Masters of Business Administration
(International Business)
AC7236
Accounting and Finance for Managers
(Total 50% marks)
COHORT
: 44
SEMESTER
: C 2020/21
LECTURER
: Mr Vijayasekar
DUE DATE
: 21 May 2021
WORD COUNT
: 1,500 Words
This assignment requires students to analyse a range of academic literature
within a defined area of relevance to accounting and finance to develop and
communicate their understanding of the practice and theory within the chosen
topic area.
You are required to choose only ONE [1] question and critically evaluate the
below statement.
Question 1 (50%)
Termi Nator Bhd assembles computer equipment from bought in components
and distributes them to various wholesalers and retailers. It has recently
subscribed to an interfirm comparison service. Members submit accounting ratios
as specified by the operator of the service, and in return, members receive the
average figures for each of the specified ratios taken from all of the companies in
the same sector that subscribe to the service. The specified ratios and the
average figures for Termi Nator Bhd’s sector are shown below.
Ratios of companies reporting a full year’s results for periods ending between
1 July 2020 and 30 September 2020
Return on capital employed
Net assets turnover
Gross profit margin
Net profit (before tax) margin
Current ratio
Quick ratio
Inventory holding period
Accounts receivable collection period
Accounts payable payment period
Debt to equity
Dividend yield
Dividend cover
22·1%
1·8 times
30%
12·5%
1·6:1
0·9:1
46 days
45 days
55 days
40%
6%
3 times
Termi Nator Bhd’s financial statement for the year to 30 September 2020 are set
out below:
Income statement for the period ended 30 September 2020
Sales revenue
Cost of sales
Gross profit
Other operating expenses
Operating profit
Interest payable
Exceptional item (note (ii))
Profit before taxation
Income tax
Profit after taxation
RM000
2,425
(1,870)
555
(215)
340
(34)
(120)
186
(90)
96
Extracts of changes in equity:
Accumulated profits – 1 October 2020
Net profit for the period
Dividends paid (interim RM60,000; final RM30,000)
179
96
(90)
Accumulated profits – 30 September 2020
185
Financial Position
as at 30 September
RM000
Non-current assets (note (i))
Current Assets
Inventory
Accounts receivable
Bank
RM000
540
275
320
nil
595
1,135
Share Capital and Reserves
Ordinary shares (25 cents each)
Accumulated profits
150
185
335
Non-current liabilities
8% loan notes
300
Current liabilities
Bank overdraft
Trade accounts payable
Taxation
65
350
85
500
1,135
Notes
(i) The details of the non-current assets are:
Cost Accumulated depreciation Net book value
At 30 September 2020
RM000
RM000
RM000
3,600
3,060
540
(ii) The exceptional item relates to losses on the sale of a batch of computers that
had become worthless due to improvements in microchip design.
(iii) The market price of Termi Nator Bhd’s shares throughout the year averaged
RM6·00 each.
Required:
(a) Explain the problems that are inherent when ratios are used to assess a
company’s financial performance.
Your answer should consider any additional problems that may be
encountered when using inter - firm comparison services such as that used
by Termi Nator Bhd.
(b) Calculate the ratios for Termi Nator Bhd equivalent to those provided by
the inter - firm comparison service.
(c) Write a report analysing the financial performance of Termi Nator Bhd
based on a comparison with the sector averages.
OR
Question 2 (50%)
Organisations need to understand why some management accounting
techniques may be more widely used than others. You should compare
Activity Based Costing ABC) with any two other methods of your choice.
Critically discuss.
You are required to read the following CW article and to reference it in your
essay:
Quinn,M., Elafi,E. and Mulgrew, M. (2017). Reasons for not changing to activitybased costing: a survey of Irish firms, PSU Research Review, Vol. 1 No. 1, pp.
63-70
You can also download the article from web or from official e merland.
https://www.emerald.com/insight/content/doi/10.1108/PRR-12-20160017/full/html
Advice for essay - This is a broad question. This is an important discussion
for the coursework sessions
GENERAL REQUIREMENTS – ACCOUNTING & FINANCE FOR MANAGERS
In total there will be 10 references in your assignment. References must be from
academic journals preferably after 2012, academic text materials (books, latest
article, newspapers, business magazine etc.), and recognized Web pages. No
Wikipedia, Investopedia etc will be allowed.
