Background
You were recently employed as a management accountant in a listed firm on the ASX. The Managing
Director of your company has formed a small taskforce to explore the possibility of implementing a
Balanced Score Card (BSC) system in the company. You are assigned to work with others in the
taskforce due to your management accounting background.

Required
Your group is required to prepare a report to provide advice on the suitability of the BSC for an ASXlisted company, which is selected by your group. The company selected must be “unique” and it is
NOT allowed to be the same as another group.

NOTE – You must check your selected ASX listed company on shared excel sheet. If the company has
already been selected, then you must go back and select another ASX listed company.

The report must cover the following key points:
a) A description of your company.
b) Calculation of Return on Investment (using net profit divided by total assets) and a discussion of
the ways to improve ROI.
c) A description of the Balanced Scorecard (BSC) and its key components.
d) A description of the ways the implementation of the BSC can improve the competitive
advantage(s) of your company.
e) A discussion and conclusion of the overall suitability of BSC to your selected company

 

Solution:

Week 7 (Topic 6) – Activity-based costing

Activity	Cost (C)	Driver (D)	Cost to be allocated to
			Cheap	Econo	Deluxe	Total
			Z = C x D / ΣD
Material handling	225,000	Number of parts	100,000	75,000	50,000	225,000
Material insertion	2,475,000	Number of parts	1,100,000	825,000	550,000	2,475,000
Automated machinery	840,000	Machine hours	240,000	360,000	240,000	840,000
Finishing	170,000	Labour hours	100,000	50,000	20,000	170,000
Packaging	170,000	Orders shipped	100,000	50,000	20,000	170,000
Total manufacturing cost	3,880,000		1,640,000	1,360,000	880,000	3,880,000
Units manufactured			10,000	5,000	2,000
Cost per unit			164	272	440

 

Hence the cost per unit of cheap is $164.

 

Purchase Complete Online Tutoring Solution