Task: 1 Cost Accounting: Cost Accounting is the branch of accounting which works on the cost activities of the organizations to find out what is the actual cost of an activity, what should be the cost of an activity, how to improve performance so that cost can be minimized and overall cost management of the organization. (Hansen, Mowen, and Guan, 2007) Managerial Accounting: Management accounting is the branch of accounting which identifies, analyzes and communicates information with the management to take decisions that help to achieve organization’s goal. (Hansen, Mowen, and Guan, 2007) Cost accounting is a part of managerial accounting. Sometimes cost accounting is named as managerial accounting. Financial Accounting: Financial Accounting works on past transactions of an organization to find out the impact of these transactions on the organization’s overall condition at the end of certain time period. Financial accounting calculates the profit or loss from the financial activities of the organization and shows the overall asset, liability and ownership condition of an organization. (Hansen, Mowen, and Guan, 2007) There are subtle differences among these three types of the accounting process. Financial accounting is the necessary part of the accounting process that each and every organization has to follow. Using financial accounting process organizations communicates its overall financial position and the result of economic activities of a financial year to its stakeholders. (Weetman and IVONNE, 2013) On the other hand, cost accounting and managerial accounting are not mandatory to be followed by the organizations. Organizations usually use these accounting procedures for management purpose, and they don’t usually dispose of these accounts. Besides, the financial accounting procedures are based on past transactions, but management accounting and cost accounting are generally futuristic analysis. Organizations use cost and managerial accounting processes to develop the operating performance of the organization. Cost accounting and managerial accounting are vastly related to one another. Cost accounting usually works on identifying, analyzing, and communicating cost related information to the management whereas managerial accounting works on all types of accounts to provide insights into the overall condition and development aspects to the management. Task: 2 Costs can be classified in many ways. Different classification of costs shows various aspects of costs. (Lanen, Anderson, and Maher, 2013) Product cost and period cost are two major classifications. Product costs are those expenses that are directly related to the production of product or services. These costs can be directly attributed to each product produced. Direct material, Direct labor, Manufacturing overhead etc. are the product costs. Period costs are costs that are not directly attributable to the products produced. These are the costs that cannot be traced to a particular product or service. Period costs include marketing cost and administrative cost. Other classification of costs includes – variable cost, fixed cost and semi-variable cost. Variable costs include those costs that change due to changes in overall output level. As the production increases, the cost also increases and vice versa. Example: Direct material, direct labor etc. Fixed costs are the costs that do not change due to changes in the output quantity. Whether the output level increases or decreases the cost level doesn’t change. Example: Marketing costs and administrative expenses. Semi-variable costs include those costs which remain fixed for a given level of output. After the level of output is crossed the cost increases at a particular rate for per unit of additional output. Example: utility bill. (Lanen, Anderson, and Maher, 2013) Task: 3 Ending Inventory Calculation – FIFO method Total inventory available for sales = (450+150+150+250) = 1000 units Total sales = ( 75+115+175+200+200 ) = 865 units Ending inventory = (1000-865) units = 135 units As FIFO method is to be used to determine the value of the ending inventory the remaining inventory units are from the last purchase 250 units which have a per value of 5.4 and was purchased on 25th June. So the value of ending inventory is – Ending Inventory Calculation FIFO Date Quantity Per unit price Value 25th June 135 5.4 729 Ending Inventory Calculation – AVCO method Average cost per unit = Total cost of available goods for sales / Total goods available for sales = 5220/1000 = 5.22 Ending Inventory Calculation AVCO Date Quantity Per unit price Value 1st June 450 5 2250 7th June 150 5.5 825 