Table of Contents

I. Introduction:...............................................................................................................3

II. Major Finding:...........................................................................................................4

Scenario 1:.....................................................................................................................4

1. Advantages and disadvantages of planning tools:.............................................4

 Standard cost.....................................................................................................4

 Standard price....................................................................................................4

 Budgets.............................................................................................................. 5

 Balance scorecard..............................................................................................6

2. Calculation:.......................................................................................................6

3. Month to month spending plans available to be purchased income, creation

volume, and every creation source.............................................................................7

4. Coffeegreen’s performance evaluating:.............................................................9

5. Applying and analyze PEST, SWOT and Balance scorecard in Coffeegreen

Ltd 10

Scenario 2..................................................................................................................... 13

1. Comparing the different of Coffeegreen and Galaxy Ltd. in management

accounting systems:..................................................................................................13

2. Analyze the correspondent of both company management accounting:..........14

3. Evaluation for Coffeegreen and Galaxy Ltd. management accounting:..........15

III. Conclusion:..........................................................................................................17

IV. Reference:............................................................................................................18

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I. Introduction:
This report will discuss the advantages and disadvantages of Coffeegreen Ltd.'s four
orchestrating devices, including legal expenses, standard worth, spending plans, and a
harmony scorecard. Furthermore, this report will dissect and survey how the organization
applies those devices to Coffeegreen Ltd's execute financial issue. To summarize,
Coffeegreen and Galaxy Ltd. will have connections to how board accounting will be used
to handle the association's economic problems.

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II. Major Finding:
Scenario 1:
1. Advantages and disadvantages of planning tools:
Standard cost, expected value, spending plans, and an equilibrium scorecard are
the four arranging devices. Their preferences and annoyances will be mentioned
cry.

 Standard cost
According to Horngren, Datar, and Rajan, the standard cost is the cost of a clearly
defined unit of yield (2015).

 There are a few key features of standard cost:

- Improve expense control: The company could improve expense control by
using standard costs, and it could condemn the main's reasonableness in controlling
the prices for which they must accept risk.
- Give supervisors access to a sensible and accommodating information
arrangement for less troublesome decisions and orchestrating.
- Standard costs can uncover, and it certainly is not difficult to use books that
retain the cycle in cost accounting.
 Standard price blocks:
- The standard cost for standard-setting is complicated since standard-setting
estimates require an enormous amount of capacity. In addition, this evaluation will
take a great deal of time and money (iedunote.com, n.d.)
- It lowers and limits the sensitivity to spending since the supervision of
delegates does not report any exceptions and differences.

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 Standard price
According to Horngren, Datar, and Rajan (2015), the legal expense is the amount
of money a company is willing to pay for an information center.

 The benefits of standard pricing are as follows:

- Proper evaluation aids in the planning of future trades.
- The standard cost will determine the advantage and the best expense for the
item by calculating, limiting losses, and adding the benefit.
 The disadvantage of standard cost:
- Requires a more sketched and ideal opportunity to establish a standard cost.
- The cost of insuring and maintaining the items could be met.

 Budgets
Spending plans are a statistical clarification for a suggested administrator's action
plan in a period, as well as guidance for finally working out actions to be
implemented to carry out the agreement in place (Horngren, Datar, & Rajan,
2015).

 Spending plan experts in particular:

- Budgets aid in the creation of great activity records in the association's
business.
- It is reasonable in terms of the reality that it can appear at a variety of board
levels.
- There is a greater awareness of the laborers in the affiliation's goal. As a
result, a few game plans are devised to help them reach their goals.
- Budgets contribute to enhance and energize the relationship between the
association's supervisory authority and their representatives in the spending trying
to arrange measures.
 The detailed expenditure plans are:

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- It is time–consuming. Because spending plans require a large amount of
information as often as they are necessary to find out which financial resources are
most appropriate and reasonable
- Budgets can pose a substantial problem if an unsustainable spend structure
applies that will restrict and decrease the creative suggestion between ages.

 Balance scorecard
According to Pandey (2015), a balanced scorecard represents a configuration that
combines financial, customer's, cycle and understanding, and enhancement of money
related and non-financial indicators through four different perspectives in a seclusion
scoreboard. The association pattern and decision and outcome will be combined with a
good scorecard. They can therefore follow the implementation of the association and
provide control and evaluation information.

