BKAM3033 CONFIDENTIAL UNIVERSITI UTARA MALAYSIA FINAL EXAMINATION SECOND SEMESTER SESSION 2010/2011 COURSE CODE / NAME : BKAM3033/ADVANCED MANAGEMENT ACCOUNTING DATE/DAY i MAY 2011 / TUESDAY TIME +9.00AM ~ 12.00PM (3 HOURS) VENUE : DSB, K. TM INSTRUCTIONS : 1. This examination paper consists of FIVE (5) questions in SIX (6) printed pages excluding the cover page. J 2. You are required to answer ALL questions in given answering booklet, Please answer each main question on anew piece of answer sheet. MATRIC NO: Cin word ) IDENTIFICATION CARD NO. : I LLIC LECTURER : GROUP: TABLE NO. : DO NOT OPEN THIS EXAMINATION PAPER UNTIL INSTRUCTED CONFIDENTIAL‘BKAM3033 Advanced Management Accounting QUESTION 1 (25 MARKS: 45 MINUTES) Fast-Moving Gardenia (FMG) is one of the largest wrapped-bread brand in the country. FMG rolled the first loaf of bread off its line in 1986. Within four short years it became the bread market leader with a shocking 99 percent brand recall rate, FMG’s range of products grew and evolved through the years, becoming better and better with each step. The industry can be segregated into three different sectors namely the primary sector (concerns with natural resources and the extraction of raw materials); the secondary sector (involves the manufacture or refining of goods from the raw materials obtained in the primary sector); and the tertiary sector (providing services to businesses and consumers). Leveraging on its brand strength, FMG now produces a variety of baked products to satisfy consumers’ demands. Behind these consumer needs for fresh products, there is a complex process of production. In the case of bread, meeting these needs is not just dependent upon a bread manufacturer. The process starts with the farming of the wheat. This is then milled into flour before being baked into the bread, packaged and distributed to stores to be made available to the consumer. Every day more than two million bakery products are made and distributed around the country. This ensures that many thousands of retail outlets have freshly baked products daily. FMG leading position in the market is underpinned by the company’s dedication to supply continuously high quality bakery products, whilst investing in innovation and new product development. Every organization has to plan for the future, The key areas of FMG long-term plan are to: i. Focus on quality by baking the best quality bread every day. ‘To ensure that the superior quality of every FMG product is consistently maintained, their Quality Assurance laboratory conducts random quality checks around the clock and closely monitors product quality at every stage of production. Drive sales. Run efficient bakeries. ‘Manage costs. Invest in people working within the business. Key employees are regularly sent overseas for training at an international institute of baking and other professional institutions around the world. They also attend trade fairs to keep abreast with the global trends, new technologies and products as well as the ever changing consumers’ lifestyle. ze < To do this, FMG has taken a sustainable approach to running the business. This means that FMG adopts practices that can continue long into the future by managing the supply chain to meet customer needs. This involves such things as using sources that minimize the impact on the environment for future generations. However, for FMG, it also includes developing long-termBKAM3033 Advanced Management Accounting relationships with its stakeholders to ensure the supply of quality products for the foreseeable future, REQUIRED: (@) Explain how value can be added to FMG products. (2 Marks) (b) Explain, by providing one example for each respective sector, the kind of activities involved in the primary, secondary and tertiary sectors in relation to the industry FMG is in, (6 Marks) (©) Explain how a firm such as FMG can contribute to the primary, secondary and tertiary sectors within the same supply chain. (6 Marks) (® Analyse and provide THREE (3) reasons for a firm to use sustainable and responsible practices in its supply chi (6 Marks) (©) Discuss whether managing the supply chain responsibly improves customer satisfaction. (S Marks)