15th June 150 5.3 795 25TH June 250 5.4 1350 Total available goods 1000 5220 According to the previous calculation the ending inventory is 135 units. So, the value of ending inventory is – Ending Inventory Calculation AVCO method Date Quantity Per unit price (average) Value Ending Inventory 135 5.22 704.7 According to the two methods used to calculate the value of ending inventory, the value is different from each method. The reason behind is that the per unit price is different in each method. Though the quantity available in the inventory after the month of June is same in each method, the value of ending inventory is different due to the per unit price attributed to the product under each method. Under FIFO method per unit price of 5.4 is used as the inventory is assumed to be available from the last purchase units which were 5.4 per unit and all previous inventory from beginning inventory and from other previous purchases are sold out. Under AVCO method an average price of all the quantity available to be sold is calculated and used to find out the cost of ending inventory. (Weetman and IVONNE, 2013) The above sample also shows that when the price is rising the FIFO method gives more value to the ending inventory than the average method. This means that the firm is allocating less value or cost to the cost of goods sold. As the cost of goods sold is lower in the FIFO method, the net income will be higher. This process violates the conservatism principle of the method. So to determine which method of inventory valuation to use organizations usually follow industry practice. Besides, in the case of rising prices FIFO method is not appropriate to use. Task: 4 Responsibility accounting: Responsibility accounting provides information to the different responsibility centers that help to take a decision regarding each responsibility centers and contributes to develop the performance of the responsibility centers. Here responsibility centers are those for which a manager has authority and responsibility. Usually responsibility centers are defined as the departments of an organization. The management of cost center has authority over costs. They don’t have control over revenue or investment activities. Departments such as accounting, finance, legal, and personnel are common cost centers. (Brewer et al., 2009) The management of cost center has authority over both costs and revenues but doesn’t have any control over investment fund. For example: the manager of an amusement park. From the given scenario the employment of an assistant is related to activities of the cost center. The decision to purchase new dryers and washing equipment is the activity of investment center. The decision to take a loan for this purpose is related to the business of both cost center and investment center. The performance of cost center can be evaluated comparing the actual cost with the standard cost for a particular level of output. All the variances analysis of the previous task can be mentioned here. The performance of profit center can be evaluated comparing actual benefit with budgeted profit and performance of investment center can be evaluated comparing the ROI of the organization. (Brewer et al., 2009) Task: 5 Variable cost is the cost that changes due to changes of product produced. Per unit variable cost is usually fixed at a specific level. On the other hand, fixed cost doesn’t change due to changes in the level of output. Fixed cost is not usually calculated per unit basis. (Horngren, Datar, and Rajan, 2014) We can use high-low method to find out variable cost and fixed cost from the total cost. Variable cost per unit: At first find out the highest activity and the lowest activity. Activity High Low Unit Total Cost 9400 55660 5500 39320 Variable cost per unit = = = 4.19 Fixed cost = Total cost – Total variable cost = 55660 – (4.19*9400) = 55660 – 39383.60 = 16276.40 In this method we assumed a linear relationship between variable cost and total cost. We also assumed that in these activity levels (5500-9400) the total fixed cost has not changed. The variable cost per unit is fixed at 4.19 per unit. It means that to increase one unit of output the total cost will increase by 4.19 and there will be no change in the level of fixed cost. This method is also developed by assuming a linear regression equation between total cost with variable cost per unit and total fixed cost. (Horngren, Datar, and Rajan, 2014) Total cost = Variable cost per unit * no of output + total fixed cost Task: 6 Standard cost card (Absorption Costing) Standard Cost Card (Absorption costing) Standard Standard Standard Items