Faculty of Business, Finance and Information Technology
Assessments
Key Information
Programme
: Master of Business Administration
Module Title
: Management & Cost Accounting
Module Code
: MBA- 6063
Module Leader
: Dr. Rasheedul Haque
Email of the Module Leader
: rasheedul@mahsa.edu.my
Semester/ Year
: Semester 1 Year 1
Credit Value
:3
Academic Session
: May 2021
This continuous assessment project comprises 60% of the total module mark and will consist
of one group case study analysis presentation (20%)-covering the CLO1, CLO2 & CLO3 and
research report (40%) – covering CLO4 & CLO5. Overall course structure as per below:
ASSESSMENT MODE
WEIGHTAGE (%)
Assignment 1: Individual
30%
Assignment 2: Research Report – Group work
30%
Final Assignment
40%
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Assignment 1 (INDIVIDUAL)
Course Learning Outcomes:
Upon completion of the assignment, the students are able to:
1. Construct the process of cost determination, Identify and analyze costs behaviour and
the application of activity-based costing.
Sky Aerials Co (Sky) manufactures satellite dishes for receiving satellite television signals.
Sky supplies the major satellite TV companies who install standard satellite dishes for their
customers. The company also manufactures and installs a small number of specialised
satellite dishes to individuals or businesses with specific needs resulting from poor reception
in their locations.
The chief executive officer (CEO) wants to initiate a programme of cost reduction at Sky. His
plan is to use activity-based management (ABM) to allocate costs more accurately and to
identify non-value adding activities. The first department to be analysed is the customer care
department, as it has been believed for some time that the current method of cost allocation is
giving unrealistic results for the two product types. At present, the finance director (FD)
absorbs the cost of customer care into the product cost on a per unit basis using the data in
table 1.
He then tries to correct the problem of unrealistic costing, by making rough estimates of the
costs to be allocated to each product based on the operations director’s impression of the
amount of work of the department. In fact, he simply adds RM 100 above the standard
absorbed cost to the cost of a specialised dish to cover the assumed extra work involved at
customer care. The cost accountant has gathered information for the customer care
department in table 2 from interviews with the finance and customer care staff. She has used
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this information to correctly calculate the total costs of each activity using activity-based
costing in table 3.
Sky Dishes (information for the year ending 31 March 2021)
Customer care (CC) department
Table 1: Existing costing data
RM ’000
Salaries
400
Computer time
165
Telephone
79
Stationery and sundries
27
Depreciation of equipment
36
707
Additional Information
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1. CC cost is currently allocated to each dish based on 16,000 orders a year, where each
order contains an average of 5.5 dishes.
Table 2: Activity-costing data
Activities of CC dept
Handling enquiries and preparing quotes
Staff time
40%
for potential orders
Receiving actual orders
Comments
relates to 35,000
enquiries/quotes per year
10%
relates to 16,000 orders in
the year
Customer credit checks
10%
done once an order is
received
Supervision of orders through manufacture
15%
to delivery
Complaints handling
25%
relates to 3,200 complaints
per year
i.
Total department cost is allocated using staff time as this drives all of the other
costs in the department.
ii.
90% of both enquiries and orders are for standard dishes. The remainder are
for specialised dishes.
iii.
Handling enquiries and preparing quotes for specialised dishes takes 20% of
staff time allocated to this activity.
iv.
The process for receiving an order, checking customer credit and supervision
of the order is the same for both a specialised dish order and a standard dish
order.
v.
50% of the complaints received are for specialised dish orders.
vi.
Each standard dish order contains an average of six dishes.
vii.
Each specialised dish order contains an average of one dish.
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Table 3: Activity-based costs
Total
Standard
Specialised
RM
RM
RM
Handling enquiries and preparing quotes
282,800
226,240
56,560
Receiving actual orders
70,700
63,630
7,070
Customer credit checks
70,700
63,630
7,070
Supervision of order through manufacture
106,050
95,445
10,605
Complaints handling
176,750
88,375
88,375
TOTAL
707,000
537,320
169,680
to delivery
The CEO wants you, as a senior management accountant, to complete the work required for a
comparison of the results of the current standard absorption costing to activity-based costing
for the standard and specialised dishes. Once this is done, the CEO wants you to consider the
implications for management of the customer care process of the costs of each activity in that
department. The CEO is especially interested in how this information may impact on the
identification of non-valued added activities and quality management at Sky.
Required:
(a)
Evaluate the impact of using activity-based costing, compared to the existing costing
system for customer care, on the cost of both types of product.
(55 marks)
(b)
Assess how the information on each activity can be used and improved upon at Sky
in assisting cost reduction and quality management in the customer care department.
(45 marks)
[Total 100 Marks]
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Marking scheme rubric.
Criteria
Marks
Relevance
Directly relevant to the requirements of the assessment.
/20
Knowledge
A substantial knowledge of relevant materials, showing a clear grasp of
/20
themes, questions and issues therein.
Analysis
Good analysis, clear and orderly.
/25
Argument and Structure
Generally coherent and logically structured, using an appropriate mode
/20
of argument and/or theoretical model(s).
Critical Evaluation
May contain some distinctive or independent thinking; may being to
/10
formulate an independent position in relation to theory and/or practice.
Presentation
Well written, with standard spelling and grammar, in a readable style
/5
withy acceptable style with acceptable format.
Total
/100
Assignment submission date: 30th June 2021
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Assignment 2: (GROUP – 6 MEMBERS IN A GROUP)
This assessment constitutes 20% of the overall mark for the module and the aim of this
assessment is to enable student to:
i.
Justify their technique in solving cost accounting and issues related to its nature and roles
(CLO2).
By using your own organization, or the organization that you are familiar with, identify the
new managerial philosophy that the organization has implemented or planning to implement.
You are required to identify the causes for such implementation and the impact on the
management accounting as well as the organization as a whole. The new managerial
philosophy includes but not limited to:
1. Total Quality Management
2. Six Sigma
3. Lean Manufacturing
4. Just in Time
5. Kanban
6. Agile Manufacturing
7. Value Chain, and so on.
Your answer should covers the following:

