ASSIGNMENT COVER PAGE

No Student Name Student ID

.
1.

LECTURER NAME: MS SARANIAH

PROGRAMME TITLE: MASTER OF BUSINESS ADMINISTRATION

SUBJECT CODE & TITLE: ACC501 BUSINESS ACCOUNTING AND FINANCE

INTAKE/SESSION: APR/MAY/JUNE/AUG 2022/SESSION 2023

ASSIGNMENT: (CASE STUDY – 40% AND PRESENTATION – 20%) = 60%

Submission Date: 5th February 2023 @ 5pm - Upload in Google Classroom

Plagiarism: The University will not tolerate cheating, or assisting others to cheat, and views
cheating in coursework as a serious academic offense. The work that a student submits for
grading must be the student’s own work, reflecting his or her learning. Where work from
other sources is used, it must be properly acknowledged and referenced.
WRITTEN ASSIGNMENT - CASE STUDY (40%)

BFrame Co. is formed of two "autonomous divisions, Timber and steel, and manufactures
components for use in the Construction industry. BFrame Co. has always absorbed
Production overheads to the cost of each product based on machine hours.
Timber Division
Timber Division manufactures timber frames used to support the roofs of new houses. The
timber, which is purchased pre-cut to the correct length, is assembled into the finished frame
by a factory worker who fastens the components together. Timber Division manufactures six
standard sizes of frame which is sufficient for use in most newly built houses.
Steel Division
Steel Division manufactures steel frames and roof supports or use in small commercial
buildings such as shops and restaurants. There is a large range of products, and many
customers also specify bespoke designs for short production runs or one-off building projects.
Steel is cut and drilled using the division's own programmable computer-aided manufacturing
machinery (CAM) and is bolted together or welded by hand.
Steel Division's strategy is to produce novel bespoke products at a price comparable to its
competitors' simpler and more conventional products. For example, many of Steel Division's
customers choose to have steel covered in one of a wide variety of coloured paints and other
protective coatings at the end of the production process. A subcontractor performs this off-
site, after which the product is returned to Steel Division for despatch to the customer.
Customers are charged the subcontractor’s cost plus a 10% markup for choosing this option.
The board of Steel Division has admitted that this pricing structure may be too simplistic and
that it is unsure of the overall profitability of sales of some groups of products or sectors of
the market.
Recently, several customers have complained that incorrectly applied paint has flaked off the
steel after only a few months' use. More seriously, a fast-food restaurant has commenced
litigation with BFrame Co. after it had to close for a week while steel roof frames supplied by
Steel Division were repainted. Following this, the production manager has proposed
increasing the staff inspecting the quality of coating on the frames and purchasing expensive
imaging machinery to make inspection more efficient.
BFrame Co.'s chief executive officer (CEO) has approached you as a financial consultant for
your advice. 'At a conference recently', he told you, 'l watched a presentation by a CEO at a
similar business to ours talking about using activity based costing (ABC) and how over
several years the adoption of activity based fnanagement (ABM) had helped them to improve
both strategic and operational performance.'
' I'd like Co to know more about ABC and ABM, and know whether they would be useful for
BFrame Co.', he said.

You are provided with extracts of the most recent management accounts for the Timber and
Steel Divisions:

Revenue and Costs of the Division

Division (total) Timber Steel
($000) ($000)
Revenue 50,000 48,000
Material 10,000 6,400
Direct labour 4,000 3,000
Analysis of production overhead
BFrame Co. ($000)
Set-up for CAM machinery 2,000
Machining time 6,000
Storage of goods awaiting from subcontractors 2,000
Inspection and testing 4,000
Subcontract costs 8,000
Total production overhead 22,000

Activities of each division

Division Timber Steel
Number of CAM machinery set-up 15 times 5 times
Number of machine hours 20,000 hours 25,000 hours
Direct labour hours 20,000 hours 15,000 hours
Number of sub-contractor orders 100 orders 400 orders
Material per unit 40 meters 50 meters
Output 100,000 units 80,000 units

Required:
(a) Using the financial details above, demonstrate to the CEO how traditional costing and
Activity Based Costing (ABC) differ. (10 marks)
(b) Advise the CEO are the requirements for implementing ABC in a manufacturing firm.
(15 marks)
(c) Discuss the improvements that the implementation of Activity Based Management
(ABM) could be used to improve business performance. (15 marks)
[Total: 40 marks]
Format requirements:
Requirements: Maximum 2000 words (including the numbers) using Font 12, TNR, 1.5 spacing.
You are advised to use credible and suitable secondary data and information from reliable
organisation websites, reports, case study, journal articles, or any other sources to support your
answers. Use university recommended citations and referencing method.
PRESENTATION (20%)

Group assignment brief:

 You are required to prepare a GROUP PRESENTATION (Group of 4 members) based on

the given topic or questions.
 Your presentation must be creative and innovative and should have a maximum of TEN (10)
slides, and the presentation should not exceed six minutes.
 Each group must submit one copy of their group assignment slides in pdf format before the
presentation with the marking rubric for each student.
 The presentation will be held during the class hour as per the assigned time.
 The content of your presentation should reflect good research done on the above topic before
presenting it in a group.
 Use appropriate citations and referencing methods.
 Ensure all group members are involved in preparing and presenting your assignment.

Group Assignment Question:

Choose and describe the background a fashion or sportswear business in Malaysia. Discuss FOUR (4)
perspectives of the Balance Scorecard with TWO (2) examples of goals, measurements, and targets
for each perspective for the business.

[Total: 20 marks]
Marking Scheme: Written Assignment

Master of Business Administration

General Comments:
Student Name:

Marking Scheme: Group Presentation

Master of Business Administration