Price Quantity Cost Direct Material per kg kgs Material A 3 5 15 Material B 10 4 40 Direct Labor per hr hours Skilled 6 3 18 Unskilled 2.5 2 5 Variable Overhead 3 2 6 Fixed Overhead Total cost 5 3 15 99 Standard cost card (Marginal Costing) Standard Cost Card (Marginal costing) Standard Standard Standard Items Price Quantity Cost Direct Material per kg kgs Material A 3 5 15 Material B 10 4 40 Direct Labor per hr hours Skilled 6 3 18 Unskilled 2.5 2 5 Variable Overhead 3 2 6 Total cost 84 The above two table shows standard cost card under absorption costing method and marginal costing method. Under absorption costing method per unit standard cost is 99 but under marginal costing method per unit standard cost is 84. The difference of 15 is due to the allocation of fixed overhead under absorption costing method. Under marginal costing method fixed overhead is not allocated to the per unit cost. As the fixed overhead doesn’t change with accordance to the increase or decrease in the level or output, it is not included in the cost card under marginal costing method. Marginal cost card includes those costs that change due to one unit change in the level of output. As fixed overhead doesn’t follow these criteria, fixed overhead per unit is not included under marginal costing method. Task: 7 Variances for material: Quantity (kgs) Actual price Standard price Difference in Price Total price variance Condition 213776 1.25 1.2 0.05 10688.8 U Standard Price Actual Standard Difference in quantity quantity quantity 1.2 213776 214000 Total variance Total quantity variance 224 268.8 F 10420 U According to the given data material price variance is not favorable. Per unit price is higher than the standard price. The reason behind is that the management is not capable of bargaining a good price for the materials from the suppliers. The material quantity variable is favorable to some extent. The total material required to produce 42800 output is lower than the standard level of materials required. That is why the material quantity variance is favorable. But the total variable is unfavorable as material price variance is much higher than material quantity variance. The reason behind that may be the quality of material has improved and so suppliers are charging a higher price for the materials. This logic seems appropriate as the material required per unit output has reduced from the previous standard level and it is possible if the quality of material is improved. (Brewer et al., 2009) Direct labor variance: Quantity (hours) Actual rate Standard rate Difference in rate Total rate variance Condition 86970 4.1 4 0.1 8697 U Standard rate Actual Standard Difference in Total efficiency quantity quantity quantity variance 4 86970 85600 1370 5480 U Total variance 14177 U According to the given data the direct labor rate variance is unfavorable. The per hour direct labor rate is higher than the standard labor rate. This may result in due to overtime work for this output level. Overtime hour rate is higher than normal hour rate. The direct labor efficiency variance is also unfavorable as actual hour used is higher than standard hour for this level of output. The reason behind unfavorable efficiency variance can be attributed to poorly trained workers, demotivated workers, poor quality materials, faulty equipment etc. Variable overhead variance: Quantity (hours) Actual rate Standard rate Difference in rate Total rate variance Condition 86970 1.9 2 0.1 8697 F Standard Actual Standard Difference in Total efficiency rate quantity quantity quantity variance 2 86970 85600 1370 2740 U Total variance 5957 F Variable overhead is related to direct labor hour. We used direct labor hour as a base to allocate overhead cost per unit. The actual rate for variable overhead per hour is lower than the standard rate. So the variable overhead rate variance is favorable for the firm. On the other hand the direct labor hour is higher than the standard level of labor hour for 42800 unit of output. That is why the variable overhead efficiency variance is unfavorable. But the total variance of variable overhead is favorable for the firm. Fixed overhead variances: Quantity (hours) Actual rate Standard rate Difference in rate Total rate variance Condition 86970 1.09 1.5 0.41 35455 F Standard Actual Standard Difference in Total efficiency rate quantity quantity quantity variance 1.5 86970 85600 1370 2055 U Total variance 33400 F We used direct labor hour as a base to allocate fixed overhead cost per unit. The fixed overhead spending variance is favorable as the actual rate is much lower than the standard rate. On the other hand, fixed