 The advantages of the fair scorecard

- Various devices could have an impact on the new advancement and the
interdependence of the company.
- A balanced scorecard aids in the coordination of the organization's objectives and
the creation of motivational factors for workers to enhance their productivity.
 The disadvantages of the balanced scorecard
- It is time-intensive to have the choice to switch and appropriate with particular
associations.
- It is not easy to recognize and reward a worker's accomplishment because a good
scorecard considers the organization's arrangement as a whole.

2. Calculation:
 Calculating the assigned subjects:
 The standard cost for 1kg of coffee:
- Direct material cost: $2/1kg x 1.4kg = $2.8
- Direct labour cost: 0.6 labour hour x $5 per hour = $3

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 - Predetermined overhead rate: (100% of labour costs): 100% x $3 = $3
 Standard cost:

Direct material + Direct labour + overhead cost = $2.8 + $3 + $3 = $8.8

 The cost for contract No.348:

- Overhead allocated = Overhead rate x Quantity of order = $3 x 15,000 = $45,000
- Under allocated overhead: Actual overhead – Overhead allocated

= $70,000 - $45,000 = $25,000

 Cost for contract No.348: $8.8 x 15,000 + $25,000 = $157,000

Coffeegreen’s revenue: Quatity demanded x Selling price

Quantity demanded (kg) Selling price ($) Revenue ($)

300,000 10 3,000,000
280,000 11 3,080,000
250,000 12 3,000,000
240,000 13 3,120,000
200,000 14 2,800,000
Coffeegreen's rice market opportunities in 2021 have been assessed.

As a result, the selling price that increased benefit for Coffeegreen organization, which is
the best option, is $13.

3. Month to month spending plans available to be purchased income, creation

volume, and every creation source:

In light of the information from the task, the month-to-month deals volume is 1.5
occasions higher than the low one in the high season.

Assuming a low season month deals volume is X, in this manner, the high season is 1.5X.

In fact, there is absolutely a half year in high season and a half year for low season.

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The total budgeted sales:

(6 * 1.5X) + (6 * X) = 240,000

 6X + 6X = 240,000

 X = 20,000

 Which means in high season, budgeted sales volume is X = 20,000 units and for
low season is 1.5X = 30,000 units.

According to Scenario 1, monthly budgeted sales of Coffeegreen is calculated by:

- Sales revenue = Sales volume x $13

- Production volume (PV) = 40% Sales volume of the following months + 60%
Sales volume of current month.

- Production resource:

• Raw materials = PV x $2.8

• Labour = PV x $3

• Variable overheads = PV x $3

The following table is the monthly budgets of Coffeegreen in the first quarter of 2021

Month Jan Feb March Apr May Jun

Budgeted sales volume 30,000 30,000 30,000 30,000 20,000 20,000
(units)
Budgeted sales 390,000 390,000 390,000 390,000 360,000 360,000
revenue ($)
Budgeted production 30,000 30,000 30,000 26,000 20,000 20,000
volume (units)
Budgeted Raw 84,000 84,000 84,000 72,600 56,000 56,000
production materials

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 resource Labour 90,000 90,000 90,000 78,000 60,000 60,000
($) Variable 90,000 90,000 90,000 78,000 60,000 60,000
overhead
s

Month Jul Aug Sept Oct Nov Dec

Budgeted sales volume 20,000 20,000 20,000 20,000 30,000 30,000
(units)
Budgeted sales revenue 360,000 360,000 360,000 360,000 390,000 390,000
($)
Budgeted production 20,000 20,000 20,000 24,000 30,000 30,000
volume (units)
Budgeted Raw 56,000 56,000 56,000 67,200 84,000 84,000
production materials
resource Labour 60,000 60,000 60,000 72,000 90,000 90,000
($) Variable 60,000 60,000 60,000 72,000 90,000 90,000
overheads

4. Coffeegreen's performance evaluation:

In this case, the situation is viewed as detrimental to Coffeegreen's organization. In
March 2021, the organization is suffering as they raise the price of coffee from 2.8$/kg to
2.3$/kg, which affects the yield cost and causes the benefit to decline. Representatives'
actual working hours increase by 0.1 hours when they produce 1kg of coffee. This
problem lengthens the handling time and reduces the number of yields. Coffeegreen clerk
has perceived that issue and itemized month to month that issue to the organization board
to find courses of action. When in doubt, the accountant can use standard costs for work,
materials, and overheads and using the report on the month-to-month spending plans
since it is clear and think. With these orchestrating gadgets, the association could, without
8
a doubt and quickly find the internal cycle issues, similarly as trading with suppliers for
the lower material cost.

