Assignment Task: Sustainable Success and Planning through Management Accounting Practices
Course Learning Outcomes:
A) Explain the use of planning tools used in management accounting
B) Compare ways in which organisations could use management accounting to respond to financial problems
Business Scenario:
Newpath Textiles manufactures fabric for the clothing industry. Newpath Textiles customers are just prominent companies such as ZARA, GAP, and LACOSTE. Newpath Textiles does not operate for fringe companies in the market. Newpath Textiles operates in Turkey, the emerging market country in which there are so many factors affect the national economy and the demand level for all goods and services. Fluctuations in Turkish Lira exchange rate and complicated geopolitical conditions are the most important factors that affect the demand level on ZARA, GAP, and LACOSTE products. In order to make the right decisions regarding the future, top managers in Newpath Textiles depend on different budgeting types, different costing systems, different pricing strategies, and different strategic planning tools such as SWOT, PEST, and Balanced Scorecards. They also depend on analyzing tools to analyze the markets such as Porter's Five Forces. On the other hand, Newpath Textiles must overcome some financial problem such as:
1) Lack of liquidity: sometimes Newpath Textiles experiences high level of profits but at the same times has a cash problem because top managers adopt credit selling strategy (selling on account) and they accept paying cash for raw materials purchases!! They argue that paying in cash helps the company earn valuable discounts on purchases.
2) Changing demand level: sometimes Newpath Textiles experiences good times in which the demand level increases beyond top managers' expectations, while in others, demand level decreases causing excess inventory costs.
3) Changing exchange rate of Turkish lira: which affects the costs of machines, direct and indirect manufacturing materials.
Considering this related operation data:
- Sales proposal for the budget period are:
Budget selling price for a unit of fabric is $100 and budget sales quantity is 10,000 units
- Direct Labour and cost estimates
- Direct materials usage and cost estimates per unit of fabric produce are:
- Inventories for the next year: Starting 1 January and ending 31 December are estimated as follows
Job/role scenario:
You work for Newpath Textiles as a Management Accountant who is responsible for preparing budgets and using effective planning tools that help the company overcome financial problems and achieve sustainable success.
Assignment Brief:
Prepare a report in which you will:
1) Prepare the following budgets for the year ending 31 December 2018:
- Sales and production budget.
- Direct material budget.
- Direct labor budget.
2) Explain the advantages and disadvantages of different types of planning tools (the previous budgets included) that can be used for budgetary control for Newpath Textiles.
3) Analyze the use of different planning tools (the previous budgets included) and their application for preparing and forecasting budgets for Newpath Textiles.
4) Compare how Newpath Textiles can adapt management accounting systems to respond to financial problems.
5) Evaluate and analyze how planning tools for accounting respond appropriately to solving financial problems to lead Newpath Textiles to sustainable success.
Are you too a student, pursuing your degree program from the above-mentioned course and often find yourself in trouble while dealing with the academic tasks, then you must approach our Management Accounting Assignment Help service for enhancing your academic grades.
Tags: Management Accounting Assignment Help, Management Accounting Homework Help, Management Accounting Coursework, Management Accounting Solved Assignments, Sales and Production Budget Assignment Help, Sales and Production Budget Homework Help, Direct Material Budget Assignment Help, Direct Material Budget Homework Help, Direct Labor Budget Assignment Help, Direct Labor Budget Homework Help
Attachment:- Management Accounting Practices.rar