ACCT7107 Management Accounting and Control - Case Study Help

Assessment Task :

1. Background (12 marks)
This section should include a brief overview of the salient background information provided in the case. This information should be relevant to your consideration of the company’s problem(s) and issues in section 2. Note: You must not reproduce the text of the case. (What you include must add value).

Ideally, you should describe:

• the type of the business
• its products and product mix
• processes
• costing systems
• strategy
• What is the competitive environment faced by Fantasy Bike? Have its products, processes and strategy changed over time?

2. Problem(s) and Issues (20 marks)

In this section you must identify and briefly discuss:

1. the problem Fantasy Bike has been facing (5 marks). State the problem in one sentence.
2. the issues that may have led to the problem(s) the company has been facing and (9 marks)
3. the rationale for the problem and issues you have identified (i.e., why did you come to this conclusion?) (6 marks)

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3. Analysis and Conclusions (38 marks: 14 Qualitative arguments: 14 Quantitative calculations; 10 Conclusions)
- Qualitative/non-calculative Analysis (14 marks)

• Discussion of flawed ‘existing’ cost system. Evidence of the need for cost refinement?
• How could the ‘existing’ cost system affect decision making?
• Discussion of ‘revised’ costing system
• Discussion of capacity

- Quantitative Analysis (14 marks) (Should be in Appendix)

• Calculate the cost of the 5 orders in Exhibit 3 under the traditional costing and new costing systems (cost pools? cost drivers and then allocation?)
  hint: first calculate the cost under the new system and then think about the differences between the systems considered in question 3 above). What do you notice?
• Calculate the traditional and new costs for each order if 1 unit, 10 units, 20 units or 100 units respectively are ordered in each order. Perhaps graph the product costs against the volume ordered. Does it tell a story? What do you notice?

- Conclusions (10 marks)
You need to draw conclusions from your analysis at the end of this section (not in your recommendations).
What did you find? Does it agree with your original expectations? How does the new information assist you (and Fantasy Bike)?

4. Recommendations (22 marks)
How is Fantasy Bike going to alleviate the problem? Make sure you use action statements– what should the company now do with the information from your findings?

Your recommendations for addressing the underlying causes of the problem(s) and issues must be presented concisely. You should not make recommendations that are essentially new ideas that have never been raised.

• You should provide no less than three (3) recommendations.
• Provide actionable details / plans to implement the recommendations. You should provide no less than two (2) actionable plans for each recommendation

Also required:
Presentation, Grammar (readability) and References (8 marks)
You must ensure that your case is cohesive, readable and well-presented and does not contain spelling or grammatical errors. You must also appropriately reference any literature you have used in preparing your case study submission. Students should follow the Harvard Style of referencing used in the UQ Business School courses. (Refer to UQ Library for referencing guides)

Case Write-up Requirements:
Your case write-up should follow the structure outlined above. The questions provided direct your attention to the major problem(s) and issues faced by the company and allow you to apply the concepts and principles learned in ACCT7107 to a real business but are not the answer to your case.