Accounting for Decision Makers MBA7001

Module Code

Module Title

MBA7001

Accounting for Decision Makers

Academic Year

Semester

2024/2025

1 , 2 & 3

Module Leader email

mhamdan@cardiffmet.ac.uk

Assessment title

Abr.

Weighting

Accounting for Decision Makers Assignment 2

WRIT2

70%

Pass marks are 40% for undergraduate work and 50% for postgraduate work unless stated otherwise.

Task/assessment brief:

Section A (20 marks)

Question 1 (20 marks)

A- The double-entry system in financial accounting is a fundamental concept that ensures accuracy and balance in financial records. It operates on the principle that every financial transaction affects at least two accounts, maintaining the accounting equation: Assets = Liabilities + Equity. You need to demonstrate your understanding of the double-entry concept using an exercise you need to create. Your exercise should contain a brief of 6 different transactions conducted by your company allocated to you in WRIT1 then you need to provide the double entry working of each of those 6 transactions.

(12 marks)

B- There are few types of businesses and limited company is one of those types. You need to discuss three of the advantages and three of disadvantages of trading as a limited company.

(8 marks)

Section B Choose two out of 3 (50 marks)

Question 2 (25 marks)

Planning and control (budgeting) practice can be defined as the processes that organisations use to prepare, manage, and regulate their financial plans. It helps align resources with goals, monitor performance, and ensure financial accountability

A- Using the information published by your company (assigned to you in WRIT1) in its annual report, you need to write a summary about what your company has been aiming to achieve/has achieved in the last few years as a part of its strategic plan. Your report should be written in line with the steps of planning and control practices.

(10 marks)

B- As a consultant of your own company, suggest aim(s) for it in achieve in the incoming few years then explain the 7 steps of planning and control it needs to follow for purpose of achieving those aims.

(15 marks)

Question 3 (25 marks)

You are in the process of starting a manufacturing business which specialises in two products. Your business must supply tangible products e.g., a coffee shop or a fast-food restaurant, and should produce these products from a few ingredients and not be a retailer.

Required:

For the first year of operation:

Forecast the quarterly sales in units and money (they should be different for each quarter) for every product.

(2 marks)

Identify and forecast at least 4 variable cost items per unit for each of your chosen products.

(2 marks)

Identify and forecast at least 7 items of fixed cost related to the business.

(3.5 marks)

Calculate both the number of units (to the nearest unit) and the revenue the company needs to break-even using the marginal costing system for each product.

(3 marks)

Note: Allocate the fixed cost to the two products equally (50?ch)

1. Calculate the annual margin of safety expressed as a percentage, and as number of units based on the forecasted sales in 1 for each product.

(4 mark)

2. Prepare the annual marginal costing income statement based on your budgeted sales volume for each product.

(6 marks)

3. Make a comparison between the two products and recommend which is better in terms of breakeven analysis with supporting comments.

(4.5 marks)

Note: All the compiled numbers of your business must be reasonable and financially feasible (based on your choice of industry) and must be in Sterling.

Question 4 (25 marks)

A- As a part of investment appraisal process, a business should identify all relevant and non-relevant costs associated with the investment projects. Comment on this statement by explaining the three conditions should be met to consider an item of cost as relevant with an example to demonstrate the concept.

(4 marks)

B- There are various methods can be used for appraising investment projects, the Net Present Value (NPV) and Internal Rate of Return (IRR) are of the main methods used by firms. You need to:

B1- Demonstrate your understanding of the calculation of the NPV and IRR methods using an exercise which you need to create. Your exercise should be about any capital expenditure (investment project) with 5 years of expected life, has different annual cash flows, has residual value, and requires working capital for running.

(13 marks)

B2- There is another project with NPV of 263,374 and 18.892% IRR, you need to use your answer in B1 to discuss which project should be undertaken. In your discussion, you should define both methods, state the advantages and disadvantages of the two methods and the reasons for selecting one of the projects in terms of the two methods.

(8 marks)

Note:

For the written part of your answer to the questions above, you need to reference your work using high quality academic sources of information and the Harvard referencing system.

Word count (or equivalent):

2,800 words

Academic or technical terms explained:

Artificial Intelligence Models Guidance for this assessment:

Artificial Intelligence (AI) models can be a powerful tool to support your learning. The University has provided some resources to support you in its appropriate usage:

• Library Services AI Hub

• Student Guide to AI and Assessment

• Code of Conduct for Students on the use of AI

• Cite Them Right resource on citing materials relating to AI (if permitted)

As per the academic regulations (Academic Handbook Ah1_08), in all cases you must submit work that is your own, acknowledging any part of it that has been informed by another source including that which is AI generated. Upon submission of work, you will be asked to confirm the following statement:

I confirm that this assignment is my own work, except where I have acknowledged the use of works from other sources, including the use of any artificial intelligence (AI) tools, in accordance with what is allowable as described in the assessment brief.

Please note the following:

• AI should not be used as a substitute for your own knowledge, and you should never include any material that you do not understand and could not explain if asked.

• Not being able to explain your work when asked is likely to be a key factor when considering cases of academic misconduct related to AI.

The following information provides specific guidance for this assessment about what level of AI use is appropriate for this assessment. Remember that in all cases you must submit work that is your own, acknowledging any part of it that has been provided by another source.

Staff note Please place a tick mark (?) in the appropriate box below. No Use is selected by default.

Submission Deadline:

22^nd May 2025

Estimated Feedback

Return Date

19^th June 2025

Submission

Time:

By 3.00pm on the deadline day.

Moodle/Turnitin:

Any assessments submitted after the deadline will not be marked and will be recorded as a non-attempt unless you have had an extension request agreed or have approved mitigating circumstances. See the School Moodle pages for more information on extensions and mitigating circumstances.