overhead volume variance is unfavorable. This is related to direct labor hour. As the actual direct labor hour is higher than the standard direct labor hour the variance is unfavorable. The total fixed overhead variance is favorable as the spending variance is higher than volume variance. (Brewer et al., 2009) Sales variance: Sales volume variance = (Actual unit sold – budgeted unit sold) * Standard contribution per unit = (40000-30000) * 49 = 490000 F Sales price variance = (Actual price - Budgeted price) x Actual unit sales = (70-70) * 40000 =0 Total sales variance = 490000+0 = 490000 The sales volume variance is favorable as the actual unit sold is higher than the budgeted sales unit. But the sales price variance is zero as the budgeted sales price and actual sales price was equal at $70. Task: 8 Actual Profit Statement (Absorption costing): Actual profit statement Sales (70*40000) $ 2,800,000 Less: Direct Material $ 267,220 Less: Direct Labor $ 356,577 Less: Variable production overhead $ 165,243 Less: Fixed production overhead $ 95,000 Gross Profit $ 1,915,960 Budgeted Profit Statement (Absorption costing): Budgeted profit statement Sales (70*30000) $ 2,100,000 Less: Direct Material (6*30000) $ 180,000 Less: Direct Labor (8*30000) $ 240,000 Less: Variable production overhead (4*30000) $ 120,000 Less: Fixed production overhead (3*30000) $ 90,000 Gross Profit $ 1,470,000 Reconciliation of Actual profit and Budgeted profit: Reconciliation Profit as per actual statement $ 1,915,960 $ 254,040 Less: Additional sales revenue $ 700,000 Profit as per budgeted statement $ 1,470,000 Add: direct material overapplied $ 87,220 Add: direct labor overapplied $ 116,577 Add: variable overhead overapplied $ 45,243 Add: fixed overhead overapplied $ 5,000 References Hansen, D.R., Mowen, M.M. and Guan, L. (2007) Cost management: Accounting and control. 6th edn. Cincinnati, OH, United States: South-Western College Pub. Lanen, W.N., Anderson, S.W. and Maher, M.W. (2013) Fundamentals of cost accounting. 4th edn. New York: McGraw-Hill Higher Education. Brewer, P.C., Garrison, R.H., Noreen, E.W. and Garrison.., R.H. (2009) Introduction to managerial accounting. 5th edn. Boston: McGraw Hill Higher Education. Weetman, P. and IVONNE, P. (2013) Financial and management accounting: An introduction. 6th edn. Harlow, United Kingdom: Pearson Education. Horngren, C.T., Datar, S.M. and Rajan, M.V. (2014) Cost accounting: A managerial emphasis. 15th edn. United States: Prentice Hall. COLLEGE OF BANKING AND FINANCIAL STUDIES DEPARTMENT OF PROFESSIONAL STUDIES Assignment Front Sheet (Assignment – 1) Qualification Unit number and title Pearson BTEC Level 5 HND Diploma in Accounting. Cost Accounting and Performance Management Semester Batch - Fall 2016-2017 IV Student name Assessor name Ms. Shobhna Student No. Internal Verifier (IV) name Date issued Completion date th 24 Assignment title Learning Outcome Understand The Nature Source And Purpose Of Management Information And Cost Accounting Concepts And Be Able To Compare Actual Costs With Standard Costs And Analyse Variances. Learning outcome Assessm ent Criteria Understand the Nature source and purpose of management information and cost accounting concepts 1.2 Compare and contrast various Cost classification methods 1.3 Estimate inventory values using different methods Differentiate between cost, profit, investment and revenue centres. Separate the fixed and variable elements of total costs using a suitable method in a given situation Explain and illustrate the difference between standard cost card under marginal and absorption costing Compute and interpret price and usage variances for material, labour, and overhead inputs Reconcile budgeted profit with actual profit under standard absorption costing. 1.5 3.1 Understand and be able to compare actual costs with standard costs and analyse variances In this assessment you will have the opportunity to present evidence that shows you are able to: of cost Explain the relationship accounting to financial and managerial accounting 1.4 LO - 3 Submitted on November 2016 1.1 LO- 1 Dr. Roslin 3.2 3.3 Task Evidence no. (Page no) 1 2 3 4 5 6 7 8 I certify that the work submitted for this assignment is my own and research sources are fully acknowledged. Student signature: pg. 1- HND- SEM-IV- ASSIGNMENT – CAPM – FALL 2016-2017 Date: In addition to the above PASS criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades Grade Descriptor Indicative characteristic/s Contextualisation M1 Identify and apply strategies to find appropriate solutions To achieve M1, explore the relationship between Cost, Financial and