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SUNDERLAND BUSINESS SCHOOL

Module Title: Strategic Management Accounting

Module Code: APC309

Individual assignment Hand in Date:- 8th April 2013 General Information Weighting – 100% of the marks for this module This is an individual assignment of 3,000 words (+/-10%), excluding appendices and bibliography. The word count MUST be shown on the front of the assignment. There are TWO questions to be answered in this assignment. Each question carries a maximum mark of 50%. All of the learning outcomes for the module are being assessed in this assignment. The learning outcomes are shown in the section entitled “Marking Guide”, which is further on in this document. The University’s policy on cheating collusion and plagiarism will be applied to this piece of work. You are required to produce a report which answers the following TWO questions: Question 1 You have been asked to advise two entirely different businesses about the benefits and problems associated with what is termed the “traditional approach to budgeting and budgetary control”. One of the businesses operates in a very stable and static market place, where there is little change in either products or demand year on year, whereas the other business operates in a very dynamic, rapidly changing, innovative environment. If your findings suggest that the traditional approach is inappropriate for one or both of the businesses, please suggest and discuss some alternative approaches. The “traditional approach” typically involves the following processes:

a) Development of assumptions and plans about the factors influencing next year’s budget in advance of the budget year starting;

b) Approval of the budget before the commencement of the budget year; c) Once the budget year has started, there are monthly comparison reports

which compares budget and actual performance on both a monthly and cumulative basis;

d) Action being taken (where necessary) to correct large variances or differences.

Question 2 XYZ Limited is a medium sized manufacturing business which makes and sells products to a range of industrial customers who use XYZ’s products in their own products. The working capital of XYZ is typical of a manufacturing organisation in that at any point in time they have cash, trade receivables, inventories of raw materials,

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work in progress and finished goods and trade payables. The Managing Director of XYZ Limited believes that all parts of the working capital cycle could be improved and has asked you to produce a report which discusses how each part of the working capital cycle could be improved and which critically evaluates the implications of the improvements on XYZ and other connected parties (for example trade receivables and trade payables).

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Guidance:

Students are encouraged to be inquisitive and innovative in their approach as to what

should be included in this report. The following may be of some use in providing

guidance as to what could possibly be included, although this is in no way meant to

be prescriptive.

The aim of the assignment is to help you understand how key areas of strategic

management accounting are applied in practice. This will include investigating topics

from throughout the course linked to the above issues. Some of the principles,

concepts ad models will be more relevant to your chosen approach than others and so

it is likely that different students will formulate different approaches to the problems.

This is normal - it is not expected that all of the course content will be used in the

analysis - concentrate on that which you feel is most important.

As part of your work you might find it helpful to briefly explore the underlying theory

behind the key areas of investigation that you identify before applying them to report.

With a total of 3,000 words you do not have a lot of room for long introductions so

assume you are writing to a sophisticated audience who has a working knowledge of

strategic management accounting and is well versed in business theory. Numerical

example for illustrative purposes may be of use but should not be the main thrust of

the work. If used they should be to provide evidence to support your findings from

your other analysis of position and policies. If other sources are used remember to

reference everything!

Please avoid relying too heavily on descriptive sections reproducing information

available from course material or the set text. It is your own logical, evaluation of the

situation, the interpretation of course material and presentation, with critical analysis,

of a coherent strategic plan that will attract high marks.

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Marking Guide

The learning outcomes for this module assessed by this piece of work are

Knowledge

1. Critically evaluate a range of key strategic management accounting models and

concepts.

2. Critically understand of specific analytical skills in key areas within management

accounting at local and international level

3. Critically understand of the role and limitations of management accounting theory.

Skills

4. Applied the key management accounting concepts and methodologies in order to

contribute to successful decision making in an organisation.

In light of this the assessment criteria in the grid below will be used when assessing

your work.

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ASSESSMENT CRITERIA

Criteria Fail (<34) Fail (35-39) 3rd (40-49) 2:2 (50-59) 2:1 (69-69) Ist (70+)

Knowledge of relevant concepts

and issues

Fails to identify the majority of

the concepts relevant to the

question or introduces topics

that are not relevant. The

ordering of the concepts

indicates a lack of

understanding of key concepts.

Fails to identify the majority

of the concepts relevant to

the question. Those concepts

that are used are misapplied.

The ordering of the concepts

is in appropriate.

