Module: Strategic Management Accounting
APC 309
MARKING GUIDE
Question Part a.
Organisations need to know the cost of products or services they provide for a variety of decision making situations. Critically evaluate the following three approaches to costing products or services.
- Marginal or variable costing
- Full or Absorption costing
- Activity based costing (ABC)
For each approach identify one managerial decision making situation where your preferred approach is more appropriate than the other two and justify why you have chosen that approach over the other two approaches in a particular decision making situation.
The students should be able to demonstrate that they have read understand and can apply some of the contents of Chapter 2, Chapter 7 and Chapter 8 of Drury and Unit 3 of the Module pack.
Extra marks should be awarded to students who demonstrate evidence of having read widely around the subject and integrated this reading into their submission.
It is important that students critically evaluate each approach rather than merely describe each approach. It is also important the students choose appropriate decision making situations and can justify their preferred approach whilst also comparing the other approaches.
Question Part b.
‘’Standard costing and Variance analysis are appropriate to any type and size of organisation’’. Critically evaluate this statement, indicating whether you agree with the statement or not.
Students should be able to demonstrate that they have read, understood and can apply some of the contents of Chapter 10 and Chapter 11 of the Drury core text book and Unit 7 of the Module Pack.
Extra marks should be awarded to students who demonstrate evidence of having read widely around the subject and integrated this reading into their submission.
It is important that students critically evaluate the statement, rather than merely describe standard costing and variance analysis.
It is also important that students reach a conclusion as to whether they agree with the statement or not, and that this conclusion emanates from the earlier parts of the assignment.
Answers to the questions ought to include academic references and these should be properly referenced.
Whilst there is no set format for a report, it would be reasonable to expect:
A contents page
A very brief Introduction to the aims of the report
A separate section covering each of the two questions
A very short set of conclusions and recommendations
A bibliography/reference list
Any appendices
Indicative reading list:
The core text book: Drury, C. (2009) Management Accounting For Business (4th Edition), Cengage Learning.
Atrill, P and McLaney, E. (2012) Management Accounting for Decision Makers (7th Edition), Financial Times Press.
Brierly, J, C Cowton, and C Drury (2006) ‘A Comparison of Product Costing Practices in Discrete-part and Assembly Manufacturing and Continuous Production Process Manufacturing’, International Journal of Production Economics, 100-(2), 312-21.
Drury, C (2012) Management and Cost Accounting, (8th Edition) London: Cengage Learning.
Dugdale, D., Jones, T.C. and Green, S. (2006) Contemporary Management Accounting Practices in UK Manufacturing Companies, Chartered Institute of Management Accountants.
Horngren C, Datar S, and Foster G (2011), Cost Accounting, A Managerial Emphasis, 14th Edition Prentice Hall International
Kaplan, R.S. and Cooper, R, (1998) Cost and Effect: Using Integrated Systems to Drive Profitability and Performance, Harvard Business School Press.
Proctor, R. (2012) Management Accounting-Decision Making and Performance Management, (4th Edition), Pearson Education Limited
Other sources of information:
The authors referenced in the core text book pages 409-412.
The authors referenced in the Module Pack pages 220-221
Other, similar Management Accounting textbooks in the library
Accounting Journals in the library
The internet (limited use only) -the main emphasis is on recognised academic text books – the use of Wikipedia is not acceptable–
Please also note there are instances of later or earlier editions of the books listed which can be used with in most cases equal worth in particular where access is difficult for the editions specified. Some of the above books/journals are also available in electronic format.
Use the order calculator below and get started! Contact our live support team for any assistance or inquiry.
[order_calculator]