Manac Plc Essay

The assignment Background information You be the financial theater director of a large, ficticious family called Manac plc, which fixs and sells a range of standard electrical goods. outturn and gross revenue take place across a number of countries. The company uses standard costing and absorption costing as part of its sexual climax to strategical management method of invoice. The Board of Directors is concerned that the company is not confrontation its budgeted target profits the managing director takes the simple view that more sales mean more profits and that the products have not been priced to sell in sufficient numbers.While you are aware that this is a possibility you secernate that the real reason for the lower than expected profits may be more complex. You have therefore decided to conduct a full moon retread of variances to identify those areas which have not met budgeted expectations. Assignment Requirements While this review is underway and to improve the b oard of directors understanding of the issues involved, you have decided to produce a written delineate to the board of directors which addresses the following 3 topics i. The models and concepts affecting the price decisions taken by organisations, critically reflecting upon their usefulness (maximum mark 33%). i. The exercise of standard costing and variance analysis 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 conception (maximum mark 33%). iii. The advantages and disadvantages of introducing an Activity Based Costing system to tack 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 heed to the company and use numerical examples to illustrate the models and concepts t hat you propose to adopt The University insurance on cheating collusion and plagiarism will be utilize to this piece of work. Guidance Students are encouraged to be inquisitive and advance(a) in their approach as to what should be included in this report the following may be of some use in providing counsellor 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 demonstrated in practice by a large, externalistic company. This will include investigating topics from throughout the course linked to the supra issues. Some of the principles, concepts ad models will be more relevant to your chosen approach than others and so it is likely that divers(prenominal) students will formulate different approaches to the problems. This is normal, it is not expected that all of the course content will be employ in the analysis, concentrate on that whi ch you feel is most important.As part of your work you might find it helpful to briefly search the underlying theory behind the key areas of investigation that you identify in the lead 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 penning to a sophisticated audience who has a working knowledge of strategic management accounting and is well versed in business theory. numeral 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 induction to support your findings from your other analysis of position 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 define text. It is your own logical, evaluation of the situation, the interpretation of course material and presentation, with critical analysis , of a coherent strategic plan that will attract high marks. target 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 specific analytical skills in key areas within management accounting at local and international level