5. Applying and analyze PEST, SWOT, and Balance scorecard in Coffeegreen Ltd
With regard to PEST, this methodology would be applied to external factors that affect
their practice directly or implicitly Coffeegreen.

 Politic

Circumstance 1, the Vietnam government in the Vietnam market insisted on the plan,
which is most valuable for CoffeeGreen things. The association from several countries
could thus extend some of the essential grounds of the association. In addition, the public
position must increase the interest in using things in the country as aid. In addition, the
cost reduction also reduces the cost of the item and, as a result, attracts more clients.
However, more portions of foreign countries and threats of rivalry emerged from the
embraced CPTPP and EVFTA.

 Economic

The Vietnam economy has essentially expanded and developed in terms of currency
angles, and the GDP rate in 2019 was 7.48%. Due to the impact of Covid-19, in 2020, the
GDP rate is down to 3,82% (Tradingeconomics.com, 2020). Because of the overall crisis,
different associations cannot enter the market, and CoffeeGreen is also a local
association. This is definitely a favorable situation for Coffeegreen to cooperate.

 Social

As Coffeegreen is a Vietnamese business-keeping association, they understand the

inclination of customers to the espresso taste. In addition, the association organizes a
contour and examines the trends of the people. Since Coffeegreen is present in Vietnam,
the costs of information materials can be reduced by trading with providers in the
country. Social is an invaluable factor of the Coffeegreen company in this respect.

 Technology
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Finally, as mentioned in Scenario 1, Coffeegreen is making significant progress from the
German parent association. Coffeegreen is more based on this than different
technological arguments. This is a factor. However, Germany has improved in
organizations and the movement business on the planet. Germany is a developed country.
As such, it has the highest and most advanced food creation development.

Concerning SWOT assessment, it would be applied after the PEST examination.

Strengths Weakness
- The parent organization's high level of - Congresspersons' presentations are
innovation (Germany). still shaky. As a result, the legislators'
- Food requests are consistent during demeanor suffers.
Covid-19. - Marketing is a failure.
- Vietnam has a plethora of coffee shops.
- Benefits of being a homegrown
organization (lower material cost, modest
work cost, and so on).
Opportunities Threats
- The strategy of promoting homegrown - There could be an influx of
products. competitors from unfamiliar countries.
- Following the CPTPP and EVFTA, - The state of technology is compared to
there are no trade barriers. other countries such as Brazil,
- A rate of economic and population Colombia, etc.
development is established.
To summarize, Coffeegreen execution isn't convincing because all experiences are lower
than expected by the sensible scorecard.

With the evaluation of two gimmicks, it is possible to see that Coffeegreen has various
focal points in the Vietnam market. In any case, they are currently experiencing setbacks.
There are a couple of proposals for Coffeegreen to improve the board demonstration to
recover the business.

Aspects Measurement

- Lower assembly costs while increasing

Financial pay.

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 - Increase your income.
↑

- Investigate and fully understand client

methodologies and requirements.
Customer
- Increase employee job satisfaction
with the product.
↑
- Enhance internal execution.
- Items of higher quality.
Internal process
- They are increasing the effectiveness
of consulting.
↑
- Increasing the significance of
innovation.

- Improve by applying for another

Learning and growth
program on the pilot project or enlisting
the help of another family counseling
department head.

Scenario 2
1. Comparing the differences of Coffeegreen and Galaxy Ltd. in management
accounting systems:
Coffeegreen Galaxy Ltd.
Even though some organizations certified the government on CPTPP
and EVFTA, the two organizations must face threats from distant
Financial issues countries. Numerous affiliations have the unique optimum environment
in import, the concept of things and institutions, and more than a local
one.

