MBA7060 : Financial Management and Decision Making

Learning Outcomes Assessed

LO1: Demonstrate a broad knowledge of accounting principles and their use in decision-making and control, including awareness of external regulatory, legal, ethical frameworks, and financial reporting requirements

LO3: Critically evaluate, select and use financial software applications, including spreadsheets, etc., to support problem solving in key business areas.

Use of Generative Artificial Intelligence (GAI) Applications in this Assessment

While grammar and/or spell checkers may be used to correct individual words and sentences, the use of GAI is not allowed. This is because the learning outcomes require you to produce original assessment work without any GAI assistance

Any GAI generated content which is presented as your own original work and is not acknowledged will be assessed for academic misconduct.

Assessment Task Scenario 

International accounting regulations, Costing techniques and budgeting

Business operations are expanding beyond organisations national borders and normal operational grounds. This ever-increasing globalisation means that, although businesses can outsource manufacturing and access more customers all over the world, the need to manage costs and price product appropriately, develop a fitting budgeting system and understand in more detail the international regulatory and accounting requirements have never been so crucial. 

Assignment Tasks

Fastrack Ltd is a UK-based manufacturing organisation. The directors believe that there is a need to develop a new costing and product pricing system to reduce costs and maximise shareholders wealth. They are also seeking to develop better budgeting systems and have a clear and better understanding of requirement of international financial accounting regulations. As the financial director of the organisation, the CEO has asked you to write a report to advise Fastrack Ltd on the best costing and pricing technique, a new and better budgeting system, and the company’s obligations on the international regulatory and legal standards in financial accounting. Using data provided by the organisation, you are to produce a marginal and absorption costing profit statement, a cash budget in Microsoft Excel and use the results to advise and suggest improvements for Fasttrack Ltd.

In your report, you are required to, among other things, cover the following:

1. Introduction: Explain what the report is about and parameters to be covered in the report including the definitions of costs, budgeting and their importance in business, as well as the legal and regulatory framework in financial accounting (10 marks)

1. Examine the main international financial accounting regulatory bodies, and critically evaluate the standards and financial accounting principles for financial statements. (15 marks)

1. Evaluate the main costs classifications that may be used in Fasttrack Ltd. (10 marks).
2. Using Excel spreadsheet, produce Profit statements using both the marginal and absorption costing techniques for the organisation. (An additional excel case study information is provided for this (10 marks)
3. Critically evaluate the differences between marginal and absorption costing systems and why profit figures are different in absorption and marginal costing techniques. (10 marks)
4. Using Excel spreadsheets, prepare a cash budget. (An additional excel case study information is provided for this (10 marks)
5. Critically evaluate the benefit and drawbacks in budgeting. (10 marks)
6. Suggest about three ways to improve cashflows in cash budget preparations tacking into account the cash budget closing balances of Fasttrack. (5 marks).
7. Reflecting on your report, evaluate how your understanding of international legal and regulatory framework in financial accounting, budgeting, as well as costing techniques has helped your professional development. (10 marks)
8. References (in-text and bibliography), and quality of work (10 mark)
9. Appendix

Important and helpful information

Please refer to the Module Guide for information regarding indicative reading, guidelines for the preparation and submission of assignments, and the assessment criteria.

Submission

Electronic copies of assignments should be submitted via “Turn-it-in” NO LATER THAN THE DEADLINE.Please ensure you follow the instructions provided by your module tutor and on the assessment brief. Submission of assessments must be done by submission date. Assignments not available at this time will be considered late unless an extension has been previously agreed.

Students who fail to submit assessments by the specified date (without an extension being granted or without accepted Mitigating Circumstances) will be subject to the following penalties:

• Up to 7 calendar days late = 10 marks subtracted but if the assignment would normally gain a pass mark, then the final mark to be no lower than the pass mark for the assignment.
• More than 7 calendar days late = This will be counted as non-submission and no marks will be recorded.

Please note that it is your responsibility to ensure that the assignment is submitted in the format/s specified in the Module Guide or on the Assessment Brief.