Managerial Effective judgements have Accounting. (Task 1). To get M1 you should make the effective judgement between been made. M2 Select / design and apply appropriate methods / techniques A range of methods and techniques have been applied standard cost and standard costing. (Task 6) A range of sources of information has been used M3 Present and communicate appropriate findings D1 Use critical reflection to evaluate own work and justify valid conclusions D2 Take responsibility for managing and organising activities D3 Demonstrate convergent /lateral / creative thinking To get M2 you should be able to select suitable method to separate the fixed and variable elements of total costs and explain it. You should explain the concept of cost behaviour used in the identified method. (Task 5) To get M2 Use appropriate method to calculate sales variances accurately.(Task 7) To achieve M3 To achieve M3 you will need to differentiate Inventory values and present the reasons of difference between the stock values. (Task -3). To get M3. You The appropriate structure should be able to make judgement, of the responsibility centre and explain how and approach has been managers of responsibility centres are responsible for the performance of their part of used the organization and its activities and how the performance is measured. (Task 4).To get M3 Present and communicate appropriate findings to explain the concept of reconciliation statement using different methods.( Task 8) Realistic improvements To achieve D1 you should evaluate the process of inventory control system.(Task -3)To have been proposed get D1 evaluate the reasons for the occurrence of adverse and favourable variances.( against defined characteristics for success Task -7) Autonomy/independence has been demonstrated Innovation and creative thought have been applied A range of sources of information has been used pg. 2- HND- SEM-IV- ASSIGNMENT – CAPM – FALL 2016-2017 To achieve D2- Recognize the interrelationship between variances.( Task 7) Assignment Brief Purpose of this Assignment: Involvement with costs is fundamental to the role of management accountants. Any Business, whether it manufactures goods or provides a service, needs to know how much its product or services cost and how these costs might change in response to decisions made. This assignment will help you understand the nature source and purpose of management information and cost accounting concepts and to compare actual costs with standard costs and analyse variances. It also helps to understand performance measurement models: Balanced scorecard, benchmarking, types of benchmarking. Task 1 (LO-1 AC -1.1) P,M1 1.1 Explain the relationship of cost accounting to financial and managerial accounting. Context- Relevant to L.O.1.1 (P, M1) Financial accounting Systems ensure that the assets and liabilities of a business are properly accounted for, and provide information about profits to shareholders and to other interested parties. Management accounting system provides information specifically for the use of managers within an organisation. Cost and management accounting are the terms which are often used interchangeably. Required: In relation to the above explain the relation of cost accounting to Financial and Management Accounting and how it helps management in decision making. Pass: To get the Pass Grade explain briefly Cost accounting, Management Accounting and Financial Accounting and explore the relationship between them. M1- To achieve M1, make an effective judgement by differentiating Cost, Financial and Managerial Accounting. Task 2. (LO-1 AC 1.2 ) Compare and contrast various Cost classification methods. Tested in semester – 3 Management Accounting Costing and Budgeting. (Learning Outcome 1.1) Classify different types of cost. Task 3 (LO -1 AC 1.3) P, M3, D1 1.3 Estimate inventory values using different methods. Scenario-1 The Reeda is a Trading Company. It buys goods from Dubai and sell it in Oman. The company discloses the following information about the stock for the month of June 2016: Date 1st June Purchases/Sale Opening Stock pg. 3- HND- SEM-IV- ASSIGNMENT – CAPM – FALL 2016-2017 Units 450 Cost per unit ($) 5 4th June 7th June 10th June 11th June 15th June 20th June 25TH June 27th June Sale Purchase Sale Sale Purchase Sale Purchases Sale 75 150 115 275 150 200 250 200 5.50 5.30 5.40 Pass - To achieve Pass grade you should be able to estimate inventory values of Reeda Company on 30th June 2016 using FIFO and AVCO methods. M3 - To achieve M3 you need to present appropriate findings by differentiating Inventory values calculated above and present the reasons