Unit 9 Management ing Costing And Budgeting 4a3t42

Assignment Front Sheet Qualification

Unit number and title

Pearson BTEC Level 5, HND Business (ing)

Unit 9: Management ing: Costing and Budgeting Unit code: R/601/0836 Credit value: 15 credits

Student name

Assessor name Faraz Ahmad

Date issued

Completion date

Submitted on

Assignment title

Skills in the Costing and Budgeting

Validity

Assignment no

Hand-in Policy You must complete this assignment on time. If you experience difficulties, you must inform your tutor accordingly. Late Work Policy Consideration will be given to students who have valid reasons for late submission (eg, illness). Plagiarism In cases of plagiarism, college regulations will be applied. You must declare that this assessment is your own work by g the following statement:

Learner declaration I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

Student signature:

Date:

Assessment Criteria

Learning Outcome

LO1

LO2

LO3

Learning outcome

Be able to analyse cost informatio n within a business

Be able to propose methods to reduce costs and enhance value within a business

Be able to prepare forecasts and budgets for a business

Assessmen t Criteria

LO4

Task Evidence no. (Page no)

1.1

Classify different types of cost

1

1.2

Use appropriate costing method

1

1.3

Calculate costs using appropriate techniques

1

1.4

Analyse cost data using appropriate techniques

1

2.1

Prepare and analyse routine cost reports

2

2.2

Use performance indicators to identify potential improvements

2

2.3

Suggest improvements to reduce costs, enhance value and quality

2

3.1

Explain the purpose and nature of the budgeting process

3

3.2

Select appropriate budgeting methods for the organisation and its needs

3

3.3

Prepare budgets according to the chosen budgeting method

3

3.4

Prepare a cash budget

3

4.1 Be able to monitor performance against budgets within a business

In this assessment you will have the opportunity to present evidence that shows you are able to:

4.2

4.3

Calculate variances, identify possible causes and recommend corrective action Prepare an operating statement reconciling budgeted and actual results Report findings to management in accordance with identified responsibility centres

4 4

4

In addition to the above criteria, this assignment gives you the opportunity to submit evidence in order to achieve the following MERIT and DISTINCTION grades Grade Descriptor M1 Identify and apply strategies to find appropriate solutions

Indicative characteristic/s

An effective approach to study and research has been applied Effective judgements have been made

M2 Select / design and apply appropriate methods / techniques

D2 Take responsibility for managing and organising activities

A range of sources of information has been used Relevant theories and techniques have been applied

Autonomy/independence has been demonstrated Substantial activities, projects or investigations have been planned, managed and organized

Contextualisation To achieve M1, an effective approach to study and research has been applied (Task 1) To achieve M1, an effective judgements have been made, an effective approach to study and research has been applied (Task 2) To achieve M1, an effective approach to study and research has been applied, effective judgements have been made (Task 3) To achieve M2, a range of sources of information has been used (Task 1) To achieve M2 a range of sources of information has been used, relevant theories and techniques have been applied (Task 3) To achieve D2 autonomy/independence has been demonstrated, substantial activities, projects or investigations have been planned, managed and organised (Tasks 1) To achieve D2 autonomy/independence has been demonstrated, substantial activities, projects or investigations have been planned, managed and organised (Task 2) To achieve D2, substantial activities, projects or investigations have been planned, managed and organised, autonomy/independence has been demonstrated. (Task 3)

D3 Demonstrate convergent /lateral / creative thinking Please note that for unit assignments assessors should use these or other exemplar indicative characteristics for the individual grade descriptors from Annexe C of the HN specification or any other relevant indicative characteristics for the particular assignment. The indicative characteristic should then be contextualised. Only one indicative characteristic per grade descriptor, M1 M2, M2, M3, D1, D2, and D3 is required.

Assignment brief

Unit Name number and title

Unit 9: Management ing: Costing and Budgeting Unit code: R/601/0836 Credit value: 15 credits

Qualification

Pearson BTEC Level 5, HND Business (ing)

Start date

3rd December 2013

Deadline/hand-in

3rd January 2013

Assessor

Faraz Ahmad

Assignment title

Skills in the Costing and Budgeting

Scenario Managing costs is a critical challenge faced by modern businesses and vital to all stakeholders. TMRC is the renowned management consultancy firm that provides management consultancy and advisory to various domestic clients. You are acting as Management Trainee Officer in consulting and are asked to show your ability to analyse cost information within a business, propose methods to reduce costs and enhance value within a business, prepare forecasts and budgets for a business and monitor performance against budgets within a business. To achieve this you are required to select a business for which cost data access is available to you in order to be able to perform tasks given below. You can also use different cost data of different businesses in difference tasks if you face problems with access of data.

