BUACC2613 MANAGEMENT ACCOUNTING : BUACC2613

BUACC 2613

MANAGEMENT ACCOUNTING

Semester 1, 2021

GROUP ASSIGNMENT

This assignment is worth 30% of your total mark. 

Submission is due at 11:30pm on 30^th May 2021. 

In this course, we have focused on developing your understanding of the elements of management accounting, which provides organisations with relevant cost-related information to assist with their planning, controlling and decision-making. You will examine the process of identifying, determining, classifying, analysing and allocating costs to products and services. This assignment gives you the opportunity to demonstrate and apply your understanding of product design and costing in a practical manner. 

We have acknowledged that the global business environment has been more competitive than ever before, especially in the rapid advancement of information technology and the unprecedented level of globalisation and financial market integration. To survive and prosper in such rapidly changing world, businesses must keep up the capacity to innovate products and services, and to manage resources effectively and efficiently  

This assignment requires your group (up to 3 members) to develop and design a product (not service) of your choice. It might be an existing product that your take on with necessary improvement OR a new product that does not exist in the market. You need to undertake R&D activities to determine the design, characteristics and functions of your product, calculate the related upstream and downstream costs, and provide an explanation as to why you want to produce this product. Then, you need to identify and determine your product’s production and downstream costs for 1,000 units manufactured. You also need to determine the price of your product and how it will be marketed. Finally, a presentation is required to provide information about your product and how your product can attract potential customers to make profit.

Please confirm your product in the google doc, which is available on the Moodle shell, by the end of week 7.

Required:

1. Design your product and provide it a name and a description and visual/picture of it (this can be your own drawing or an image from the internet with your brand/logo assigned to the image). Justify your choice by explaining in detail the reasons why you select your product (i.e. is there a demand for it? will it solve any social, environmental or financial issues? etc.). What is your vision for the selected product? 
2. Estimate the product’s Research and Development (R&D) and Design costs (as you will be undertaking the R&D, building a prototype, testing the product. You should assign yourself an hourly wage rate based on market research and keep a record of the activities and how many hours it took you to design your product. This will determine your R&D and Design costs). Provide detailed explanations about your R&D processes/steps and how the selected product is manufactured. 
3. Conduct a market research (i.e. search the internet, field research) to identify, estimate and determine the costs of your product’s direct materials, direct labour and manufacturing overhead (fixed and variable). Clearly list and determine how much and types of materials, labour and other manufacturing resources will be required to produce one unit of your product and calculate your product’s cost per unit. Explain the approach used to calculate the overhead cost per unit and clearly differentiate/list fixed and variable manufacturing overheads. 
4. Upon the nature of your product, in 100 words, identify and justify appropriate type of product costing procedure (job versus process costing, or combination). Please note that you must be consistent with your choice for costing the selected product in the following questions.

5.a.           During June, let’s suppose that the cost of your beginning inventory was $10,000 and ending inventory equalled $5,000, and you purchased materials to produce 1,000 units of your product. Calculate the cost of direct materials purchased and used in production in June. 

5.b.          During June, the cost of your beginning work in process was $5,000, and ending was $10,000. Calculate the cost of goods manufactured using a cost of goods manufactured statement/schedule (for 1,000 units of your product) in June.

5.c.           During June, the cost of your beginning finished goods was $20,000 and ending finished goods equalled $10,000. Prepare a cost of goods sold statement for the month of June for 1,000 units produced and sold to customers.

6. Conduct a market research to identify and estimate your downstream activities and the related costs (i.e. marketing, packaging, handling, storing, distribution and so forth). Explain how you will market and distribute your product in detail.
7. Determine the price of your product per unit and explain in detail how you determine the selling price (i.e. cost-plus or customer value-based pricing, see Pricing strategies (LangfieldSmith et al., 2018, p.967)).
8. Prepare an income statement (using absorption costing) for the month of June given that 1,000 units were sold. Your administrative expenses in June totalled $4,000, and the Australian company tax rate is 30%. Include all other relevant expenses for the month of June.
9. Work in group and use Kaltura Capture or Microsoft Teams to create an oral presentation clip with PowerPoint in 5 minutes to present the required information from the above questions (excluding questions 5 and 8). The required presentation’s purpose is to provide main reasons why your product has a potential market.