Identifies some of the key

concepts, but not all o f

them, or displays an in

correct understanding of

some of the concepts

discussed. The ordering of

the concepts may be adhoc.

Identifies and utilises some of

the key concepts relevant to the

question. Uses some of the

concepts, but not always in an

appropriate context. The work is

ordered appropriately

Identifies the majority of the

key concepts relevant to the

question and uses them in an

appropriate context. Orders and

structures them in a logical

sequence

Identifies all of the key concepts

relevant to the question and uses

them in an appropriate context.

The material is structured to

show significant understanding

of the key issues.

Depth of understanding and

extent of critical evaluation

(including evidence of wider

reading)

The student has failed to address

the question set or appears to

have answered a different

question to that set. There is no

evidence of any reading. No key

issues identified.

There is no evaluation of the

validity of the sources used

or the work is based on one

key source. Inappropriate

sources are used

extensively. There is no

evidence of appropriate

wider reading. No reflection

on key issues.

There is some evaluation of

the materials used in the

work. The work is based on

a limited number of

appropriate sources.

Little reflection on key

issues.

Good evaluation of materials

used, with discernment obvious

as to key sources. The work is

based on a number of

appropriate sources. Some

reflection on key issues.

Good evaluation of all

key/important sources materials

used. The work is based on a

wide range of appropriate

sources. Good reflection on key

issues.

The work is set in a context

where wider reading and

appreciation of the context is

obvious. The material included

is relevant to the topic and

appropriate in addressing the

key issues identified in the

assignment

Evidence of appropriate analysis The student fails to draw any

relationships from the material

used or the student is incorrect

in the relationships that they

draw.

The student draws one or

two basic relationships from

the material used, but then

subsequently misapply these

concepts.

The student draws one or

two basic relationships from

the material used, but fails

to identify other important

relationships. There may be

some evidence they have not

clearly understood all of the

material they have presented

The student draws some limited

relationships from the material

used. There might be minor

issues where the student is

incorrect in the assertions that

they make, but overall they

demonstrate appropriate

analysis.

The student starts to

demonstrate they understand the

key relationships from the

material used. There are no

substantive errors in their

analysis.

All the key connections are

drawn between materials from

different sources. The student

makes no substantive errors in

their analysis and reflects upon

the key issues identified in their

analysis.

Ability to synthesise relevant

material from a range of sources

The student fails to use any

appropriate sources. There is

extensive repetition of notes

given out in class.

The student uses just a few

non-academic sources of

information or the material

used is inappropriate for UG

level study. They quote

verbatim extensively from

one or two sources. They

use quotations incorrectly to

support an argument.

The student uses a few

sources of information or

the material used is

inappropriate for UG level

study. Extensive verbatim

quotes are used as a

replacement for the students

own work.

The student may be limited in

their use of academic sources

such as journals and books, but

there is evidence that they have

attempted to access a range of

sources including non-academic

ones.

The student has accessed a

range of academic sources such

as journals and books, and also

appropriate non-academic ones.

Verbatim quotes are used to

enhance the arguments being

developed rather than as a

replacement for the students

own work.

The student has accessed a wide

range of appropriate sources.

They make reference to a wide

range of material in their work.

Verbatim quotes are used from a

range of sources to illustrate and

support the arguments being

developed, but without

becoming a substitute for the

students own work.

Structure and clarity of

presentation.

The work has no coherent

structure. The work is littered

with spelling and typographical

errors. Very poor use of English.

Where appropriate tables/graphs

are not used. Referencing is

poor or non-existent.

The work is poorly

organised, and structured.

There are many spelling and

typographical errors. Poor

use of English. Where

appropriate tables/graphs are

not used. Referencing is

patchy and incomplete.

The work is poorly

structured. There are

spelling and typographical

errors. Poor use of English.

Where appropriate

tables/graphs are not used

appropriately. Some of the

referencing is incomplete

The work has a clear structure

and generally a logical

progression. Occasional

typographical and spelling

errors. Some use of

tables/graphs is made where

appropriate.

The work has overall a coherent

structure and a clear and logical

progression. Very few

typographical and spelling

errors. Good use of

tables/graphs is made where

appropriate.

The work is well structured with

clearly defined objectives that

are achieved. Typographical and

spelling errors are rare.

Excellent use of tables/graphs is

made where appropriate.