Short Form assessment (SFA) Mock
MODULE ASSESSMENT:
MOCK Short Form Assessment
COLLEGE:
Lincoln International Business School
SCHOOL:
Lincoln International Business School
MODULE:
Finance and Accounting
MODULE CODE:
ACC9011M
LEVEL:
Postgraduate
CO-ORDINATOR:
Geeta Lakshmi
SUBMISSION DATE:
FEEDBACK DATE:
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INSTRUCTIONS TO STUDENTS:
The submission must be uploaded electronically only via BB through Turnitin by Hard
copies will not be accepted or marked.
The submission counts for 70% of the total assessment for the module.
Learning Outcomes Assessed: All (see Handbook)
LO1 Define and investigate the cost volume profit relationship within a firm.
LO2 Evaluate the role of cash and its effect on the firm and illustrate an
understanding of the time value of money.
LO3 Evaluate and explain the theoretical framework of pricing strategies.
LO4 Understand and evaluate sources of capital for a company or public body.
LO5 Critically appraise an organisation and analyse its financial health through
ratios.
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IMPORTANT NOTE:
PLEASE LABEL YOUR WORK WITH YOUR NAME, ENROLMENT NUMBER, MODULE
TITLE AND CODE
Please also carefully consider the directions in your student handbook regarding
academic offences. If you refer to the ideas of other writers, you must always
acknowledge your source. This includes information from the internet sources.
You are the financial manager working for a chocolate retailer.
Hotel McChoc is a company which imports cocoa from Ghana to make designer chocolates to
sell in the UK. The cost of the raw materials and labour is £10 pounds per box and the items
are sold in the open market for £15 pounds each. Overhead expenses are £500,000 per
annum.
The company is considering fitting new machines to increase production. The total cost of the
refit will be £5 million but is expected to save £0.4 million per year in subsequent years for
the next 5 years. (In the 6th year, the Council will re-evaluate the position). The yearly cost of
maintaining the machines will be £0.02 million in the first year increasing by 10% every year
to meet inflationary pressures. In the 6th year, the Council will have to dismantle the pipework
at a cost of £0.1 million but is expected to sell the machines for scrap at £0.05million. The
company cost of capital is 10%.
Its current financial ratios are :
P/E multiple: 97.78
EPS: 4.5 p
Return on Equity: 7.93%
Fixed Asset Turnover: 1.90
Return on Capital Employed: 7.54%
Required: You are required to present at the Board the performance of the company on
the following:
A) Comment on the short-term breakeven position and the margin of safety.
If the variable cost increases suddenly by 10%, what is the increase (decrease) in profits,
assuming the company is selling 250,000 boxes per annum? How would the income
statement be impacted?
Explain why contribution is proportionate to sales and total variable cost in the short term
but fixed costs are not.
B) Interpret and explain the use of the above ratios. Explain the weakness of financial
(ratio) analysis.
C) Examine the feasibility of the investment appraisal using a suitable method. Contrast your
chosen method with two other methods.
Guidance
1.
The required maximum total length of this submission is 2,000 words.
2.
You must support your submission with full calculations, key figures or
supporting information.
3.
Please note that any information presented in figures, charts, graphs, tables
throughout the main body of the report are excluded from the word count. The word
count is a maximum of 2000 words.
4.
Ensure you have used the referencing style of the University (Harvard) where
material is taken from.
5.
You are reminded of the serious consequences of breaching the University’s
regulations in respect of plagiarism. Details of these regulations are available via the
Portal.
6.
Your report should be submitted electronically via Turnitin link on the
Blackboard. The submission deadline must be strictly respected, and submission must
be completed within 24 hours of the release of this assignment.
Prompts for the report:
▪
Make sure that your full name and student registration number is clearly
shown on each page of your work and on the front sheet.
(It is suggested to use it in a footer, so it appears on each page)
▪
Font – Arial/Calibri/Times New Roman
▪
Font size – 12; Same font style and size throughout
▪
Appropriate report style
▪
Use double or 1.5 lines spacing and single sided printing
▪
Page Numbering (number every page)
▪
Academic English (Use the spell and grammar checker (English UK)
Grading
This work will be graded but you will not receive feedback on it. Along with the usual criteria
for written assessments such as the document’s structure, appropriate use of sub-headings,
logical and smooth flow of argument, language style and the correct use of grammar and
punctuation, other more in-depth performance indicators will be employed.
For the Submission, you can refer to this rubric:
Area
(weighting)
Fail
<40 clear
fail
Writing (15%)
Good
Good Distincti
Distincti
Merit onon
onon
Narrow
Fail
Pass
Clear
Pass
Merit
4049%
50-54%
55%59%
60% 65-69% 70-74% 75-79%
64%
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You will receive your grade for the assessment after 15 working days.
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