Re traditional management accounting techniques still useful with the modern business environment?
Scenario: You have been appointed as the management accountant and you quickly establish the company is still using traditional management accounting techniques such as standard costing, variance analysis and incremental budgets. Having recently qualified in the CIMA examinations, you are aware of newer techniques and you have decided to prepare a report for presentation to the board to highlight your concern that the traditional techniques are adversely affecting planning, decision making and control. The report should discussthe following topics:
1. A brief explanation of advanced manufacturing technology.
2. An explanation why standard costing and variance analysis could give a misleading measure of performance.
3. The advantages of introducing Activity Based Budgeting (when compared to the current method of budgeting).
Specific Marking Criteria:
1. STUDENTS MUST DEMONSTRATE:
a) a good understanding of AMT (10%)
B) a good understanding of Activity Based Budgeting (25%)
c) That a level of basic research has been undertaken (20%)
d) Identify the variances you believe are less relevant than previously, i.e. pre AMT.
2. PRESENTATION OF ASSIGNMENT:
clarity and communication, comprehensiveness, style (15%).
What am I looking for?
1. A report format to, from, introduction, content, etc.
2. A solid conclusion.
3. A professional presentation spacing, grammer, expression, sub-heading etc.
4. Referencing a demonstration that some form of basic reasearch has taken place.
5. Correct style of referencing.
6. A minimum font size of 12.
7. Word count 2000 words
8. The word count MUST be shown.
9. The Universitys official front sheet must be used.
Drury, C., Management and Cost Accountancy.
Horngren C.T and Bhimari A, Management and Cost Accounting.Weetman, P (2006)Management Accounting, Ft Prentice Hall. Plus any other suitable books and other sources.