Cost and Management Accounting Assignment
This assessment item assesses the following learning outcomes:
Knowledge and Technical Skills (KS) - Demonstrate and apply integrated and advanced discipline and professional practice knowledge, including knowledge of relevant research principles and methods.
Higher Order Thinking Skills (HO) - Critically investigate real world business issues and problems drawing on analysis, evaluation and synthesis of discipline knowledge, including theory and practice.
Professional Communication (PC) - Use information literacy skills and communicate effectively and professionally in written forms and using media appropriate for diverse purposes, contexts and audiences.
Teamwork & Self (TS) - Exercise self-reflection and accountability in applying knowledge and skills for own learning and effective practice.
Apple & Foxconn
You are a management accounting working at Apple. Your manager, Lucy Zhang, has asked you to gather information on the profitability of one of the factories that manufacture iPhones. Foxconn is considering the financial implications of moving the manufacture and assembly from one of its small factories in China to the U.S. The management of Apple is having a meeting with Foxconn - Apple's current contracted manufacturer in one week and they need some high-level numbers to take to the meeting on the financial consequences of moving the manufacturing and assembly process to the U.S state of Wisconsin. You have been given some information from Foxconn on the costs of manufacture/assembly but this is not in the detail that you would have preferred. Your boss can't wait for the detailed costs from Foxconn and needs some general figures to guide their initial discussions and has told you to make your own judgements where you are missing figures. She has also said these costs are from a small Chinese factory that has just started manufacturing in the last couple of months. You will have to make some professional judgements where you do not have all the information you need.
TASK - Lucy Zhangyour boss at Apple has asked you to provide her with a report on Foxconn's current business profitability and improvement ideas. You are required to:
PART A -
(1) Analyse the profitability of the three products. In order to do this you will need to:
a. Calculate the total gross profit for EACH phone then the total gross profit of the three products. Indicate which product is the most profitable;
b. Calculate the contribution margin per unit for each of the three;
(2) Analyse the profitability of the Foxconn factory. In order to do this you will need to:
a. Calculate the break-even point in units and dollars, assuming the current sales mix;
b. Calculate the number of phones that need to be sold in order to achieve a target operating profit for Foxconn of $150,000 (assuming the current sales mix);
PART B -
In July 2017 Foxconn announced it would build a factory in Wisconsin, United States to produce flat-screen displays. It is now considering whether it should also move some or all of its iPhone manufacturing to the US. You need to write a report that will provide an answer to the following questions:
(1) Should Foxconn move some or all of its iPhone manufacture to the United States? Consider the costs and benefits of moving manufacturing from China to the US. These will only be estimates of the costs and benefits for Foxconn/Apple of doing this. You can rely on the figures you have calculated as the basis of this report.
(2) What other qualitative factors are going to be important in making this decision? You should also consider what changes are being made in manufacturing and what implications this will have on future manufacturing costs for iPhones.
PART C -
A successful accounting professional uses the idea of self-reflection to improve their skills in the workplace. Reflecting on your experience of completing this assignment, write a self-reflection that puts into writing your learning experiences. You should think about the following questions to help you in this task:
1. What processes did you use to complete the assignment? That is, HOW did you go about answering these questions?
2. What exactly helped or got in the way of you being able to complete your assignment?
For example, did you feel like you had a sound knowledge base of the key topics before your started or did this assignment show you how much you had not grasped?
3. What parts really presented problems for you? For example, did you get really stuck - what did you do at these times? For example, sought help from fellow students/study group, looked at different text books? (while this is an individual assignment and your final work must be your own you can discuss your problems/ideas with classmates however make sure you do NOT hand in anything other than your own work).
4. How much time did you take to complete the assignment - was this more or less than you expected? Has your time management for this assignment been successful? How could you improve next time?
5. What have you learnt doing this assignment and what would you do differently next time?
References: Horngren, C.T., Datar, S.M., Rajan, M.V., Wynder, M., Maguire, W. & Tan, R. (2014). Cost Accounting: A Managerial Emphasis (2nd ed.). Frenchs Forest, NSW: Pearson Australia.
Attachment:- Assignment File.rar