Reference no: EM132711048
BUSS23002 Management Accounting For Business - Middle East College
Learning Outcome 1: Understand and apply techniques relevant for short term decision making in a business context.
Learning Outcome 2: Identify the importance of behavioral aspects in management accounting, in relation to budgeting and delivery of strategies.
Assignment Objective
To know the understanding of students for both learning outcomes to apply techniques during short term decisions in business context and importance of behavioral aspects in management accounting in relation to budgeting and delivery of strategies.
Assignment Tasks
Part I - Proposal
1) Submit a work proposal for this assignment
• General overview of proposed plan - initial understanding of solution to task2.
• Timeline for completion of the given tasks.
PART-II
Q.1 G.L. Traders LLC is providing the following information. You are required to prepare cash forecast for the period of 6 months from July to December 2020 All amounts in Rials.
|
Month
|
Sales
|
Rent
|
Marketing Expenses
|
Salari es
|
Administrative Expenses
|
|
July
|
50,000
|
4,000
|
3,000
|
5,000
|
2,000
|
|
August
|
60,000
|
6,000
|
4,000
|
2,000
|
3,000
|
|
September
|
70,000
|
6,000
|
7,000
|
6,000
|
3,000
|
|
October
|
80,000
|
4,000
|
6,000
|
6,000
|
4,000
|
|
November
|
90,000
|
6,000
|
3,000
|
6,000
|
7,000
|
|
December
|
100,000
|
6,000
|
4,000
|
4,000
|
3,000
|
Additional information:
a) Cash sales 50% and the balance in the following month.
b) Commission received RO 10,000 in the month of November.
c) Sale of Fixed Assets in the month of December for RO 3,000
d) Purchase of Printing Machine in September RO 70,000
e) Interest payment to bank RO 50,000 in the month of October
f) All other expenses are paid on the 1st of next month You are required to
A. Prepare Cash Budget for the period of 6 months from July to December 2020.
B. Budget plays an important role for any business decisions and forecasting. Explain this statement with appropriate literature review.
Q.2 Al Rahma Technologies has two investment plan and company manager would like to take appropriate decision for investing capital so company can be able to get initial investment amount as earliest. The initial investment and expected profit are given below:
|
Year
|
Project-A (RO)
|
Project B (RO)
|
|
Initial Outlay
|
300,000
|
500,000
|
|
1
|
175,000
|
70,000
|
|
2
|
140,000
|
140,000
|
|
3
|
35,000
|
175,000
|
|
4
|
105,000
|
215,000
|
|
5
|
10,000
|
260,000
|
a. You are requested to assess the projects using payback period method and suggest the management on the selection of the project.
b. On the basis of above analysis, manager would like to know about the limitation of PBP method (100-150 words,2 reference)
Q.3 Gulf medical equipment company is providing its product to different countries. More number of medical equipment are required by UAE, Bahrain and Qatar. Managing director evaluated the company production capacity and decided to provide medical equipment to only any one country from where they can earn maximum profit. On the basis of below information, calculate the profit can be earn from each country. Consider variable cost is rial 1.50 per unit and fixed cost is rial 50000.
|
|
UAE
|
Bahrain
|
Qatar
|
|
|
|
|
|
Sales Per Unit (currency in
oman rial)
|
4.00
|
5.00
|
3.00
|
|
Estimated Sales per year
(units)
|
2, 00, 000
|
1, 50, 000
|
3,00,000
|
|
Selling and distribution
Overheads (Per Unit)
|
0.50
|
1.00
|
1.00
|
You are required
(a) In which country company should sale its product and why. Calculate profit for all three country.
(b) Provide suggestions and recommendations based on analysis. (word count: 80 words,)
Q.4 The Balance Scorecard approach involves setting objectives and developing appropriate measures and targets in four main areas. Explain all main areas of Balance Scorecard Approach with appropriate graph and citations.
Q.5 Complete your Online Course (MOOC) and write the reflection of course. Completion certificate should be attached at last.
Attachment:- Management Accounting For Business Decision.rar