ACCT2014 Management Accounting II

Assignment II

Assume that your management consulting team has been engaged to advise the
management of the organization/individual in each of the following cases.

Choose only one of the following problem/cases.

Chapter 12:

Case 31: Alanco - Integrative Case: Relevant Costs, Pricing;

OR
Case 34: Holden Inc. –Make/Buy; Constrained Resource

Chapter 13:

Case 30 – Net Present Value Analysis

Prepare an analysis of the case and a report to management as required in each

separate case. Integrate the answers to the questions in each case in your
submission.
Chapter 12

Case 31 ALANCO CORP

Preparing/Submission of a Bid

Your report must consider all of the following issues

- Relevant costs
- Short-term Decision-making: Special Order/Opportunity Cost
- Qualitative versus quantitative issues: “Branding” and, Loyalty to existing
customers
- Cost in product pricing/Pricing Policy
- Capacity/Capacity Utilization
- New market opportunities
- Organizational reporting and responsibility
- Presentation and use of language

Evaluation will assign marks as follows:

- Introduction
- Problem outline and discussion
- Assumptions/Standards
- Problem Analysis
- Strategic Planning/Analysis
- Order Bid Preparation/Submission
New Product Planning
New Product Pricing
Suggest positions who maybe involved in the process
- Clear and unambiguous recommendations
- Conclusions
Chapter 12

Case 34 Holden Inc.

Make/Buy Analysis/Constrained Resource

Your report must consider all of the following issues

- Relevant Costs for making short-term decisions

- Strategic Planning/Budgeting
- Make/Buy/Outsource
- Qualitative versus quantitative issues
- Segmented Operations/Discontinued Operations
- Cost in pricing
- Organizational reporting and responsibility
- Presentation and use of language

Evaluation will assign marks as follows:

- Introduction
- Problem outline and discussion
- Assumptions/Standards
- Problem Analysis
- Financial Analysis
Plant Closing
Make/Buy
Non-Financial
Suggest positions to whom report may be directed
- Clear and unambiguous recommendations
- Conclusions
Chapter 13:

Case 30 : Net Present Value Analysis

Strategic Decision-making

Your report must consider all of the following issues

- Net present values[NPV]

- Internal Rate of Return
- Strategic Planning
- Capital Budgeting
- Qualitative versus quantitative issues
- Presentation and use of language

Evaluation will assign marks as follows:

- Introduction
- Problem outline and discussion
- Assumptions/Standards
- Problem Analysis
Financial Analysis
Non-financial strategic considerations
- Clear and unambiguous recommendations
- Conclusions