The framework of the Assignment should be structured as follows:
Indicative marking scheme
Introduction
• Link the essay’s focus to the CW title
• Use key references to selected academic journals
• Use one or two references to other sources (eg technical
or professional reports/ websites)
• Link to the Analysis
Analysis
• Link to the essay title throughout – good flow to essay
• Critical discussion throughout the analysis
• A well-developed argument which progresses through
your essay and is not a series of random points which
lack connections;
• Supported by sufficient
▪ Academic journal articles (at least 10 ‘current’
articles including the CW article)
▪ Additional evidence (professional journals)
• Appropriate use of sub-headings (if any)
Word count
(total 1500
+/- 10%)
Indicative
mark
150
15%
1000
55%
350
20%
C
Conclusion
• Links to the title and the Introduction
• Summarises the main findings
• Draws reasonable conclusion(s) based on the analysis
• Makes recommendations for practice and future research
based on the Analysis and concluding comments
Spelling, grammar and punctuation
• Spell checked with good grammar and punctuation
Referencing:
• Correct citations and a single list of references (A-Z order
for all sources)
Total
5%
5%
100%
(Note: You are given opportunity by the lecturer to review and comment
on your draft and suggested framework from time to time)
Submission Requirements
1. You are advised to submit your work with a proper font size (12), font style
(Arial / Times New Roman), spacing (1.5 lines), margin (top, bottom,
right=2.54cm, left=3.17cm) and follow Harvard Referencing style. Kindly
refer to the ‘Assignment Submission Guidelines’ for full details. (which was
distributed to you during induction day)
2. A cover page stating the student ID number and the course details is required.
3. To include word count at the end of the assignment. (Marks will be deducted
for exceeding word limit).
4. Any assignment that is not referenced to University standard will receive a
mark of zero.
5. Any assignment without a Turnitin report will also be receive a mark of zero.
6. Marked assignments will be returned to you with a written feedback.
* Marks will be deducted for non-compliance of the required
submission style.
Grading Criteria Used to Assess Your Work
Throughout the programme, lecturers will be grading your work in general terms
in accordance with the following grading criteria of a postgraduate programmes.
%
KNOWLEDGE
70-100
Comprehensive in
depth and breadth.
Current and
relevant.
Ability to engage
with and
interrogate the
subject at
UNDERSTANDIN
G
SKILLS
Ability to
extrapolate and
interrelate theory
and practice.
High degree of
literacy and
fluency of
expression.
Critical
understanding of
research approach
and research
context of the
High levels of
competence in
research skills.
Demonstrates a
CRITICAL
ANALYSIS
High order of
originally,
inspiration,
perception and
critical though.
Outstanding ability
to analyse
contradictions and
synthesise
research cutting
edge.
Extensive
referencing.
60-69
Substantial in
depth and breadth.
Current and
relevant.
Evidence of
knowledge of
subject at
research cutting
edge.
subject.
High level of
evaluation and
diagnosis.
Ability to
extrapolate and
interrelate theory
and practice.
Substantial
understanding or
research skills and
research context
of the subject.
highly
contextualised
ability to apply
professional
practice skills.
concepts.
Familiarity with
research skills in
the subject and
demonstration of
their use.
Work
demonstrates
critical thought and
reflects originality,
often
demonstrating
inspiration and
perception.
Demonstrates
ability to apply
professional
practice skills.
Generous
referencing.
50-59
Accurate, up- todate and relevant
in acceptable
depth and breadth.
Clear grasp of
concepts and
ability to relate
theory to practice.
References limited
to key texts and
sources.
0-49
Limited and often
inaccurate or
inadequate.
No or very limited
referencing.
Ability to
communicate
clearly in the
relevant discipline
at a professional
level.
Capability of
analysing
contradictions and
synthesising
concepts.
Demonstrates an
ability to analyse
and synthesise
independently.
Some originality of
thought.
Ability to construct
and sustain
argument.
Failure to
comprehend
relevant concepts
and inability to
relate theory to
practice
Work
demonstrates a
lack of coherence
and inability to
construct and
sustain argument.
Little or none.
Offers description
as a substitute for
explanation.
The assessment strategy for each module is outlined in the relevant module
handbook which will contain appropriate guidance, procedures and assessment
criteria by degree classification. Ask your lecturer(s) if you have any doubts about
the assessment process or the assessment criteria they issue you with. The
assessment criteria are designed to help you achieve good marks and develop in
your studies.
Passing and Failing
To pass a module you must normally attain an overall mark in that module of at
least 50% for the MBA Programme. The ‘overall mark’ is obtained by aggregating
the component marks together according to the weightings given in the module
specifications available via UEL Direct. In addition to obtaining 50% for MBA
Programme you must obtain the threshold 40% mark in all assessment
components.
Late Submission Without Extenuating Circumstances Penalties Are
NUMBER OF DAYS
LATE SUBMISSION
PENALTY
1 day late
5%-mark deduction
2 – 3 days late
10%-mark deduction
4 – 5 days late
20%-mark deduction
6 days onwards late
ZERO (0) mark will be given
Note: NO APPROVAL ON EXTENSION will be given based on WORK
COMMITMENTS except for Medical reason (i.e. hospitalisation).