of difference between the stock values. D1- To achieve D1 you should evaluate the process of inventory control system and justify it. Task 4 (LO-1 AC- 1.4) P,M3 1.4 Differentiate between cost, profit, investment and revenue centres. Scenario: Sara Lee has been operating a small hairdressing business for several months. She is managing the business individually and is responsible for deciding the cost of all the hair styles and handling the marketing for the customers. She has started the business by using her savings. Business is growing slowly. She would like to expand by employing an assistant (Leena) to look after the day to day activities of the business and to decide the cost to be charged for different services they provide. She is also planning to purchase new dryers and washing equipment. She is thinking to take a loan for the same. She will need to monitor the success of that investment by making the judgement of the profitability and the capital she has invested. Pass- To get the Pass grade explain responsibility accounting and differentiate between cost, profit, investment and revenue centres. M3- To get M3 grade present appropriate findings of the above scenario and link them with the appropriate responsibility centres and communicate how managers are responsible for their centre’s performance and how the performance is measured. Task 5 (LO-1 AC- 1.5) P,M2 1.5 - Separate the fixed and variable elements of total costs using a suitable method in a given situation. Scenario- 3 The CG Kitchenware Limited sells kitchen appliances (Dishwashers, Fridges and Ovens) to departmental pg. 4- HND- SEM-IV- ASSIGNMENT – CAPM – FALL 2016-2017 stores. The following table shows the number of Ovens sold and total costs for each of the past five months Months 1 2 3 4 5 Ovens 6,000 9,400 8,900 5,500 6,500 Total Cost ($) 47,500 55,660 49,050 39,320 50,500 Variable cost per unit and total fixed cost is constant within this range of activity. Pass- To get the pass grade you should be able to separate the fixed and variable elements of total costs using a suitable method in a given scenario. M2 - To get M2 you should be able to select suitable method to separate the fixed and variable elements of total costs and explain it. You should explain the concept of cost behaviour used in the identified method. Task 6 (LO-3 AC- 3.1) P,M1 3.1 - Explain and illustrate the difference between standard cost card under marginal and absorption costing. Scenario Nu Line Ltd. Manufactures machine tools for conversion to specialist use. The tools are sold to the textile industry. Company is not automated and is based on simple labour intensive process. Company plans to produce 5,000 units in a year. Based on historical data the Company calculated the following standards concerning direct Inputs: Direct materials: Material A Material B 5 Kg at $3.00 per Kg 4 Kg at $10.00 per Kg. Direct labour: Skilled Unskilled 3 hours at $6.00 per hour. 2 hours at $2.50 per hour Variable overhead 2 hours at $3.00 per hour Fixed production overhead cost is $75,000 and is absorbed on the basis of skilled labour hours. Pass-To get pass grade use the above date to draw the standard cost card under marginal and absorption costing and explain the difference between them. M1-To get M1 you should make the effective judgement between standard cost and standard costing, pg. 5- HND- SEM-IV- ASSIGNMENT – CAPM – FALL 2016-2017 Task 7 (LO-3 AC- 3.2) P,M2,D1,D2 3.2 - Compute and interpret price and usage variances for material, labour, and overhead inputs Scenario- 5 Task 7 (LO-3 AC- 3.2) P,M2,D1,D2 Plastics Ltd. Manufactures different plastic products Standard costs relating to one of its product have been calculated as follows: Direct material 5 Kg at $1.2per kg Direct labour, 2 Hours at $4 per hour Variable production Overhead, 2 Hours at $2 per hour Fixed production Overhead 2 hour at $1.5 per hour 6.00 8.00 4.00 3.00 The budgeted selling price of one bag is $70 and Carrypack budgeted to produce and sell 30,000 units a month. During December 42,800 units were actually produced and 40,000 units were sold, actual selling price was $70 per unit. Relevant actual details of production are as follows: Materials 213,776 Kgs costing Labour 86,970 hours were worked and total wages were Variable production overhead was Fixed production overhead was $ 267,220 $356,577 $165,243 $95,000 Compute and Interpret price and usage variances for material, labour, overhead (fixed and variable) and sales. Pass- Compute and interpret price and usage variances for material, labour, overhead (fixed and variable). M2 - To get M2 Use appropriate method to