to 2024. The chairman Sir Dickie Battenberg and chief executive Michaela Flatteringly have different views on expansion: Sir Dickie wants to increase the number of UK shops and expand mostly in the UK, Michaela would like to predominantly develop the Asian and African parts of the business. Sir Dickie wants to continue using the ‘functionalist’ divisionalisation structure whilst Michaela would like a more self-managed geographically split structure. There are also unsure of the performance related pay strategies they could use to motivate staff having discussed ROCE and RI measurement approaches. The firm uses an expected return on capital of 10%.
Required:
- Evaluate the financial information of Trasco plc and divisionalised growth over the last ten years (based on the extracted financial data – do use calculated figures to support points made);
mark 20%
- Explain which types of responsibility, cost, profit or investment centres you would recommend as being most appropriate for Trasco plc; mark 10%
- Critically evaluate the possible use of the financial performance measures ‘return on capital employed’ and ‘residual income’ for the decentralized structure of Trasco plc; mark 30%
- Discuss the proposed alternative expansion plans and any issues that need to be considered in relation to the two distinct approaches. mark 30%
- Supported by further reading/research mark 10%
Word count guide: 2000 +/- 10%.
Date issued: 26 January 2017 Due: 28 February 2017
Please submit via email by 9am – cakelsall@uclan.ac.uk
The University operates a universal penalty scale for unauthorised late submission of any form of assessed work. Students who submit work within 5 working days after the published submission date without an authorised extension will obtain a maximum mark of 40% for that element of assessment.
All work submitted later than 5 working days after the published submission date will be awarded a mark of 0%.
AC3200 Advanced Management Acconting
Coursework number 1.
Rational for mark awarded.
In order to assess your coursework it has been benchmarked against the work of other
students using the guidelines below.
In order to maintain consistency of marking, a sample of work has been:
- Internally moderated, and
- Copied for External Examiner review. Marks awarded are subject to the external
examiner’s ratification
I have been guided in my assessment by the following:
Assessment criteria, with weightings:
The assessment criteria (as specified on the coursework requirement)
Discussion of financial performance in decentralized structure.
20% E G A S I
Discussion of responsibility, cost and investment centres.
10% E G A S I
Critical evaluation of financial performance measures.
30% E G A S I
Discussion of the issues that need to be considered in expansion plans.
30% E G A S I
Supported by evidence of further reading
10% E G A S I
Key to the coding notation.
E = Excellent (70%) G = Good (60%) A = Average (50%)
S = Satisfactory (40%) I = Inadequate (<40%)
