A case study for Bagalot Plc company in (management and measurement performance) accounting and cost
The assignment assesses your ability to:
a? Use a number of different management accounting techniques to analyse and
solve problems developed within a case study setting
a? Present written information in report format in a structured, succinct and clear
1. Discuss whether Bagalot should change its existing cost system in either the
Bristol plant and/or the Bath plant? Give reasons for your recommendations.
2. Calculate the cost of a briefcase1, the designer label*203 and a wallet using
the cost study conclusions.
3. Compare and contrast the profitability of each briefcase under the new and old
systems. Based on your recomputed product costs, what actions would you
recommend the company consider in order to enhance its profitability?
Discuss what additional information would you like to have to make these
4. Discuss how Bagalot should account for the excess capacity created to
produce the holiday beach bags? Qualitatively, how will this impact your
calculated cost of the briefcase1 and the Designer label briefcases in question
number 2? Explain your method and its impact. (Answer qualitatively. DO
NOT recompute any of your product costs from question 2).
5. Give explanations for the difference between forecasted and actual revenue for
the Bristol plant during June 2008. Discuss what other information would be
useful to help explain the difference?
6. Recommend Bagalot produce the satchel stating your reasons. (Ignore
manufacturing overhead costs including packaging, shipping and receiving
and production control).
7. Briefly discuss how the techniques of Activity Based Costing and Activity
Based Management can be used in service industries.
The report should be word processed and not be more than 3,000 words excluding
appendices. Harvard system of referencing should be used.