Advanced Management Accounting 222
ASSIGNMENT:
The submission is in the form of an individual numerical/written report. This should be written in a concise, formal business style using single spacing and font size 12. You are required to make use of headings, paragraphs and subsections as appropriate, and all work must be supported with research and referenced using the Harvard referencing system. Provide working notes wherever required. The document must be submitted to turnitin in word document. Please provide a bibliography using Harvard referencing system if you referred any sources for theoretical parts or questions. The numbers/numerical statements and calculations must be neatly/clearly shown so that the assessor assess the work of the learner appropriately.
L.O:1: Analyze the purpose for developing and presenting financial information
Task Summary
Management accountants look ahead – they focus on forecasting and decision-making. They use information to advise on how the business can move forward. Management accounting involves using the internal financial information available to managers, as well as that information which companies must publish by law. This contributes to forward planning, reviewing and analysing the performance of the business.
Scenario
P&S Ltd is a company manufacturing and selling wide range of industrial products to large number of businesses throughout the country. The company is listed on the stock exchange and the business is highly competitive and price sensitive. P&S Ltd is a locally owned business, with 1500 people working out of several locations around the region.
The company purchases numerous components from 250 local and regional suppliers through placing not less than 25000 orders per year. The company has plan to expand its business by investing on new manufacturing plant in a different location. This will enable P&S Ltd to create more jobs for the locals.
Actual financial data collected from the annual report of P&S Ltd for the year ended 31st December 2017 is as follows:
|
OMR |
|
|
LAND & BUILDING |
1,250,000 |
|
CASH |
500,000 |
|
SALES |
2,125,000 |
|
ACCOUNT RECEIVABLES |
2,550,000 |
|
ACCOUNT PAYABLE |
1,775,000 |
|
COST OF GOODS SOLD |
1,750,000 |
|
CLOSING STOCK |
500,000 |
|
PREPAID RENT |
25,000 |
|
RENT |
25,000 |
|
WAGES |
165,000 |
|
ACCRUED WAGES |
15,000 |
|
BANK OVERDRAFT |
75,000 |
|
PAID IN CAPITAL |
2,500,000 |
|
RETAIN EARNING AS AT 01/01/2017 |
275,000 |
As a Management Accountant a report need to be submitted covering the following questions;
Task 1
Analyse the purpose and presentation of financial information from the perspective of different stakeholders. (P1)
Task 2
Evaluate how and why financial information should be developed and appropriately presented to support financial planning and decision-making. (M1)
Task 3
Critically evaluate financial information supported by effective and appropriate judgements. (D1)