Please note the following:

• Required submissions: Report (word limit: 600 words per student in a group, excluding references and tables) + 5-minute Oral presentation clip
• Report format: using Word or PDF 

❖  Standard layout: The first page of your report should be a cover page with the subject code, your name and student ID number and the name of your product. The second page should be a table of contents. The body of the report will include the requirements above (1-9) and each requirement needs to be clearly numbered. The last page should include your reference list in alphabetical order. You need to include references for the resources you used and referred to as part of your market research to determine your products costs, price etc. The report needs to be page-numbered and presented in a professional and well-formatted manner. Please ensure to provide full and correct statement headings with month and year for the cost of goods manufactured statement, cost of goods sold statement and income statement. 

❖  Reference style: APA (please refer to the library resource if you need guidance with this referencing style via https://federation.edu.au/library/student-resources/fedcite). 

❖  The assignment is to comply with the University’s General Guide to Writing and Study Skills, General Guide to Referencing,and Assignment Layout and Appearance Guidelines, via the links below

http://federation.edu.au/__data/assets/pdf_file/0018/190044/General-Guide-to-Writing-andStudy-Skills.pdf

https://federation.edu.au/__data/assets/pdf_file/0020/313328/FedUni-General-Guide-toReferencing-2016ed.pdf

https://federation.edu.au/__data/assets/pdf_file/0017/190043/General-Guide-to-Layout-and-

Appearance.pdf

• 5-minute Oral presentation clip: Create the clip using Kaltura Video or MS Teams with PowerPoint slides and save the clip in “My media” in Moodle for submission. Please see the “How-To” document for creating and submitting a presentation video under Assessment 2 section in Moodle.
• This is a group assignment. Please make sure that your product is registered and technically different from other groups’ product.  
• Please make sure that name and ID number of all group members are stated on the cover sheet of your submission report. 
• Plagiarism and collusion are forms of cheating and are considered a serious academic misconduct, and severe penalties are associated with them. Please refer to the university policy for more information.

https://federation.edu.au/current-students/assistance-support-and-services/student-supportservices/student-advisory-service/misconduct/accused-of-plagiarism-or-misconduct 

• Turnitin: Students are strongly recommended to check originality through Turnitin, prior to submitting the final assessment. For more information about Turnitin and how to check for originality, refer to the following useful links:

https://fedflix.federation.edu.au/media/Uploading+to+Turnitin/0_irjuaw8p/74540772https://federation.edu.au/current-students/learning-and-study/online-help– with/plagiarismhttps://moodle.federation.edu.au/course/view.php?id=64539

• Penalties for late submission: The marking penalties will apply if you submit an assessment task after the due date without an approved extension: 5% will be deducted from available marks for each calendar day up to five days, and work that is submitted more than five days after the due date will not be marked. Requests for extension of time must be made with the lecturer concerned and based on Special Consideration guidelines. For further information on Discretionary Assessment Extensions and Special Consideration, including access to the policy, procedures or associated forms.

Submission Instruction:

This assignment is to be submitted online only. (You are not required to submit a hard copy)

The completed assignment must be submitted into the allocated area, Assignment Dropbox, on Moodle on or before the due date. Only one submission per group is required, i.e. only one student submits on behalf of all other group members.

Please do not attempt to submit multiple versions of your assignment work as this will cause high similarity in Turnitin report and may affect your final score.

You must keep a backup copy of every assignment you submit, until the marked assignment has been returned to you. In the unlikely event that one of your assignments is misplaced, you will need to submit your backup copy.

Any work you submit will be checked by Turtnitin for the purposes of detecting collusion and/or plagiarism.

Assessment Feedback:

Students who submit their work by the due date will receive their marks and feedback on Moodle within 15 working days of the assignment submission due date.

Marking Rubric, Dispute Resolution and Free Riders:

Marking Rubric is available in Moodle as a formal guideline for the expected outcomes of the assignment requirements above. 

The marking will be done for the group not on individual basis. Each group member is awarded the same mark.

Working in groups has its pros and cons. It is beneficial that you can learn a lot by discussing the issues with your fellow students. Invariably different group members bring different skills to a project; it is up to you to make the best of it. If you find your group members are “not pulling their weight” or there are problems with any member’s commitment, please try to resolve those issues amongst yourselves. Open and honest communication always helps.

If you are unable to resolve these issues, you are most welcome to see your lecturer and tutor. We will try to sort out the problems together. Do this as soon as possible and certainly before the due date. In case of any dispute among the group members or if there are any free riders identified in the group, members should report to your lecturer in writing.

Reference

Langfield-Smith, K., Smith, D., Andon, P. Hilton & Thorne, H. . (2018). Management

Accounting: Information for Creating and Managing Value, 8th edn. McGraw-Hill Australia.

ISBN: 9781760420406(pbk)