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APC 309Canvas & JIRA Deadline: Thursday 27 May at 2pmIndividual assignmentGeneral InformationWeighting – 100% of the marks for this moduleThis is an individual assignment limited to 3,000 words (+or- 10%), excluding thereference list, bibliography and any appendices. The word count MUST beshown on the front cover of the assignment. Note: see quality Handbook RefAQH-F15 Guidance for students on the penalty for exceeding the limit forassessed work.All of the learning outcomes for the module are being assessed in thisassignment. The learning outcomes are shown in the section entitled “MarkingGuide”, which is further on in this document.The University’s policy on cheating collusion and plagiarism will be applied tothis piece of work.The assignment has three questions. Only two of the three questions should beanswered each question carries the same maximum mark.THE FRONT COVER OF YOUR ASSIGNMENT MUST SHOW:1) YOUR NAME;2) YOUR STUDENT REGISTRATION NUMBER;3) THE WORD COUNT (excluding the reference list and bibliography and anyappendices)The assignment has three questions only two should be answered. Eachquestion carries the same maximum mark.Assignment RequirementsYou are required to answer two of the following three questions, each question isworth 50% of the marks:Question 1Gemini plc manufactures four products using the same machinery. The following details relate toits products:Product A£ per unitProduct B£ per unitProduct C£ per unitProduct D£ per unitSelling price 28 34 45 46Direct material 6 7 9 7Direct labour 5 5 10 10Variable overhead 3 3 6 6Fixed overhead * 8 8 16 16Profit 6 11 4 7Labour hours 1 1 2 2Machine hours 4 3 4 5Units Units Units UnitsMaximum demand per week 200 180 250 100*Absorbed based on budgeted labour hours of 1000 per week.There is a maximum of 2000 machine hours available per week.Requirement:(a) Determine the production plan which will maximize the weekly profit ofGeminiplcand prepare a profitstatement showing the profit your plan will yield.25 marks(b) The marketing director ofGemini plc is concerned at the company’s inability to meet the quantitydemanded by itscustomers. One consideration to overcome this is to increase the number of hoursworked using the existing machinery by working overtime. Such overtime would be paid at apremium of 50% above normal labour rates, and variable overhead costs would be expectedto increase in proportion to labour costs.Requirement:Critically evaluate this strategy and state your findings (quantitative and qualitative) as to theexpected increase in contribution (if any) and discuss any issues (in particular in regard toovertime working) that could arise and would need to be resolved.25 marks Total 50 marksQuestion 2Companies have found that offering discounts to customers in return for early payment canbe counterproductive in terms of the resulting adverse effect on profitability. This is when thereduction in profitability outweighs any marginal improvements gained from the benefit of areduction in the working capital requirement.a) Given the above critically discuss the alternative measures to offering discounts tocustomers that could prove more effective in reducing the working capitalrequirement for a company with only minimal potential reductions in profitability.25 marksb) Critically evaluate the methods that can be adopted to manage and achieve theefficient control of inventories and gain the resulting benefits for improving cashflow and ultimately profit in a business.25 marks Total 50 marksQuestion 3Many organisations use transfer pricing when transferring products between differentdivisions of the same organisation. You are required to critically discuss the advantages anddisadvantages of two of the following methods:1) Market based transfer prices;2) Full cost transfer prices;3) Marginal/variable cost transfer prices;4) Cost-plus a mark-up transfer prices; and5) Negotiated transfer prices.Choose any two of the above five transfer pricing methods: (a) The first chosen method(b) The second chosen method25 marks25 marks Total 50 marks The report should include critical evaluation of the models and concepts proposed outliningtheir merits and limitations. You may incorporate logical assumptions with regard to thecompany and use numerical examples to illustrate the models and concepts that you proposeto adoptThe University policy on cheating collusion and plagiarism will be applied to this piece ofwork.Guidance:Students are encouraged to be inquisitive and innovative in their approach as to what shouldbe included in this report the following may be of some use in providing guidance as to whatcould possibly be included, although this is in no way meant to be prescriptive.The aim of the assignment is to help you understand how key areas of strategic managementaccounting are demonstrated in practice by large, international companies. This will includeinvestigating topics from throughout the course linked to the above issues. Some of theprinciples, concepts ad models will be more relevant to your chosen approach than others andso it is likely that different students will formulate different approaches to the problems. Thisis normal, it is not expected that all of the course 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 behindthe 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 assumeyou are writing to a sophisticated audience who has a working knowledge of strategicmanagement accounting and is well versed in business theory. Numerical examples forillustrative purposes may be of use but should not be the main thrust of the work. If usedthey should be to provide evidence to support your findings from your other analysis ofposition and policies. If other sources are used remember to reference everything!Please avoid relying too heavily on descriptive sections reproducing information availablefrom course material or the set text. It is your own logical, evaluation of the situation, theinterpretation of course material and presentation, with critical analysis, of a coherentstrategic plan that will attract high marks.Marking GuideThe learning outcomes for this module assessed by this piece of work are:Knowledge1. A Critical understanding of a