FNSACC507 Assessment Instructions

Southern Cross School of BusinessSouthern Cross School of Business
CRICOS Provider Code: 03523D | RTO Id: 41253 | ABN: 95155625924

Level 2, 1-3 Fitzwilliam Street PARAMATTA NSW 2150 | Ph: + 61
(2) 9633 3287
Level 3, 531 George Street, SYDNEY NSW 2000 | Ph: 61 (2) 8937 0506
Assessment Instructions
FNSACC507 Provide management accounting

information
Southern Cross School of Business

Level 2, 1-3 Fitzwilliam Street PARAMATTA NSW 2150 | Ph: + 61 (2) 9633 3287
Document v1.3 February 2019
Issue date 25/06/19 Page | 1
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Table of Contents
Table of Contents 2
Assessment Schedule 3
Assessment Information 3
Assessment Instructions 4
Assessment Task 1: Ethics project 6
Assessment Task 1 Instructions 8
Assessment Task 2: 9

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Assessment Schedule
Task Due Date
Learning Activity Only and Task 1 Week 1
Task 2 Week 2
Task 2 Week 3
Assessment Information
The assessment tasks for FNSACC507 Provide management accounting information are included in
this booklet and outlined in the assessment plan below.
To be assessed as competent for this unit, you must complete all of the assessment tasks satisfactorily.
Assessment Plan
Assessment Task Overview

1. Written questions You must correctly answer all questions.
2. Case studies You must review and complete a number of case studies.
Assessment Preparation
Please read through this assessment thoroughly before beginning any tasks. Ask your assessor for
clarification if you have any questions at all.
Assessment appeals
If you do not agree with an assessment decision, you can make an assessment appeal as per SCSB
assessment appeals process.
You have the right to appeal the outcome of assessment decisions if they feel they have been dealt with
unfairly or have other appropriate grounds for an appeal.

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Naming electronic documents

It is important that you name the documents that you create for this Assessment Task in a logical manner.
Each should include:
 Course identification code
 Assessment Task number
 Document title (if appropriate)
 Student name
 Date it was created
For example, FNSACC507 AT2 Workbook Joan Smith 20/10/18
Assessment Instructions
Each assessment task in this booklet consists of the following:
Assessor Checklist
This will be used by your assessor to mark your assessment. Read through this as part of your preparation
before beginning the assessment task. It will give you a good idea of what your assessor will be looking for
when marking your responses.
The Assessor Checklist will be returned to you with the outcome of the individual assessment task,
which will be satisfactory (S) or unsatisfactory (U). If your work has been assessed as being not
satisfactory, your assessor will include written feedback giving reasons why.
Depending on the task, this may include

 resubmitting incorrect answers to questions (such as short answer questions and case studies)
 resubmitting part or all of a project, depending on how the error impacts on the total outcome of the task
 redoing a role play after being provided with appropriate feedback about your performance
 being observed a second (or third time) undertaking any tasks/activities that were not satisfactorily
completed the first time, after being provided with appropriate feedback.
Assessment Task Information

This gives you:
 a summary of the assessment task
 information on the resources to be used
 submission requirements
 re-submission opportunities if required.
Assessment Task Instructions

These give questions to answer or tasks which are to be completed. Your answers need to be typed up
using software as indicated in the Assessment Task Instructions.

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If you are submitting electronically, consider giving the document a file name that includes the unit
identification number, the task number, your name and the date.

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Assessment Task 1:
Task summary
This is an open book test, to be completed in the classroom. You need to answer all of the written questions
correctly.
Required
 Access to textbooks/other learning materials
 Computer and Microsoft Office
Access to the internet
Submit
 Answers to all questions
Assessment criteria
All questions must be answered correctly in order for you to be assessed as having completed the task
satisfactorily.
Re-submission opportunities
You will be provided feedback on your performance by the Assessor. The feedback will indicate if you have
satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any
part of this task or if you have any learning issues or needs that may hinder you when attempting any part of
the assessment.

