Manac Plc Essay Example for Free

Manac Plc proveThe assignment Background information You are the financial director of a large, ficticious fellowship called Manac plc, which produces and sells a get down of standard electrical goods. Production and sales take place across a number of countries. The confederacy uses standard costing and absorption costing as part of its cost to strategic management accounting. The senesce of Directors is concerned that the company is not meeting its budgeted target win the managing director takes the simple view that much sales mean more profits and that the products chip in not been priced to sell in sufficient numbers. objet dart you are aware that this is a possibility you recognise that the real reason for the lower than expected profits may be more complex. You have therefore decided to conduct a full refreshen of variants to identify those areas which have not met budgeted expectations. Assignment Requirements While this review is under expression and to impro ve the board of directors accord of the issues involved, you have decided to produce a report to the board of directors which addresses the following 3 topics i. The models and concepts affecting the set decisions taken by organisations, critically reflecting upon their usefulness (maximum trade name 33%). i. The role of standard costing and variance compend in management accounting and a critically discussion of the value and limitations of variance analysis as a means of identifying key areas which have contributed to the overall profit figure (maximum mark 33%). iii. The advantages and disadvantages of introducing an Activity Based Costing system to replace the current Absorption Costing system (maximum mark 34%). The report should include critical evaluation of the models and concepts proposed outlining their merits and limitations.You may incorporate logical assumptions with regard to the company and use numerical examples to illustrate the models and concepts that you prop ose to adopt The University policy on cheating collusion and buccaneering will be applied to this piece of work. Guidance Students are encouraged to be inquisitive and ripe 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 ssignment is to help you understand how key areas of strategic management accounting are show in practice by a large, international company. This will include investigating topics from throughout the tune 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 melodic phrase 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 pot 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 train 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 place 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 exposition of course material and presentation, with critical analysis, of a coherent strategic plan that will attract lavishly mark s. 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. . Critically understand of special(prenominal) analytical skills in key areas within management accounting at local and international aim