Re-Sit Course-Work Assignment

Weightage: 20%
Word Limit: 2000-2500 words (Font size: 12, Times New Roman, single space)
Marks Break-up:
A. Depth and breadth of the topics covered 80%
B. Reflections 20%
Total 100%
Topics to be covered
Identify one listed or unlisted company (preferably with personal contacts) and interview the
management accountant or an appropriate senior person to understand a minimum of five
management accounting practices used in the organization. If the first interview does not elicit
enough information, conduct follow-up interviews. Present a report which provides information
on at least five of the following issues:

1. Expense Items: What are the major expense items of the company? Which of these can
be categorized as fixed expenses and which ones can be categorized as variable
expenses? What types of expenses are included in overheads? How large is the overhead
costs in comparison to direct material and direct labour costs? How are these overheads
apportioned?
2. Contribution Margin vs Break-Even Point: Does the company consider the contribution
margin and break-even point when making decisions on sales forecasts? If the companys
sales substantially exceed break-even levels, does it consider the margin of safety when
making decisions? What other techniques do they use in their Cost-Volume-Profit
analysis? Sensitivity Analysis etc.?
3. Budgeting Process: What is type of the budgeting process is used in the organization?
Top to bottom or Bottom to Top? Budgeted time period? What kind of budgets cash,
production, sales, master etc.? Frequency? Variance Analysis?
4. Benchmarking: Does the company benchmark its costs with other organizations or with
industry averages? Does the company consider the standard costs of the products it
uses in manufacturing with industry norms and conduct variance analysis? Does the
concept of responsibility accounting exists or is used in the company? Are the incentives
of the production managers linked to the favorable variance they bring to the company?
5. Working Capital Management: How is the working capital management done in the
company?
6. Debtors: How does the company decide on the credit period to be allowed to
customers?
7. Creditors: What factors would the company consider when making decisions on credit
period required for purchases?
8. Cash Management: What is the cash management process used in the company? As in -
what amount of cash-in-hand is maintained at any point of time? What are the factors that
affect cash balances? Where does the company invest its excess funds? Any other
details?

Reflections:
I would be interested to know your opinions about this assignment. Did it help showcase your
experience to the person you interviewed? What was the learning from this assignment? How
differently you would prefer doing it, if you were asked to do the assignment again? Was the
assignment interesting? Do you have any other observations or suggestions?

Marking cretieria
70-100% marks will be awarded if the student is able to present well structured findings with
clear introduction and conclusion. Issues clearly identified; clear framework for organizing
discussion; appropriate discussions around the chosen areas selected. Evidence of wide reading
from many sources
50-70% marks for a well structured discussions with a clear introduction and conclusion. Some
issues identified and the content has logical flow. Uses some abstract principles and concepts
with limited applications to the discipline area when appropriate, Some evidence of critical
analysis with conclusions drawn
Fail - Dogmatic presentation of the interview with absolutely on reflection to be able to link it
with the underlying frameworks.