Managerial Accounting

ACC520 Managerial Accounting, Semester 2, 2016/2017

Individual Assignment (10%) – Chapter 1

1

This assessment is prepared to test students on the following course learning objectives:

Skills Course Learning Outcomes Question number

Knowledge 1.1 Describe the management accounting information for decision making

Question 1

Cognitive Skills 2.1 Calculate product cost by adopting the job

costing, process costing and ABC costing systems in a complex business scenario

Question 2

Interpersonal Skills

And Responsibility

3.1 Evaluate ethical issues in management

accounting

Question 3

Guidelines in preparing your answers:

a) Your work should be typewritten, strictly following the rules below:

font Times New Roman, size 12, spacing 1.5

b) Number of pages varies according to your creativity, but not more than 6 pages.

c) Submission dead line is on 09.04.2017 (Sunday week 10).

d) You must submit your work via Turnitin on Moodle to check for plagisrism. A hardcopy

of the assignment should also be submitted to my office.

e) Policy for plagiarism is as follows:

Plagiarised work Deduction from marks

Below 15% No deduction

Between 16% to 25% 3%

25% above Maximum 5%

f) Your assignment cover page must contain the title of the assignment, course name and

course code, semester, your full name and student ID, submission date, name of instructor.

GOOD LUCK

ACC520 Managerial Accounting, Semester 2, 2016/2017

Individual Assignment (10%) – Chapter 1

2

QUESTION 1

Phoenix Smashers is a large company that manufactures all sorts of merchandises related to

badminton, such as badminton racket, badminton balls, badminton clothing and badminton shoes.

The company’s sales have been increasing steadily over the past 10 years.

The Racket Department

has recently implemented

several advanced

manufacturing techniques

which include the use of

robotic arms to hold the

rackets in place while the

glue dries and machine

vision systems check for

defects. The engineering

and design team uses

computerized drafting and

testing of new products.

The following managers work in the Racket Department:

Mr. Muhammad Aiman, Sales Manager (supervises all sales representatives)

Ms. Aliya Irdina, Technical Specialist (supervises computer programmers)

Mr. Mohamad Salini, Cost Accounting Manager (supervises cost accountants)

Mr. Irfan Daniel, Production Manager (supervises all manufacturing employees)

Ms. Aida Amani, Engineer (supervises all new-product design teams)

Instructions:

a) What are the primary information needs of each manager?

b) Which (if any) financial accounting report(s) is each manager likely to use?

c) Name one special-purpose management accounting report that could be designed for each

manager. Include the name of the report, the information it would contain and how frequently

it should be issued.

ACC520 Managerial Accounting, Semester 2, 2016/2017

Individual Assignment (10%) – Chapter 1

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QUESTION 2

Instructions:

Go to https://www.youtube.com/watch?v=3AKrzgUSsoA and view the video. Then answer the

following questions.

a) In point form, describe the step-by-step process to manufacture paintballs. What

departments are involved?

b) From your observation, identify all possible costs that the manufacturing company may incur

in the video and classify each of them into the following categories: materials, labor and

overhead.

c) From your answer in part b), which do you think would be the gr eatest cost in making the

paintballs?

d) Which is more suitable for the manufacturer to apply, the job order costing or the process

costing?

ACC520 Managerial Accounting, Semester 2, 2016/2017

Individual Assignment (10%) – Chapter 1

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QUESTION 3

Kilometrico, a producer of audio equipment for large computer systems, is reviewing its policies

as part of a biannual self-examination of the company. As part of this process, all managers have

been asked to carefully examine costs and determine as closely as possible which costs are direct

and which are indirect.

Ms. Minah Kilang and Mr. Mamat Gerumbal, managers of different manufacturing departments

in the same building, have been working together. They found the following four costs that could

be economically traced to the products, but have historically been a part of overhead:

 Cost of setting up the machinery for a different production run.

 Cost of minor assembly components such as knobs and switches.

 Cost of packaging, which is quite different for each model.

 Cost of inspecting and testing each model.

None of the costs is significant by itself, but together these four costs make up between 10 and

15% of the total cost of the product.

Minah favors "leaving well enough alone," as she puts it, and leaving these costs in overhead. She

is afraid that her volunteering to trace these costs will result in her having to trace many more costs

in the future.

Mamat, on the other hand, prefers to have the product cost as accurate as possible. He points out

that these costs are already known, and the process would require little extra work.

ACC520 Managerial Accounting, Semester 2, 2016/2017

Individual Assignment (10%) – Chapter 1

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Instruction:

You have been called on in your function as accounting manager to resolve the dispute between

Minah and Mamat. Write a memo, stating your opinion whether to support or not to support their

arguments. Be sure to adequately defend your position, but be brief.

- End of Assignment questions –