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Written answer question guidance

The following written questions use a range of “instructional words” such as “identify” or “explain”, which tell
you how you should answer the question. Use the definitions below to assist you to provide the type of
response expected. Note that the following guidance is the minimum level of response required.
Analyse – when a question asks you to analyse something, you should do so in in detail, and identify
important points and key features. Generally, you are expected to write a response one or two paragraphs
long.
Compare – when a question asks you to compare something, you will need to show how two or more things
are similar, ensuring that you also indicate the relevance of the consequences. Generally, you are expected
to write a response one or two paragraphs long.
Contrast – when a question asks you to contrast something, you will need to show how two or more things
are different, ensuring you indicate the relevance or the consequences. Generally, you are expected to write
a response one or two paragraphs long.
Discuss – when a question asks you to discuss something, you are required to point out important issues or
features and express some form of critical judgement. Generally, you are expected to write a response one
or two paragraphs long.
Describe – when a question asks you to describe something, you should state the most noticeable qualities
or features. Generally, you are expected to write a response two or three sentences long.
Evaluate – when a question asks you to evaluate something, you should do so putting forward arguments
for and against something. Generally, you are expected to write a response one or two paragraphs long.
Examine – when a question asks you to examine something, this is similar to “analyse”, where you should
provide a detailed response with key points and features and provide critical analysis. Generally, you are
expected to write a response one or two paragraphs long.
Explain – when a question asks you to explain something, you should make clear how or why something
happened or the way it is. Generally, you are expected to write a response two or three sentences long.
Identify – when a question asks you to identify something, this means that you are asked to briefly describe
the required information. Generally, you are expected to write a response two or three sentences long.
List – when a question asks you to list something, this means that you are asked to briefly state information
in a list format.
Outline – when a question asks you to outline something, this means giving only the main points, Generally,
you are expected to write a response a few sentences long.
Summarise – when a question asks you to summarise something, this means (like “outline”) only giving the
main points. Generally, you are expected to write a response a few sentences long.

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Assessment Task 1 Instructions

Provide answers to all of the questions below:
1. Describe the concept of cost behaviour.

2. Explain why it is important to understand cost behaviour.
3. Describe two cost behaviour characteristics of fixed costs.
4. Describe two cost behaviour characteristics of variable costs.
5. Describe the purpose of costing systems in a workplace.
6. Discuss the differences between financial accounting and cost accounting.
7. Identify the four basic steps in accounting to determine process cost.
8. What are Critical success factors (CSFs), and how do they define key management information
requirements?
9. Discuss a benefit of budgeting.
10. Explain the concept of a top down budget approach.
11. Explain the concept of a bottom up participative budget approach.
12. List at least three principles that should be observed when developing budgets.
13. Describe the concept of variance analysis in management accounting.
14. Provide two examples of commonly derived variances in variance analysis.
15. Give two reasons why variance analysis may not be a useful tool.
16. Explain the concept of horizontal analysis and give two reasons why this is useful.

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Assessment Task 2:
Task summary
For this assessment task you are required to review five case studies and complete the tasks outlined. One
of the case studies will also require you to demonstrate your oral communication skills. This assessment is
to be completed in the simulated work environment in SCSB.
Required
 Access to textbooks/other learning materials

 Computer with Microsoft Office and internet access
Deliver
 Meet with the company’s bookkeeper (your assessor).
Submit
 Prepare an Email with the following attached:

o Word document (FNSACC507 AT2 Activities) with answers to activities 1,2,3,6,7,10,11.
o Excel Workbook (FNSACC507 AT2 Workbook) with separate Worksheets for activities 4,5,8.
Assessment criteria
For your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all
of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete
further assessment to demonstrate competence.
Re-submission opportunities
You will be provided feedback on your performance by the Assessor. The feedback will indicate if you have
satisfactorily addressed the requirements of each part of this task.
If any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you
written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
You have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with
You are encouraged to consult with the assessor prior to attempting this task if you do not understand any
part of this task or if you have any learning issues or needs that may hinder you when attempting any part of
the assessment.

