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Good evening , I would like the work by Friday noon if it is easy and without plagiarism. The turnitin will be done by me . Also there is an excel file together with the word .Thank you very much ● Bear in mind that you were writing a report to business associates who have some relevant knowledge of management accounting but are not experts.
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Athens Metropolitan College
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Task 1:
Type of work: Individual
Assignment Word Count: 2,000 words
Case Study/ Reference Weighting: 50%
Assessment work:
Introduction
Brick _ by Brick ( BBB ) is a construction company that provides a range of construction
services to the public. They were recently asked to bid for garage conversions ( M C) and
property extensions ( E A) and found that they were winning fewer MG contracts than
expected. It is BBB ‘s policy to price all of its services at the budgeted total cost, plus 50%.
Overheads are currently absorbed based on hours worked. The BBB believes that a move to
activity-based costing ( ABC ) to absorb overhead costs would reduce the costs associated
with MAs and thereby make them more competitive. You are provided with the following data:
Category of
Annual G.E in
General Expenses
euros
Inspections
90 . 000
Cost guide
Number per year
Number of
500
inspections
Engineers
70 . 000
Number of designs
250
Other costs – real
240 . 000
Working hours
40 . 000
estate
Total
400 . 000
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Athens Metropolitan College
A typical MG costs €3,500 in materials and takes 300 hours of work to complete. A MO only
requires one site visit by a supervisor and only needs one planning document. A typical EA
costs €8,000 in materials and takes 500 hours to complete. A typical EA requires six site visits
and five planning documents. In all cases, the work is paid at 15 euros per hour.
Required:
You will need to submit two files. A Word file and an Excel file.
Excel file:
Design an Excel spreadsheet containing analysis for:
(a) cost and final price for MG and EA using labor hours to absorb overhead.
(b) cost and final price for MG and EA using activity costing to absorb overhead.
Word file :
Assuming that the cost of an MG decreases by almost 7% and the price of an EA increases
by about 2% as a result of the change to ABC , suggest possible pricing strategies for the two
products that BBB sells and suggest two reasons beyond the high prices , which are
responsible for the current reduced sales of MG.
• Develop the main findings and implications of your analysis in a brief report addressed to
management.
• Develop the main findings and cases that each of the costing methods has to address Brick
by Brick (BBB) in a brief report, addressed to management, including your own proposal.
• State the differences between activity-based costing (ABC) and traditional costing methods.
• State the differences between Financial and Managerial Accounting.
please note
executive needed summary for such a short report
● Word count does not include references from the bibliography.
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Athens Metropolitan College
● Bear in mind that you have been writing a report to business partners who have some
relevant knowledge of management accounting, but are not experts.
● It may be useful to use extracts from your spreadsheet in your report – but such extracts will
not count towards the word count.
● You don’t need a cover or index. Include a title for your report, then start typing your text.
Proposed structure
The structure of the report is up to you, but as a guide, a possible structure is:
1. Introduction (150 words)
• Overview of the report and its structure.
2. Main body (1,700 words)
• Present the specific cost absorption and ABC solutions
• Explain the differences between the 2 methods and why ABC might be a better tool for their
business
• Suggest possible pricing strategies for the two products that BBB sells and note reasons
other than high prices for GC ‘s current poor sales
• State the differences between activity-based costing (ABC) and traditional costing methods.
• State the differences between Financial and Managerial Accounting.
3. Conclusion (150 words)
• Summary of your report
4. Reference list – Bibliography
Scoring
Grading criteria
Weighting
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Athens Metropolitan College
Introduction
5%
Correct costing calculations with the 2 methods.
excel file easy to read and does it contain the
appropriate information in tabular format?
20%
Excel ‘s automations been used correctly ?
Is there sufficient explanation of the differences
between the 2 methods and why ABC might be
preferred?
There is a proposal regarding pricing strategies
and detailed documentation for reduced MG
sales.
The student has suggested sufficiently
the difference between activity-based costing
(ABC) and traditional costing methods.
The student has suggested sufficiently
the difference between Financial and Managerial
Accounting.
10%
Conclusion
Bibliography: Citations and use of Harvard
Citation Style (in-text citations and reference
list)
5%
10%
Structure, presentation and academic writing
5%
4
20%
10%
5%
5%
5%
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