A brief introduction about the organization

The issues related to the organization

The new philosophy implemented

The impact on the management accounting

The impact on the organization

Conclusion
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The above list is meant to be suggestive and by no means exhaustive. You should select the
direction and approach that is most effective. The preceding research should be linked to the
rise of various contemporary management accounting techniques where discussion and critical
evaluation is required. You should find some articles which are positive and some which have
found drawbacks, and you should choose articles which help you gain a general insight into the
benefits and possible drawbacks of various modern management accounting techniques.
Report Writing format: Your work must be produced using MS Word or similar.
1.
Font: Times New Roman 12
2.
Spacing: One and a half (1.5)
3.
Number of words: 1,500 to 2,000 words (approximately)
4.
Numbering of page: bottom, center.
Assignment submission date: 24rd JULY 2021
Marking scheme rubric.
Criteria
Marks
Relevance
Directly relevant to the requirements of the assessment.
/20
Knowledge
A substantial knowledge of relevant materials, showing a clear grasp of
/20
themes, questions and issues therein.
Argument and Structure
Generally coherent and logically structured, using an appropriate mode
/20
of argument and/or theoretical model(s).
Critical Evaluation
May contain some distinctive or independent thinking; may being to
/10
formulate an independent position in relation to theory and/or practice.
Presentation
Well written, with standard spelling and grammar, in a readable style
/20
withy acceptable style with acceptable format.
8
Reference to Literature
Critical appraisal of up-to-date and/or appropriate literature. Recognition
of different perspectives. Very good use of source material. Uses a range
/10
of sources of sources.
Total
/100
Additional Instructions:
Students are required to submit the assignment in time. Any late submission will not be
accepted. A mark of ZERO will be awarded for late or no submission. Students are advised
to make another copy for own reference.
Feedback
Students can inquire the assignment feedback and grades. However, official grades will be
published on the notice board.
Examination scripts are retained by MAHSA University and are not returned to students.
However, students are entitled in obtaining feedback on student’s performance in the
examination. Student may request an appeal with the Programme Leader to re-mark student’s
examination script. As a Standard Operating Procedure, a Re-Mark charge is RM50.00 for a
paper payable upon submission of the Re-Mark Form.
Marks
It is compulsory for student to PASS all the components of the examination. Students are
required to achieve a minimum of 50% of the accumulated marks to pass. However, if
student fail one of the component of the module, student will be awarded with
CONDITIONAL PASS where student must RE-SIT the exam. Failing to re-sit in the
semester will cause the student to REPEAT the whole course module in the coming semester
if the module is offered.
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Assessment Offences
Academic offences include plagiarism, cheating, collusion, copying work and reusing your
own work among others.
The University takes academic offences very seriously and this can lead to expulsion. We
make every effort to ensure that the students will avoid from committing such offences. The
need in maintaining the order in examination and non-examination is to preserve the highest
standard of academic integrity. Students are reminded to produce and submit their original
work.
Definitions of Assessment Offences
Plagiarism
Plagiarism can be defined as the significant use of other people's work and the submission of
it as though it were one's own in assessed coursework (such as dissertations, essays,
experiments etc.). This includes:

Copying from another student's work;

Copying text without acknowledgement;

Downloading information and/or text from the internet and using it without
acknowledgement;

Submitting work and claiming it to be own when it has been produced by another group;
and

Submitting group work without acknowledging all contributors.
The university uses software packages to detect plagiarism.
Cheating
Cheating in examinations can be defined as trying to gain unfair advantage over fellow
students. This includes:

Having notes, programmable calculators or any other method to secure the information
which are not allowed in the examination, whether the student use it or not;
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
Having any mobile phone or other communication devices in the exam room;

Copying from the examination script of another candidate;

Helping another candidate; and

Trying to bribe respective lecturers to obtain good marks.
Collusion
Collusion is a form of agreement between two or more people to act with the intention to
deceive an assessor as to who was responsible for producing the material submitted for
assessment. The agreement may be overt (openly discussed) or covert (not specifically
discussed but implied). Using someone else’s work, words, images, ideas or discoveries is
equal to stealing the hard work. This includes:

agreeing with others to cheat;

getting someone else to produce part or all your work;

copying the work of another person (with their permission);

submitting work from essay banks;

paying someone to produce work for you; and

allowing another student to copy your own work.
Methods to Avoid Academic Offence
Students are advised to avoid copying and using other people’s work without citation and
acknowledgement. It is compulsory for students to include the references and the source of
information. This will allow students to avoid plagiarism.
Procedures for Assessment Offences
If students are caught committing the offence, a report of offence will be written. Students
will be called for a mini hearing whereby students can justify their action. The University has
the right to suspend or even terminate the student should University found the action as a
serious offence. Kindly refer to MAHSA Student Handbook for more details.
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