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Assessment Task 2 Instructions

Review the following information:
Case study 1
Mehil owns a taxi business in Newcastle. He recently expanded his business by including limousines.
Mehil’s accountant has provided the following information on monthly revenues and costs:
 The taxi division has monthly revenues of $3,475,000
 The Limousine division generates revenues of $375,000.
 Expenses of $2,656,750 were allocated to divisions based on the number of kilometres travelled.
Mehil has heard about Activity Based Costing and wants to know what benefits it could provide, so he has
obtained the following monthly information on expenses for NSW:
Taxis Limousines
Bookings 44,000 1,500
Kilometres 1,200,000 150,000
Driver hours 67,500 10,000
Mehil has identified that the main activity cost areas include salaries, vehicle costs and booking fees.
Salaries $1,360,000
Booking fees $22,750
Fuel $1,193,000
Call centre booking fees $45,500
Vehicle maintenance $35,500
Complete the following activities:

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1. Identify the appropriate cost pools and calculate the appropriate driver rates for the activities
listed above.
You may wish to use the following table in your answer
Cost pool Driver Driver unit Driver rate
Create a Word document for your response to this and the following activities.
Name this document FNSACC507 AT2 Activities.
1. Using ABC costing, prepare a product line profitability report.

Show all workings in your answer and ensure you have reconciled data to ensure accuracy of
calculations.
2. Discuss two key observations identified from your calculations.

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Case study 2
Tomorrow Aged Care (TAC) builds and runs aged care centres.
TAC runs on very tight budgets, and a fixed construction cost for each centre of $250,000 is set.
Once TAC raises $300,000, they commission construction on the next centre.
Recently, TAC’s CFO undertook a project to determine variances to the standard construction budgets set.
Projects are expected to be completed in 26 weeks and use the following standards.
Cost Item Standard Cost Standard quantities

Bricks $500 per 1,000 bricks 50,000 bricks
Timber $15 per square metre 1,000 square metres
Pre-Fabricated Walls $10,000 per wall 8 walls
Other fixed costs $45,000 Per construction project
Labour – builders $55 per hour 800 hours
Labour – specialists $70 per hour 400 hours
Sundries $5,000 per construction project
Fees, permits and insurance $10,000 Per construction project
Recently GAC completed construction on a new centre in Ballarat in regional Victoria, and the following
information was obtained:
 The project commenced on 1 June and was completed 32 weeks later.
 GAC decided to purchase all materials from the same supplier. GAC purchased 75,000 bricks at a
total cost of $36,000 and 2,000 square metres of timber for $32,000.
 GAC purchased the required pre-fabricated walls were purchased for $80,000.
 The balance of project costs, including other fixed costs of $47,500 totalled $58,000.
 Overall labour costs on the project were $70,000 for 1,250 hours of labour, with an even split of
hours between builders and specialists engaged.
3. Calculate the total direct materials price and efficiency variances.

Create a new Excel Workbook and calculate your response to this activity in a Worksheet.
Name this Workbook FNSACC507 AT2 Workbook and name the Worksheet Activity 4.
4. Calculate the total labour price and efficiency variances

Calculate your response to this question in a separate Worksheet named Activity 4
5. Calculate the project overhead variance. Show your calculations.

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Case study 3
Ethereal Enterprises manufactures microchips for computers. A market survey shows that a 10% reduction
in price will result in a 30% increase in sales, with variable costs per unit remaining unchanged. On the other
hand, an investment of $30,000 in machinery would reduce variable costs by $3 a unit.
6. Determine the sales volume and break-even point for each option given Majestic currently sells
10,000 units @ $20 each, has variable costs of $80,000 and fixed costs of $40,000.
Ensure you have checked all calculations for accuracy prior to submission.
7. Using the current information provided in a) as the budget for month 1 and the additional
information below, complete the 12-month budget for Majestic Enterprises. Ensure that you
have checked all calculations for accuracy prior to submission.
 Sales expected to rise monthly by 10%
 Variable costs to increase by 5% per month to the 6th month and then stabilise.
 Fixed costs to remain stable for the first 9 months then record an increase of $10,000.
 Admin expenses of $5,000 to be incurred in the first month with a 2% increase per month.
Calculate your response to this question in a separate Worksheet in FNSACC507 AT2

Workbook.
Name this Worksheet Activity 8.