range of key strategic management accounting models andconcepts.2. A Critical understanding of the strategic role of management accounting at local andinternational level3. A Critical understanding of the merits and limitations of management accounting theory.Skills4. How to apply the key management accounting concepts and methodologies in order tocontribute to successful decision making in an organisation.In light of this the assessment criteria in the grid below will be used when assessing yourwork.APC 309 Assignment Generic Assessment CriteriaGeneric Assessment Criteria – Undergraduate Bachelor’s degree CategoriesGradeRelevance Knowledge Analysis Argument and Structure Critical Evaluation Presentation Reference to Literature86 –The work examined is exemplary and provides clear evidence of a complete grasp of the knowledge, understanding and skills appropriate to the Level of the qualification. There is also unequivocal evidence showingthat all the learning outcomes and responsibilities appropriate to that Level are fully satisfied. At this level it is expected that the work will be exemplary in all the categories cited above. It will demonstrate a particularlycompelling evaluation, originality, and elegance of argument, interpretation or discourse.100%76-85%The work examined is excellent and demonstrates comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also excellent evidence showing that all the learningoutcomes and responsibilities appropriate to that level are fully satisfied. At this level it is expected that the work will be excellent in the majority of the categories cited above or by demonstrating particularly compellingevaluation and elegance of argument, interpretation or discourse and there may be some evidence of originalityThe work examined is of a high standard and there is evidence of comprehensive knowledge, understanding and skills appropriate to the Level of the qualification. There is also clearly articulated t evidencedemonstrating that all the learning outcomes and responsibilities appropriate to that level are satisfied At this level it is expected that the standard of the work will be high in the majority of the categories cited aboveor by demonstrating particularly compelling evaluation and elegance of argument, interpretation or discourse.70 –75%60 –69%Directly relevant to therequirements of theassessmentA substantial knowledgeof relevant material,showing a clear grasp ofthemes, questions andissues thereinGood analysis, clearand orderlyGenerally coherent and logicallystructured, using an appropriatemode of argument and/ortheoretical mode(s)May contain some distinctiveor independent thinking; maybegin to formulate anindependent position inrelation to theory and/orpractice.Well written, with standardspelling and grammar, in areadable style withacceptable formatCritical appraisal of up-to-dateand/or appropriate literature.Recognition of differentperspectives. Very good use ofsource material. Uses a range ofsourcesPassSome attempt toAdequate knowledge of afair range of relevantmaterial, with intermittentevidence of anappreciation of itssignificanceSome analyticalSome attempt to constructSound work whichCompetentlyUses a variety of literature whichincludes some recent texts and/orappropriate literature, though notnecessarily including a substantiveamount beyond library texts.Competent use of sourcematerial.50 –59%address thetreatment, buta coherent argument, butexpresses a coherentwritten, with onlyrequirements ofmay be prone tomay suffer loss of focusposition only in broadminor lapses fromthe assessment: may driftawaydescription, or tonarrative, whichand consistency, with issues atstake stated onlyterms and in uncriticalconformity to one orstandard grammar, withacceptablefrom this in lesslacks clearvaguely, or theoreticalmore standard viewsformatfocused passagesanalyticalpurposemode(s) couched in simplistictermsof the topic40 –49%Some correlation with therequirements of theassessment but there areinstances of irrelevanceBasic understanding of thesubject but addressing alimited range of materialLargely descriptive ornarrative, with littleevidence of analysisA basic argument is evident, butmainly supported by assertion andthere may be a lack of clarity andcoherenceSome evidence of a viewstarting to be formed butmainly derivative.A simple basic style butwith significantdeficiencies in expressionor format that may poseobstacles for the readerSome up-to-date and/orappropriate literature used. Goesbeyond the material tutor hasprovided. Limited use of sources tosupport a point.Fail35 –39%Relevance to theA limitedHeavyLittle evidence of coherentAlmost whollyNumerousBarely adequate use of literature.Over reliance on material providedby the tutor.requirements ofunderstanding of adependence onargument: lacksderivative: the writer’sdeficiencies inthe assessmentmay be verynarrow range of materialdescription,and/or ondevelopment and may be repetitiveor thincontribution rarelygoes beyondexpression andpresentation; theintermittent, and maybe reduced to itsvaguest and leastchallenging termsparaphrase, is commonsimplifyingparaphrasewriter may achieveclarity (if at all) only byusing a simplistic orrepetitious styleThe evidence provided shows that the majority of the learning outcomes and responsibilities appropriate to that Level are satisfied – for compensation consideration. 30 –34%The work examined provides insufficient evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence provided shows that some of the learning outcomes andresponsibilities appropriate to that Level are satisfied. The work will be weak in some of the indicators. 15-29%The work examined is unacceptable and provides little evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence shows that few of the learning outcomesand responsibilities appropriate to that Level are satisfied. The work will be weak in several of the indicators.0-14%The work examined is unacceptable and provides almost no evidence of the knowledge, understanding and skills appropriate to the Level of the qualification. The evidence fails to show that any of the learningoutcomes and responsibilities appropriate to that Level are satisfied. The work will be weak in the majority or all of the indicators.