UNIVERSITY OF CENTRAL LANCASHIRE
LANCASHIRE BUSINESS SCHOOL.
College of Business, Law and Applied Social Studies.
AC3200 Advanced Management Accounting.
Coursework One 2016-17:
Aim
To build upon the intermediate level knowledge and skills acquired in AC2200 Management Accounting. Students will apply their problem solving skills to more complex problems in management accounting and will develop the ability to critically apply management accounting solutions to realistic problems.
Wingdart inc. are an American based global supermarket chain, selling groceries, beverages, clothes and electrical items. Ten years ago the firm’s sales were solely in the US (65%) and Europe (35%). They now have stores and sales on a global basis in America, Europe, Asia and Africa. Extracted financial results are shown (y/e 30 September) in the table below.
$ billion America Europe Asia Africa
Sales $ 2016 5.4 3.6 2.4 0.6
Sales $ 2015 5.5 3.52 1.65 0.33
Sales $ 2006 4.55 2.45
Costs $ 2016 4.8 3.2 1.6 0.4
Costs $ 2015 4.41 3.06 1.26 0.27
Costs $ 2006 3.5 1.5
Inv’t $ 2016 104 32 25 8
Inv’t $ 2015 100 30 20 5
Inv’t $ 2006 75 25
Sales and costs are in $ billion. The Inv’t (Investment) is the actual net asset value in $ of investment in the stores.
The firm operate on the basis of a depreciation charge of 5% – this has been included in the cost figures. The expected return (on assets) for similar businesses is 3%.
Wingdart inc. operates on the basis of four separate divisions: America and Europe are considered as investment centres; Asia is viewed as a profit centre; Africa is viewed as a cost centre.
You are to create a report to the Board of Directors covering the following issues:
Required:
1. Calculate and evaluate the comparative financial performance of the four centres and implications for Wingdart inc. as a whole. mark 20%
2. Evaluate relevant performance measures for Wingdart inc., including those calculated in Q1, and comment on risk issues. mark 20%
3. Evaluate the implications of Wingdart inc. using investment, profit and cost centres. Use your findings in Q1 and 2 to inform the discussion. mark 25%
4. Critically evaluate other the issues for Wingdart inc. in operating as a global firm, including: decentralisation and centralisation; performance measurement; motivation and PRP. mark 25%
5. Report format, presentation and use of referencing and research. mark 10%
Word count guide: 2000 +/- 10%.
Date issued: Due: Monday 12th December 2016
Please submit via Turnitin by 9am.
The University operates a universal penalty scale for unauthorised late submission of any form of assessed work. Students who submit work within 5 working days after the published submission date without an authorised extension will obtain a maximum mark of 40% for that element of assessment.
All work submitted later than 5 working days after the published submission date will be awarded a mark of 0%.
AC3200 Advanced Management Acconting
Coursework 2016-17.
Rational for mark awarded.
In order to assess your coursework it has been benchmarked against the work of other
students using the guidelines below.
In order to maintain consistency of marking, a sample of work has been:
1. Internally moderated, and
2. Copied for External Examiner review. Marks awarded are subject to the external
examiner’s ratification
I have been guided in my assessment by the following:
Assessment criteria, with weightings:
The assessment criteria (as specified on the coursework requirement)
Calculation and evaluate financial performance of four centres and implications for Wingdart inc
20% E G A S I
Evaluate relevant performance measures, including those worked out in Q1, and comment on risk issues.
20% E G A S I
Evaluation of implications for Wingdart inc. of using investment, profit and cost centres.
25% E G A S I
Critical evaluation of issues for globalised firms including: decentralisation and centralisation; performance measures; motivation and PRP.
25% E G A S I
Report format, presentation and references and research.
10% E G A S I
Key to the coding notation.
E = Excellent (70%) G = Good (60%) A = Average (50%)
S = Satisfactory (40%) I = Inadequate (<40%)