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Case study 4
Mixed Meats Industries is a fine food company producing burgers and sausages.
It has 300 staff who work 8 hours a day, 5 days a week for 50 weeks per year.
The demand for burgers and sausages does not exceed 50,000 and 150,000 kilos respectively per year.
Currently, Mixed Meats receives $10 for one kilo of burgers, and $15 for one kilo of sausages.
Fixed factory overheads are applied on the basis of direct labour hours @$1 per hour.
Mixed Meats Industries is interested in maximising its profit and wants to know what the most profitable mix
of sausages and hamburgers.
8. Meet with the company’s bookkeeper (your assessor).

In order to determine the most profitable product manufacturing mix, you will need more information than
what is included in the case study above.
You will gather that information by consulting with the company’s bookkeeper.
Before going to this meeting, make sure that you know which information you need from the bookkeeper.
During the meeting, demonstrate effective communication skills including:

 Using tone and pace appropriate to the audience
 Using non-verbal communication to assist with understanding
 Asking questions to identify required information
 Responding to questions as required
 Using active listening techniques to confirm understanding
9. Calculate the maximum profit and most profitable mix of products.

Show your calculations.

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Case study 5
Gluten Free Gangsters (GFG) is a small company that imports, manufactures and wholesales gluten free
foods. GFG products are minimally processed and contain no artificial additives. In a world with growing
interest in premium quality foods, GFG invests heavily in research and is building a reputation for its quality
goods.
GFG has always invested heavily in Research and Development, and the R&D budget is currently $20
million per annum. It employs a senior food scientist, five junior scientists and two administration staff. The
goal of the R&D department is to develop high quality new products that are then tested and found to be
acceptable for human consumption by an external quality testing agency. The agency provides specific
feedback on the products and has even rejected products in the past. A rejected product results in high
additional costs or severe losses to GFG.
10. Identify two key KPI’s for the Board to consider for each of the internal process and the learning and
growth quadrants of the balanced scorecard for the R&D department.

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Southern Cross School of BusinessSouthern Cross School of Business

CRICOS Provider Code: 03523D | RTO Id: 41253 | ABN: 95155625924

FNSACC507 Provide management accounting

Southern Cross School of Business

Southern Cross School of Business

Assessment Task Overview

Southern Cross School of Business

Naming electronic documents

Depending on the task, this may include

Assessment Task Information

Assessment Task Instructions

Southern Cross School of Business

Southern Cross School of Business

Southern Cross School of Business

Written answer question guidance

Southern Cross School of Business

Assessment Task 1 Instructions

1. Describe the concept of cost behaviour.

Southern Cross School of Business

 Access to textbooks/other learning materials

 Prepare an Email with the following attached:

Southern Cross School of Business

Assessment Task 2 Instructions

Complete the following activities:

Southern Cross School of Business

1. Using ABC costing, prepare a product line profitability report.

2. Discuss two key observations identified from your calculations.

Southern Cross School of Business

Cost Item Standard Cost Standard quantities

3. Calculate the total direct materials price and efficiency variances.

4. Calculate the total labour price and efficiency variances

5. Calculate the project overhead variance. Show your calculations.

Southern Cross School of Business

Southern Cross School of Business

Calculate your response to this question in a separate Worksheet in FNSACC507 AT2

Southern Cross School of Business

8. Meet with the company’s bookkeeper (your assessor).

During the meeting, demonstrate effective communication skills including:

9. Calculate the maximum profit and most profitable mix of products.

Southern Cross School of Business

Southern Cross School of Business

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