Task 1 (LO1: 1.1, 1.2, 1.3, 1.4 and M1, M2, D2) Be able to analyse cost information within a business In order to achieve this, you need to: •

Classify different types of cost

•

Use appropriate costing method

•

Calculate costs using appropriate techniques

•

Analyse cost data using appropriate techniques

Task 2 (LO2: 2.1, 2.2, 2.3 and M1, M2, D2) Be able to propose methods to reduce costs and enhance value within a business In order to achieve this, you need to: •

Prepare and analyse routine cost reports

•

Use performance indicators to identify potential improvements

•

Suggest improvements to reduce costs, enhance value and quality

Task 3 (LO3: 3.1, 3.2, 3.3, 3.4 and M1, M2, D2) Be able to prepare forecasts and budgets for a business In order to achieve this, you need to: •

Explain the purpose and nature of the budgeting process

•

Select appropriate budgeting methods for the organisation and its needs

•

Prepare budgets according to the chosen budgeting method

•

Prepare a cash budget

Task 4 (LO3: 4.1, 4.2, 4.3 and M1, M2, D2) Be able to prepare forecasts and budgets for a business In order to achieve this, you need to: •

Calculate variances, identify possible causes and recommend corrective action

•

Prepare an operating statement reconciling budgeted and actual results

•

Report findings to management in accordance with identified responsibility centres

Evidence checklist

Summary of evidence required by student

Task 1

Classification of different costs in the scenario one and their brief explanation. Explain different types of costing methods and which method would be suitable in the given scenario and why? Computation of equivalent units, unit costs and total cost analysis

Task 2

Report on the analysis of routine cost and suggestion for performance indicators.

Task 3

Task 4

Prepare forecast and budget for business and report your findings to the management Prepare a deviation report and discuss possible clauses and their corrective measures. Prepare an operating statement and Report your findings to the management

Evidence presented

Submission guidelines You must: • Complete all tasks

•

Present your work in one business report-style document which should include a table of contents, references list, foot or end notes if any and appendices if any.

• •

Complete, sign and submit the usual statement of authenticity.

• • •

Produce clear specific reasoning and arguments in of your answers.

Submit your work in a single word processed document of 4000-5000 approx .words. This word limit is only for guidance and is not applied on grading. Make appropriate reference to the relevant concepts, techniques and theories. Appropriately cite all information success (in the text and bibliography) as per references guidelines given to you before.

Reading Materials Textbooks Hilton, R. W. (1994). Managerial ing. London: McGraw-Hill. Business study guide, Level 4 & 5, Edexcel (2011, Pearson Education Limited), ISBN 978085776003 D. Michael Stretchberry, Gerald F. Hein, (Va., 1972) General Methodology: Costing, Budgeting, and Techniques for Benefit-cost and Cost-effectiveness Analysis NASA technical memorandum, National Aeronautics and Space istration; reproduced [and distributed] by National Technical Information Service, Springfield Journals Puxty, A. G., & Lyall, D. (1989). Cost Control into the 1990s: A survey of standard costing and budgeting practices in the UK (pp. 44-45). Chartered Institute of Management ants. Preston, A. M., Cooper, D. J., & Coombs, R. W. (1992). Fabricating budgets: a study of the production of management budgeting in the National Health Service. ing, Organizations and Society, 17(6), 561593. Alam, M., & Lawrence, S. (1994). A new era in costing and budgeting: implications of health sector reform in New Zealand. International Journal of Public Sector Management, 7(6), 41-51. Heath, C. (1995). Escalation and de-escalation of commitment in response to sunk costs: The role of budgeting in mental ing. Organizational Behavior and Human Decision Processes, 62(1), 38-54. Knippenberg, R., Soucat, A., & Vanlerberghe, W. (2003). Marginal Budgeting for Bottlenecks: A tool for performance based planning of health and nutrition services for achieving Millennium Development Goals. World Bank, UNICEF, WHO. Websites www.jiscinfonet.ac.uk www.businessdictionary.com www.euromatech.com www.digitallibrary.edu.pk