University Centre Colchester
Program: BTEC (RQF) Higher National Certificate/Diploma in Business
Unit Name and Reference: Unit 5 - Management Accounting H/508/0489
Assignment Title - Management Accounting Systems and Techniques
Learning Outcome 1: Demonstrate an understanding of management accounting systems
Learning Outcome 2: Apply a range of management accounting techniques
Assignment Brief and Guidance:
Question 1. Define management accounting and discuss the role of a management accountant in an organisation
Question 2. Demonstrate in detail the scope of the role of management accounting and the part it plays within each function of the business
Question 3. Examine the key differences between a management accountant and financial accountant whilst at the same time exploring any areas where the two disciplines may overlap.
Question 4. Examine the different types of cost reports that are produced in management accounting, highlighting the differences between each type of cost reporting and evaluating the benefits of each report.
Explore other types of reports that may be produced by management accountants and evaluate the benefitsto a business of these different types of report, including adding value to the organisation and how these feed into the achievement of organisational objectives.
Please include in your discussion:
• Job costing
• Batch Costing
• Inventory Costing (make sure you discuss methods to reduce cost of stock)
• Activity based costing (make sure this includes direct, indirect, fixed and semi variable costing)
Question 5. Calculateand produce an income statement using both marginal and absorption costing techniques using figures of your own making. Provide a written text to explain why an organisation may use one technique over another.
Question 6. Produce a worked example of how break-even analysis works and provide a written explanation as to why break-even analysis is important to the organisation.
Question 7. Show a worked example of net profit calculation and provide an explanationas to why net profit calculation is important to role of the management accountant and how this calculation is used within the organisation to drive other organisational objectives. For example, investment decisions.
LO1 Demonstrate an understanding of management accounting systems
P1 Explain management accounting and give the essential requirements of different types of management accounting systems
P2 Explain different methods used for management accounting reporting
M1 Evaluate the benefits of management accounting systems and their application within an organisational context.
D1 Critically evaluate how management accounting systems and management accounting reporting is integrated within organisational processes.
LO2 Apply a range of management accounting techniques
P3 Calculate costs using appropriate techniques of cost analysis to prepare an income statement using marginal and absorption costing.
M2 Accurately apply a range of management accounting techniques and produce appropriate financial reporting techniques
D2 Produce financial reports that accurately apply and interpret data for a range of business activities.