HNBS 109 Management Accounting Costing And Budgeting Spring 2015 Essay

Submitted By vilialex
Words: 1436
Pages: 6

INTERNAL VERIFICATION
Assignment Brief

FORM D1
Programme:

HNC/HND in BUSINESS Pathways

Unit Code/Title

HNBS 109 Management accounting costing and budgeting

Unit Credits/ level
Tutor:
Internal Verifier
Academic year

Credits 15

QCF LEVEL: 4

M Sajid
F Khan
2014/2015

Individual



Group

Assessment
Number

Issue date: 09/02/2015
Interim Submission Deadline: 29th March 2015
Final Submission Deadline: 24th May 2015
Guidelines for Assignment Submission
a. The assignment has 4 Tasks. Please read these carefully
b. The Interim submission will be for Tasks 1 and 2 and will cover LO1 and
LO2 of the module.
c. The Final submission will cover ALL TASKS and Learning outcomes of the assignment
d. The Merit and Distinction criteria will also apply to the Interim Submission.
e. The Interim grade will contribute to the overall grade.
f. The attendance percentage and participation in class tutorials will contribute towards the achievement of Distinction grade.
g. Both the interim and final assignments must be submitted on time to be considered for a Distinction grade
h. PLAGIARISM is considered a serious offence and will automatically lead to a
FAIL grade. In the event of similar/identical submissions, please
i. note that both students will automatically fail the module
j. When IPADS/TABLETS/MACS are used please make sure documents are saved as .doc or .pdf otherwise submission will not be valid and considered as a non-submission

Scenario: Answer these questions in different tasks as per the instructions
Task 1 [covers learning outcomes 1 and all assessment criteria]
1. Explain different types of costs and different costing methods.
2. How costs of goods sold is calculated in a manufacturing organization?
Explain with the help of an illustration.
3. Calculate the cost with the given set of data:
In the following illustration, assume that G. Chemical Company had a beginning inventory balance that consisted of 4,000 units costing $12 per unit. Purchases and sales are shown in the schedule. Assume that the company conducted a

1

physical count of inventory and confirmed that 5,000 units were actually on hand at the end of the year. Calculate the amount of gross profit and value of ending inventory in the following condition if (a) LIFO (b) FIFO and (c) weighted average method if applied

Task 2 [covers learning outcomes 2 and all assessment criteria]
1. Prepare a cost report for your selected organization and analyze the report. 2. How potential improvements can be suggested by means of performance indicators?
3. Explain the concept of value for money and suggest some methods of cost reduction, enhancing value and quality.
4. Z Company, a wholesaler of large, custom-built air conditioning units for commercial buildings, has noticed considerable fluctuation in its shipping expense from month to month, as shown below:

Month
January
February
March
April
May
June
July

Units shipped
4
7
5
2
3
6
10

Total shipping expense
$ 2,200
$ 3,100
$ 2,600
$ 1,500
$ 2,200
$ 3,000
$ 4,200

Required:
1. Using the high-low method, estimate a cost formula for shipping expenses
2. The president has no confidence in the high-low method and would like you to check out your results using a scatter graph. Do the following:
a. Prepare a scatter graph, using the data above.
b. Using the graph, estimate the approximate variable cost per unit shipped and the approximate fixed cost per month with the quick and dirty method.

Task 3 [covers learning outcomes 3 and all assessment criteria]
1. What is the purpose and nature of budgeting?
2. Select two organizations from different sectors and suggest the budgeting process to be used in them with its pros and cons?
3. From the given set of data, prepare a cash budget with. These are the information given for Calgon Products, a distributor of organic beverages.

A). the cash balance at the beginning of September is $ 11,000.
B). actual sales for July and expected sales for September are as follows:
July
August…