YOU SHOULD ALWAYS ENSURE YOU KEEP A COPY OF ANY ASSIGNMENT SUBMITTED.

In the case of exceptional and unforeseen circumstances, an extension of up to 14 days after the assessment deadline may be granted. This must be agreed by your Programme Leader, following a discussion the Module Tutor. You should complete an Extension Request Form available from Student Services and attach documentary evidence of your circumstances, prior to the published submission deadline. Extensions over 14 calendar days should be requested using the Mitigating Circumstances procedure. Some students with registered disabilities will be eligible for revised submission deadlines. Revised submission deadlines do not require the completion extension request paperwork.

International Accounting, Costing, and Budgeting Report

Purpose

The assignment requires students to act as the financial director of Fastrack Ltd, a UK-based manufacturing company, and provide a comprehensive report covering:

• Costing and pricing techniques: Recommend appropriate methods to reduce costs and maximize shareholder wealth.

• Budgeting systems: Design and evaluate effective budgeting processes.

• International financial accounting regulations: Review obligations and compliance with regulatory and legal frameworks.

Key Pointers to Cover

1. Introduction

   • Define costs, pricing, and budgeting.

   • Explain their importance in decision-making and control.

   • Outline the legal and regulatory frameworks relevant to international accounting.

2. International Regulatory Bodies

   • Examine main organizations (e.g., IASB, IFRS Foundation).

   • Critically evaluate financial reporting standards and principles.

3. Cost Classification

   • Analyze costs applicable to Fastrack Ltd (direct, indirect, fixed, variable, semi-variable).

4. Profit Statements Using Excel

   • Prepare marginal costing and absorption costing statements.

   • Compare the results and evaluate differences in profit figures.

5. Cash Budget Using Excel

   • Develop a detailed cash budget.

   • Evaluate benefits and drawbacks of budgeting.

   • Recommend at least three strategies to improve cash flow.

6. Reflection

   • Assess how understanding costing, budgeting, and international regulations enhances professional development.

7. References & Appendix

   • Include properly formatted in-text citations and bibliography in Harvard style.

   • Attach Excel worksheets and supporting calculations in the appendix.

Approach Followed by Academic Mentor

Step 1: Understanding Requirements

• The mentor guided the student to read the brief carefully, identifying assessment criteria and marks allocated to each section.

• Emphasis was placed on original analysis without using AI-generated content.

Step 2: Research and Data Collection

• Research on international accounting regulations, IFRS standards, and costing methods.

• Gathered Fastrack Ltd’s data for profit statements and cash budget calculations.

Step 3: Structuring the Report

• Introduction: Explained the purpose, defined costs, and outlined legal/regulatory frameworks.

• Regulatory Review: Critically analyzed IFRS standards and accounting principles.

• Cost Analysis: Classified costs and recommended appropriate costing techniques.

• Profit Statement: Student prepared marginal and absorption costing statements in Excel.

• Comparison: Evaluated differences between costing methods and discussed reasons for discrepancies.

• Cash Budget: Created using Excel; benefits, drawbacks, and cash flow improvement strategies included.

• Reflection: Discussed personal professional growth and understanding of accounting frameworks.

Step 4: Review and Referencing

• Mentor checked the report for logical flow, clarity, and alignment with learning outcomes.

• Ensured Harvard referencing was accurate, with proper in-text citations and bibliography.

Step 5: Submission Preparation

• Ensured all calculations, Excel sheets, and appendices were attached.

• Verified the report was within word limits and formatted as per the module guide.

Final Outcome

• Student Output: A detailed, original report including introduction, critical analysis of costing and budgeting methods, Excel-based profit statements and cash budget, reflections, and recommendations.

• Learning Outcomes Covered:

  • LO1: Broad knowledge of accounting principles, legal/regulatory frameworks, and decision-making.

  • LO3: Application of financial software (Excel) for problem-solving and analysis.

• Skills Developed: Analytical thinking, financial decision-making, professional accounting reporting, and regulatory compliance understanding.

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