APPLICATION AND ANALYSIS OF MANGERIAL ACCOUNTING PRACTICES IN A

REAL COMPANY

Objectives:

 To understand cost management concepts, value chain concept and activity based
costing.
 To apply performance measurement techniques in assessing the performance of an
organization.

Requirements:

Each group will be given a company and obtain its annual reports by going to the company’s
website. Download the annual report for the most recent year. You are required to answer the
following questions:

A. Cost Management Concepts and Application in a real company.

1. Describe the product that is being produced and the company that produces it.
2. Describe three value chain business activities (choose any three) that this product
would pass through from its inception to its ultimate delivery to the customer.
3. List and explain two costs that would be incurred in each of the three business
activities in the value chain.
4. Classify each cost you identified in the value chain as either being an inventoriable
product cost or a period cost. Explain your justification.
5. A cost object can be anything for which managers want a separate measurement of
cost. List and explain two different potential cost objects other than the product itself
for the company you have selected.
6. State and explain whether the two costs identified in 5. above is either a direct cost or
an indirect cost
7. Find the company’s segment information; it should be in the “Notes to Consolidated
Financial Statements”. Look for the word “segment” in a heading; that is usually the
section you need. List the segments as reported in the annual report. Make a table
listing each operating segment, its revenue, income and assets.
8. Use the data you collected in question 7 to calculate each segment’s sales margin,
interpret your results.
9. Use the data you collected in question 7 to calculate each segment’s capital turnover,
interpret your results.
10. Use the data you collected in question 7 to calculate each segment’s ROI, interpret
your results.
  Final report need to be submitted according to the date mentioned in the
course outline. (Assessment: 10 marks)

The paper should be written with 1.5 spacing and Times New Roman font size 12,
stapled with the appendix and a cover page listing the title, group members’ matric.
course title and the date. The report should NOT exceed 15 pages excluding the
appendix and references (if any).
Appendix: Append the relevant documents (if any) of the technique
 Content 7 marks
 Presentation 1.5 marks
 Language 1.5 marks
Notes:
Content refers to depth of analysis and adequacy.
Presentation refers to good report format – Table of contents, use of appendices, list
of references, etc.
Language refers to good use of the English language and no typographical and other
errors.

DATELINE: 8TH Jan , 11:59 PM