calculate sales variances accurately. D1 - To get D1 evaluate the reasons for the occurrence of adverse and favourable variances. D2- Variances should not be looked at in isolation. One variance might be inter-related with another, take a responsibility for managing and organising your activity and recognize the interrelationship between variances calculated above. Task 8 (LO-3 AC- 3.3) P, M3 1.3 - Reconcile budgeted profit with actual profit under standard absorption costing. Pass: To get the pass grade prepare the reconciliation statement (using task 7 above) and actual profit statement and match the profits under absorption costing using appropriate format. M3- To get M3 Present and communicate appropriate findings to explain the concept of reconciliation statement using different methods. pg. 6- HND- SEM-IV- ASSIGNMENT – CAPM – FALL 2016-2017 Evidence checklist Summary of evidence required by student Task 1 Essay identifying and explaining the relationship of cost accounting to financial and managerial accounting. Task 2 Tested before Task 3 Calculation showing stock valuation using different methods. Task 4 Based on the case evidence identify responsibility centres. Task 5 Calculation showing the segregation of fixed and variable part of the total cost. Task 6 Drafting standard cost card under marginal and absorption Costing. Task 7 Calculation and interpretation of Variances. Task 8 Drafting statement to reconcile actual and budgeted profits. Evidence presented Guidance notes: 1. Use standard document formats and structures. 2. Word process the documents. 3. Use 12 point Arial or Times New Roman script. 4. Provide a list of references and use the Harvard referencing system. 5. Complete the title page and sign the statement of authenticity. 6. Upload the entire assignment in MS word format only on Turnitin. 7. Staple only once to keep the pages of your work together. 8. Late submission, late work will only be marked on the next occasion the unit is taught. 9. Submit the work along with the Turnitin report to the respective assessors in their offices. 10. Collect the assignment submission form duly signed by the assessor and the learner. 11. Grades are subject to External Verification. Resources: List of Websites 1. www.accagloabl.com 2. www.cimaglobal.org.uk 3. http://www.ICAEW.co.uk 4. http://www.aicpa.org List of Books: 1. FIA, FMA, Management Accounting, ACCA Paper F2 (2012, 2014), BPP Learning Media. 2. William Lanen, Shannon Anderson, Michael Maher: Fundamentals of Cost Accounting, McGrawHill/Irwin; 3 edition (January 7, 2010), ISBN-10: 0073527114, ISBN-13: 978-0073527116 | Edition: 3 1. James Jiambalvo : Managerial Accounting, 2nd Edition, Wiley, June 2012, ©2004, ISBN: 978-0-47013718-5. Word limit – 2500 words. pg. 7- HND- SEM-IV- ASSIGNMENT – CAPM – FALL 2016-2017 Achievement Summary Pearson BTEC Level 5 HND Diploma in Accounting Qualification Unit Number and title Cost Accounting and Performance Management Student Number Criteria Reference Assessor name Ms. Shobhna IV name Dr. Roslin Student name To achieve the criteria the evidence must show that the student is able to: Achieved? (tick) LO1 1.1 Explain the relationship of cost accounting to financial and managerial accounting 1.2 Compare and contrast various Cost classification methods 1.3 Estimate inventory values using different methods 1.4 Differentiate between cost, profit, investment and revenue centres. 1.5 Separate the fixed and variable elements of total costs using a suitable method in a given situation LO-3 3.1 Explain and illustrate the difference between standard cost card under marginal and absorption costing 3.2 Compute and interpret price and usage variances for material, labour, and overhead inputs 3.3 Reconcile budgeted profit with actual profit under standard absorption costing. Higher Grade achievements (where applicable) Grade descriptor Achieved? (tick) M1: Identify and apply strategies to find appropriate solutions Grade descriptor D1: Use critical reflection to evaluate own work and justify valid conclusions M2: Select/design and apply appropriate methods/techniques D2: Take managing activities M3: Present and appropriate findings D3: Demonstrate convergent/lateral /creative thinking communicate pg. 8- HND- SEM-IV- ASSIGNMENT – CAPM – FALL 2016-2017 responsibility for and organising Achieved? (tick) Assignment Feedback Summative Feedback: Assessor to Student Action Plan Formative feedback Feedback: Student to Assessor Assessor Signature Date IV Signature Date Student Signature Date pg. 9- HND- SEM-IV- ASSIGNMENT – CAPM – FALL 2016-2017
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