File Format:

The assessment must be submitted as a pdf document (save the document as a pdf in your software) and submit through the Turnitin submission point in Moodle.

Your assessment should be titled with your:

student ID number, module code and assessment ID,

e.g. st12345678 BHL5007 WRIT1

Feedback

Feedback for the assessment will be provided electronically via Moodle. Feedback will be provided with comments on your strengths and the areas which you can improve. View the guidance on how to access your feedback.

All marks are provisional and are subject to quality assurance processes and confirmation at the programme Examination Board.

Learning outcomes assessed

The student will be able to:

Demonstrate the application of investment appraisal methods and discuss the attributes of each of the methods.

Explain the budgeting process and the interlinking of the various budgets within the business.

Demonstrate the application of double-entry concept in financial accounting and the attributes of limited companies as one of the important types of businesses.

Distinguish between fixed cost and variable cost and use this distinction to explain the relationship between cost, volume and profit.

Other skills/attributes developed

This includes elements of the Cardiff Met EDGE (Ethical, Digital, Global and Entrepreneurial skills) and other attributes developed in students through the completion of the module and assessment. These will also be highlighted in the module guidance, which should be read by all students completing the module. Assessments are not just a way of auditing student knowledge. They are a process which provides additional learning and development through the preparation for and completion of the assessment.

Improving academic writing skills

Practicing on applying academic referencing system.

Marking/Assessment Criteria

Marking Criteria

This range of marks represents the level of attainment commensurate with the award of a Bachelors degree with Honours. The range is subdivided into the following bands:

70%-100%

60% 69%

50% 59%

40% 49%

Below 40%

First Class Category: 70%-79%

This band of marks represents the level of attainment commensurate with the award of a Bachelors degree with Honours: first class. In the work presented for assessment, students awarded marks/grades within this band will have demonstrated a full and detailed understanding of the set task and an ability to have met the learning outcomes and address the assessment criteria at a very good level.

Within the assessment submission the student:

1. demonstrates a detailed knowledge and systematic understanding of key aspects of the field of accounting statements. There is strong evidence of an ability to extend, transform and apply such knowledge to the brief set with a high level of detail and accuracy. No inaccuracies found and the task fully answered.

2. demonstrates a high level of presentation standard and the format appropriate. Key points are logically organised.

3. demonstrates and applies perceptively and with insight on the relationship between theory and practice.

4. appropriately, and sometimes innovatively, offers solutions to problems. There is strong evidence that the student is able to reflect effectively on her/his own practice.

Upper Second Class Category: 60%-69%

This band of marks represents the level of attainment commensurate with the award of a Bachelors degree with Honours: upper second class. In the work presented for assessment, students awarded marks/grades within this band will have demonstrated a full understanding of the set task and an ability to have met the learning outcomes and address the assessment criteria at a good level.

Within the assessment submission the student:

1. demonstrates a detailed knowledge and thorough understanding of key aspects of the field of accounting statements. There is clear evidence of an ability to apply such knowledge to the brief set with a high level of detail and accuracy. Few inaccuracies found and the task fully answered.

2. demonstrates a very good level of presentation standard and the format appropriate. Key points are appropriately organised.

3. demonstrates a thorough knowledge of the relationship between theory and practice.

4. Appropriately offers solutions to problems. There is clear evidence that the student is able to reflect effectively on her/his own practice.

Lower Second Class Category: 50%-59%

This band of marks represents the level of attainment commensurate with the award of a Bachelors degree with Honours: lower second class. In the work presented for assessment, students awarded grades within this band will have demonstrated a secure understanding of the set task and an ability to have met the associated learning outcomes and address the assessment criteria at a satisfactory level.

Within the assessment submission the student:

1. demonstrates a sound knowledge and understanding of key aspects of the field of accounting statements. There is evidence of an ability to apply such knowledge to the brief set with a moderate level of detail and accuracy. A few inaccuracies found and the task not fully answered but overall key elements completed.

2. generally demonstrates a good level of presentation and the structure appropriate. Key points are appropriately organised.

3. generally demonstrates a thorough knowledge of the relationship between information, ideas and concepts.

4. At times, offers solutions to problems. There is some evidence that the student is able to reflect effectively on her/his own practice but future development may be underestimated.

Third Class Category: 40%-49%

This band of marks represents the level of attainment commensurate with the award of a Bachelors degree with Honours: third class. In the work presented for assessment, students awarded marks within this band will have demonstrated a basic understanding of the set task and an ability to have met the associated learning outcomes and address the assessment criteria at a threshold level.

Within the assessment submission the student:

1. demonstrates a basic knowledge and understanding of many aspects of the field of accounting statements. There is evidence of an ability to apply such knowledge to the brief set with a low level of detail and accuracy. Inaccuracies found and the task not fully answered but overall some elements completed.

2. demonstrates some level of presentation and structure. Key points are not appropriately organised or structured.

3. generally demonstrates an ability and knowledge of information, ideas and concepts.

4. Offers a limited amount of solutions to problems. There is some evidence that the student is able to reflect effectively on her/his own practice but future development may be underestimated or not considered.

Fail (1%-39%): Overview

This range of marks represents levels of attainment that fall below the standard required to pass a Bachelors degree.

This band of marks reflects a level of attainment that falls below the standard required to pass a Bachelors degree. The work presented for assessment is unsatisfactory overall. At the top end of the band, the standard of work might best be described as a narrow fail. Students awarded marks within this band will have demonstrated partial understanding of the set task and an ability to have met some of the associated learning outcomes at a basic level. However, attainment is uneven with some learning outcomes not met and some assessment criteria unaddressed.