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SUNDERLAND BUSINESS SCHOOL
Module Title: Strategic Management Accounting
Module Code: APC309
Individual assignment
Hand in Date:- 8
th 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 (rd (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.