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 - Lower quality costs: the basic
standard of quality is set => easy to
control costs.
- To control the actual cost, the
unrefined materials, work, and related
machines must have standard costs.
- Set standard costs => standard run
and everyday expenses easy to
control. - Begin preparing operations
and maintenance money-related plans
and contrast evaluations specifically
Management
for consistent => Director-General to
accounting systems
look at and address the problem.
- A monthly report of customer ages
should be completed by the
accountants to collect the deals.
- Suggestion that a drawn-out
competition between farmers should
guarantee the purchases.
- Apply the Five Forces of Porters to
assess the position of an association
and understand the threats of the
enemies
- Under the constant
supervision of the Director,
Business of Galaxy Ltd
controlled the monetary plans
closely. It used them based on
the expenditures designed to
maintain clients' profile,
expense, salary, and threat.
- Revision and enhancement of
the information systems to
shorten the customer
development cycle hour.
- The general director can
choose to continue to improve
or reduce pay and benefits
reports for each assurance
thing.
- The risk assessment is wholly
transferred to each worker
before the settlement of the
insurance contract.
- To follow the procedure with
an excellent scorecard.

Typical for accountants who the association requires are:

- Truthful: Give accurate and reliable information from the work of association
companies

- Accountability: The consigned work and the off-task to see the association's likely
benefits have been completed.

- Conscientious: in month to month, a broad range of reports could be provided and ideal.

2. Analyze the correspondent of both company management accounting:

 Coffeegreen:

The organization has implemented - various changes for the organization's internal action
measure. A couple of changes should be made to enable the organization to stand up to

12
the Vietnam government's supported CPTPP and EVFTA and supplement the current
new parts in the Vietnam market. Coffeegreen is currently providing extra benefits to its
customers to attract them and develop looming things. As a result, the General Director
should familiarize an organization's accounting structure with improving internal
administration practice as soon as time allows. As stated in the Scenario, the Director
accepts responsibility for purchases, receivables, and item quality to ensure the
organization's standing.

Furthermore, Coffeegreen Director is carefully managing the quality standard for

materials and yields to reduce quality costs. They use a standard costing system to
calculate each delegate's ordinary expense and execution. These practices would reduce
the workers' practicality, and they also denoted an agreement with a farmer to have a
disproportionate cost of pork for materials. Furthermore, to a limited extent, they use
Porter's Five Forces to investigate the inclinations and hindrances factors among
Coffeegreen rivals.

 Galaxy Ltd.:

Galaxy Ltd. still needs to stay in a general business at 1percent due to a similar issue with
Coffeegreen due to the CPTPP and the EVFTA and offer customers first-rate assistance.
CEO Galaxy Ltd. decides to control the profiles, risks, cost, and payment of its clients
and urges them to identify the best targets and make the right choice. By overhauling the
system, the association could make further progress. In addition, the appropriate
scorecard can assist the director in inspecting the Galaxy Ltd case and can help make the
best decision on business development later.

3. Evaluation for Coffeegreen and Galaxy Ltd. management accounting:

The four main instruments used in an organization's accounting are highly finished, all of
which have been considered. Even though the Coffeegreen business 4.0 has started
agitation, they should zero and make and improve the development and online business.
They could offer customers more online products and spread their image public image

13
without an incredibly phenomenal extension. In Galaxy Ltd., on the other hand, you have
to carry out your piece, including 1 percent of the safety of your business. The Galaxy
Ltd. chief style is appropriate to his actual objective, given the circumstances. They
should also agree to a better risk arrangement for the board with a bank. The reparation
and benefit of delegates can be reviewed to ensure the best demonstration to finalize
things.

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III. Conclusion:
With all in mind, the Coffeegreen and Galaxy Ltd. association was equipped with four
mechanical master assemblies. It will generally be seen that Coffeegren does not
persuade these organizational practices, and some changes in specific factors should be
made. In all cases, the control instruments are considered efficient for Galaxy Ltd. I
believe that both associations' pay and advantage will be increased in suggesting a few
game schemes.

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IV. Reference:
1. Horngren, C. Datar, M. & Rajan, M. 2015 Cost Accounting: A Managerial
Emphasis. 15th edn.
2. iEduNote.com. 2020. Standard Costing: Definition, Advantages, Disadvantages.
[online] Available at: https://www.iedunote.com/standard-costing [Accessed 6 May
2021].
3. Pandey, 2015. Balanced Scorecard: Myth And Reality. [online] Available at:
https://www.researchgate.net/publication/228372613_Balanced_Scorecard_Myth_and_R
eality [Accessed 6 May 2021].
4. Tradingeconomics.com. 2020. Vietnam GDP | 1985-2019 Data | 2020-2022
Forecast | Historical | Chart | News. [online] Available at:
https://tradingeconomics.com/vietnam/gdp [Accessed 6 May 2021].

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